Bill Text: MI SB0540 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Property tax; assessments; definition of transfer of ownership; modify certain excluded transfers. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-09-07 - Referred To Committee On Local Government [SB0540 Detail]

Download: Michigan-2017-SB0540-Introduced.html

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SENATE BILL No. 540

 

 

September 7, 2017, Introduced by Senator SCHUITMAKER and referred to the Committee on Local Government.

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 27a (MCL 211.27a), as amended by 2016 PA 375.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 27a. (1) Except as otherwise provided in this section,

 

property shall be assessed at 50% of its true cash value under

 

section 3 of article IX of the state constitution of 1963.

 

     (2) Except as otherwise provided in subsection (3), for taxes

 

levied in 1995 and for each year after 1995, the taxable value of

 

each parcel of property is the lesser of the following:

 

     (a) The property's taxable value in the immediately preceding

 

year minus any losses, multiplied by the lesser of 1.05 or the

 

inflation rate, plus all additions. For taxes levied in 1995, the

 

property's taxable value in the immediately preceding year is the

 

property's state equalized valuation in 1994.

     (b) The property's current state equalized valuation.

 

     (3) Upon a transfer of ownership of property after 1994, the

 

property's taxable value for the calendar year following the year

 

of the transfer is the property's state equalized valuation for the

 

calendar year following the transfer.

 

     (4) If the taxable value of property is adjusted under

 

subsection (3), a subsequent increase in the property's taxable

 

value is subject to the limitation set forth in subsection (2)

 

until a subsequent transfer of ownership occurs. If the taxable

 

value of property is adjusted under subsection (3) and the assessor

 

determines that there had not been a transfer of ownership, the

 

taxable value of the property shall be adjusted at the July or

 

December board of review. Notwithstanding the limitation provided

 

in section 53b(1) on the number of years for which a correction may

 

be made, the July or December board of review may adjust the

 

taxable value of property under this subsection for the current

 

year and for the 3 immediately preceding calendar years. A

 

corrected tax bill shall be issued for each tax year for which the

 

taxable value is adjusted by the local tax collecting unit if the

 

local tax collecting unit has possession of the tax roll or by the

 

county treasurer if the county has possession of the tax roll. For

 

purposes of section 53b, an adjustment under this subsection shall

 

be considered the correction of a clerical error.

 

     (5) Assessment of property, as required in this section and

 

section 27, is inapplicable to the assessment of property subject

 

to the levy of ad valorem taxes within voted tax limitation

 

increases to pay principal and interest on limited tax bonds issued

by any governmental unit, including a county, township, community

 

college district, or school district, before January 1, 1964, if

 

the assessment required to be made under this act would be less

 

than the assessment as state equalized prevailing on the property

 

at the time of the issuance of the bonds. This inapplicability

 

continues until levy of taxes to pay principal and interest on the

 

bonds is no longer required. The assessment of property required by

 

this act applies for all other purposes.

 

     (6) As used in this act, "transfer of ownership" means the

 

conveyance of title to or a present interest in property, including

 

the beneficial use of the property, the value of which is

 

substantially equal to the value of the fee interest. Transfer of

 

ownership of property includes, but is not limited to, the

 

following:

 

     (a) A conveyance by deed.

 

     (b) A conveyance by land contract. The taxable value of

 

property conveyed by a land contract executed after December 31,

 

1994 shall be adjusted under subsection (3) for the calendar year

 

following the year in which the contract is entered into and shall

 

not be subsequently adjusted under subsection (3) when the deed

 

conveying title to the property is recorded in the office of the

 

register of deeds in the county in which the property is located.

 

     (c) A conveyance to a trust after December 31, 1994, except

 

under any of the following conditions:

 

     (i) If the settlor transferor or the settlor's transferor's

 

spouse, or both, conveys the property to the trust and the sole

 

present beneficiary or beneficiaries are the settlor transferor or

the settlor's transferor's spouse, or both.

 

     (ii) Beginning December 31, 2014, for residential real

 

property, if the settlor transferor or the settlor's transferor's

 

spouse, or both, conveys the residential real property to the trust

 

and the sole present beneficiary or beneficiaries are the settlor's

 

transferor's or the settlor's transferor's spouse's mother, father,

 

brother, sister, son, daughter, adopted son, adopted daughter,

 

grandson, or granddaughter, and or are 1 or more of these

 

individuals, for so long as the residential real property is not

 

used for any commercial purpose classification under section 34c

 

does not change following the conveyance. Upon request by the

 

department of treasury or the assessor, the sole present

 

beneficiary or beneficiaries a transferee shall furnish proof

 

within 30 days that the sole present beneficiary or beneficiaries

 

meet transferee meets the requirements of this subparagraph. If a

 

present beneficiary transferee fails to comply with a request by

 

the department of treasury or assessor under this subparagraph,

 

that present beneficiary transferee is subject to a fine of

 

$200.00.

 

     (d) A conveyance by distribution from a trust, except under

 

any of the following conditions:

 

     (i) If the distributee is the sole present beneficiary or the

 

spouse of the sole present beneficiary, or both, or is a trust and

 

the sole present beneficiary or beneficiaries are either or both of

 

these individuals.

 

     (ii) Beginning December 31, 2014, a distribution of

 

residential real property if the distributee is the settlor's or

the settlor's spouse's mother, father, brother, sister, son,

 

daughter, adopted son, adopted daughter, grandson, or granddaughter

 

and of a sole present beneficiary or beneficiaries, or of the

 

spouse of a sole present beneficiary or beneficiaries, or is 1 or

 

more of these individuals, or is a trust and the sole present

 

beneficiary or beneficiaries are 1 or more of these individuals,

 

for so long as the residential real property is not used for any

 

commercial purpose classification under section 34c does not change

 

following the conveyance. Upon request by the department of

 

treasury or the assessor, the sole present beneficiary or

 

beneficiaries a distributee shall furnish proof within 30 days that

 

the sole present beneficiary or beneficiaries meet distributee

 

meets the requirements of this subparagraph. If a present

 

beneficiary distributee fails to comply with a request by the

 

department of treasury or assessor under this subparagraph, that

 

present beneficiary distributee is subject to a fine of $200.00.

 

     (e) A change in the sole present beneficiary or beneficiaries

 

of a trust, except under any of the following conditions:

 

     (i) A change that adds or substitutes the spouse of the sole

 

present beneficiary, or a trust and the sole present beneficiary is

 

the spouse of the sole present beneficiary.

 

     (ii) Beginning December 31, 2014, for residential real

 

property, a change that adds or substitutes the settlor's or the

 

settlor's spouse's mother, father, brother, sister, son, daughter,

 

adopted son, adopted daughter, grandson, or granddaughter and of a

 

sole present beneficiary or beneficiaries, or of the spouse of a

 

sole present beneficiary or beneficiaries, or adds or substitutes 1

or more of these individuals, or is a trust and the sole present

 

beneficiary or beneficiaries are 1 or more of these individuals,

 

for so long as the residential real property is not used for any

 

commercial purpose classification under section 34c does not change

 

following the conveyance. Upon request by the department of

 

treasury or the assessor, the sole present beneficiary or

 

beneficiaries a transferee shall furnish proof within 30 days that

 

the sole present beneficiary or beneficiaries meet transferee meets

 

the requirements of this subparagraph. If a present beneficiary

 

transferee fails to comply with a request by the department of

 

treasury or assessor under this subparagraph, that present

 

beneficiary transferee is subject to a fine of $200.00.

 

     (f) A conveyance by distribution under a will or by intestate

 

succession, to a transferee as the result of the death of a

 

property owner because the transferee was a distributee under a

 

will or intestate succession, grantee of a deed, trust beneficiary,

 

beneficiary of a beneficiary designation, appointee, or taker in

 

default of a power of appointment, except under any of the

 

following conditions:

 

     (i) If the distributee transferee is the decedent's spouse, or

 

is a trust and the sole present beneficiary is the decedent's

 

spouse.

 

     (ii) Beginning December 31, 2014, for residential real

 

property, if the distributee transferee is the decedent's or the

 

decedent's spouse's mother, father, brother, sister, son, daughter,

 

adopted son, adopted daughter, grandson, or granddaughter, and or

 

is 1 or more of these individuals, or is a trust and the sole

present beneficiary or beneficiaries are 1 or more of these

 

individuals, for so long as the residential real property is not

 

used for any commercial purpose classification under section 34c

 

does not change following the conveyance. Upon request by the

 

department of treasury or the assessor, the sole present

 

beneficiary or beneficiaries a transferee shall furnish proof

 

within 30 days that the sole present beneficiary or beneficiaries

 

meet transferee meets the requirements of this subparagraph. If a

 

present beneficiary transferee fails to comply with a request by

 

the department of treasury or assessor under this subparagraph,

 

that present beneficiary transferee is subject to a fine of

 

$200.00.

 

     (g) A conveyance by lease if the total duration of the lease,

 

including the initial term and all options for renewal, is more

 

than 35 years or the lease grants the lessee a bargain purchase

 

option. As used in this subdivision, "bargain purchase option"

 

means the right to purchase the property at the termination of the

 

lease for not more than 80% of the property's projected true cash

 

value at the termination of the lease. After December 31, 1994, the

 

taxable value of property conveyed by a lease with a total duration

 

of more than 35 years or with a bargain purchase option shall be

 

adjusted under subsection (3) for the calendar year following the

 

year in which the lease is entered into. This subdivision does not

 

apply to personal property except buildings described in section

 

14(6) and personal property described in section 8(h), (i), and

 

(j). This subdivision does not apply to that portion of the

 

property not subject to the leasehold interest conveyed.

     (h) Except as otherwise provided in this subdivision and

 

subsection (7), a conveyance or successive conveyances of an

 

ownership interest in a corporation, partnership, sole

 

proprietorship, limited liability company, limited liability

 

partnership, or other legal entity if the ownership interest

 

conveyed on a cumulative basis since the date taxable value was

 

first established for taxes levied in 1995 under subsection (2) or

 

the date that taxable value was last adjusted under subsection (3),

 

whichever date is later, is more than 50% of the total ownership

 

interest in the corporation, partnership, sole proprietorship,

 

limited liability company, limited liability partnership, or other

 

legal entity. Unless notification is provided under subsection

 

(10), the corporation, partnership, sole proprietorship, limited

 

liability company, limited liability partnership, or other legal

 

entity shall notify the assessing officer on a form provided by the

 

state tax commission not more than 45 days after a conveyance of an

 

ownership interest that constitutes a transfer of ownership under

 

this subdivision. Both of the following apply to This subdivision

 

is subject to all of the following:

 

     (i) For a corporation subject to 1897 PA 230, MCL 455.1 to

 

455.24, :

 

     (i) both of the following apply:

 

     (A) A transfer of stock of the corporation is a transfer of

 

ownership only with respect to the real property that is assessed

 

to the transferor lessee stockholder.

 

     (B) (ii) A cumulative conveyance of more than 50% of the

 

corporation's stock does not constitute a transfer of ownership of

the corporation's real property.

 

     (ii) Beginning on December 31, 2016, a conveyance during the

 

transferor's lifetime, or by inheritance, or by distribution from a

 

trust, or otherwise of an ownership interest, of any percentage, in

 

a corporation, partnership, sole proprietorship, limited liability

 

company, limited liability partnership, or other legal entity is

 

not a transfer of ownership if the transferee is the transferor's

 

spouse or is a trust and the sole present beneficiary or

 

beneficiaries are the transferor, the transferor's spouse, or both.

 

     (iii) Beginning on December 31, 2016, a conveyance during the

 

transferor's lifetime, or by inheritance, or by distribution from a

 

trust, or otherwise of an ownership interest, of any percentage, in

 

a limited liability company is not a transfer of ownership of

 

residential real property owned by the limited liability company if

 

the transferee is the transferor's or the transferor's spouse's

 

mother, father, brother, sister, son, daughter, adopted son,

 

adopted daughter, grandson, granddaughter, aunt, uncle, niece, or

 

nephew, or is a lineal descendant of 1 or more of these

 

individuals. Upon request by the department of treasury or the

 

assessor, the transferee shall furnish proof within 30 days that

 

the transferee meets the requirements of this subparagraph. If a

 

transferee fails to comply with a request by the department of

 

treasury or assessor under this subparagraph, that transferee is

 

subject to a fine of $200.00.

 

     (i) A transfer of property held as a tenancy in common, except

 

that portion of the property not subject to the ownership interest

 

conveyed.

     (j) A conveyance of an ownership interest in a cooperative

 

housing corporation, except that portion of the property not

 

subject to the ownership interest conveyed.

 

     (k) Notwithstanding the provisions of section 7ee(5), at the

 

request of a property owner, an assessor's establishment of a

 

separate tax parcel for a portion of a parcel that ceases to be

 

qualified agricultural property but is not subject to a land

 

division under the land division act, 1967 PA 288, MCL 560.101 to

 

560.293, or any local ordinance. For purposes of this subdivision,

 

a transfer of ownership occurs only as to that portion of the

 

parcel established as a separate tax parcel and only that portion

 

shall have its taxable value adjusted under subsection (3) and

 

shall be subject to the recapture tax provided for under the

 

agricultural property recapture act, 2000 PA 261, MCL 211.1001 to

 

211.1007. The adjustment under subsection (3) shall be made as of

 

the December 31 in the year that the portion of the parcel

 

established as a separate tax parcel ceases to be qualified

 

agricultural property. A portion of a parcel subject to this

 

subdivision is considered a separate tax parcel only for those

 

purposes described in this subdivision.

 

     (7) Transfer of ownership does not include the following:

 

     (a) The transfer of property from 1 spouse to the other spouse

 

or from a decedent to a surviving spouse.

 

     (b) A transfer from a husband, a wife, or a married couple 1

 

or both spouses creating or disjoining a tenancy by the entireties

 

in the grantors or the grantor and his or her spouse.

 

     (c) Subject to subdivision (d), a A transfer of that portion

of property subject to a life estate or life lease retained by the

 

transferor, until expiration or termination of the life estate or

 

life lease. That portion of property transferred that is not

 

subject to a life lease shall be adjusted under subsection (3).

 

However, beginning December 31, 2016, the expiration or termination

 

of the life estate or life lease is also not a transfer of

 

ownership if either of the following is true:

 

     (i) The transferee is the transferor's spouse, or is a trust

 

and the sole present beneficiary is the transferor's spouse.

 

     (ii) The property is residential real property and the

 

transferee is the transferor's or transferor's spouse's mother,

 

father, brother, sister, son, daughter, adopted son, adopted

 

daughter, grandson, or granddaughter, or is 1 or more of these

 

individuals, or is a trust and the sole present beneficiary or

 

beneficiaries are 1 or more of these individuals, for so long as

 

the residential real property classification under section 34c does

 

not change following the conveyance. Upon request by the department

 

of treasury or the assessor, a transferee shall furnish proof

 

within 30 days that the transferee meets the requirements of this

 

subparagraph. If a transferee fails to comply with a request by the

 

department of treasury or assessor under this subparagraph, that

 

transferee is subject to a fine of $200.00.

 

     (d) Beginning December 31, 2014, a transfer of that portion of

 

residential real property that had been subject to a life estate or

 

life lease retained by the transferor resulting from expiration or

 

termination of that life estate or life lease, if the transferee is

 

the transferor's or transferor's spouse's mother, father, brother,

sister, son, daughter, adopted son, adopted daughter, grandson, or

 

granddaughter and the residential real property is not used for any

 

commercial purpose following the transfer. Upon request by the

 

department of treasury or the assessor, the transferee shall

 

furnish proof within 30 days that the transferee meets the

 

requirements of this subdivision. If a transferee fails to comply

 

with a request by the department of treasury or assessor under this

 

subdivision, that transferee is subject to a fine of $200.00.

 

     (d) (e) A transfer through foreclosure or forfeiture of a

 

recorded instrument under chapter 31, 32, or 57 of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and

 

MCL 600.5701 to 600.5759, or through deed or conveyance in lieu of

 

a foreclosure or forfeiture, until the mortgagee or land contract

 

vendor subsequently transfers the property. If a mortgagee does not

 

transfer the property within 1 year of the expiration of any

 

applicable redemption period, the property shall be adjusted under

 

subsection (3).

 

     (e) (f) A transfer by redemption by the person to whom taxes

 

are assessed of property previously sold for delinquent taxes.

 

     (f) (g) A conveyance to a trust if the settlor transferor or

 

the settlor's transferor's spouse, or both, conveys the property to

 

the trust and any of the following conditions are satisfied:

 

     (i) If the sole present beneficiary of the trust is the

 

settlor transferor or the settlor's transferor's spouse, or both.

 

     (ii) Beginning December 31, 2014, for residential real

 

property, if the sole present beneficiary of the trust is the

 

settlor's transferor's or the settlor's transferor's spouse's

mother, father, brother, sister, son, daughter, adopted son,

 

adopted daughter, grandson, or granddaughter, and or is 1 or more

 

of these individuals, for so long as the residential real property

 

is not used for any commercial purpose classification under section

 

34c does not change following the conveyance. Upon request by the

 

department of treasury or the assessor, the sole present

 

beneficiary or beneficiaries a transferee shall furnish proof

 

within 30 days that the sole present beneficiary or beneficiaries

 

meet transferee meets the requirements of this subparagraph. If a

 

present beneficiary transferee fails to comply with a request by

 

the department of treasury or assessor under this subparagraph,

 

that present beneficiary transferee is subject to a fine of

 

$200.00.

 

     (g) (h) A transfer pursuant to a judgment or order of a court

 

of record making or ordering a transfer, unless a specific monetary

 

consideration is specified or ordered by the court for the

 

transfer.

 

     (h) (i) A transfer creating or terminating a joint tenancy

 

between 2 or more persons if at least 1 of the persons was an

 

original owner of the property before the joint tenancy was

 

initially created and, if the property is held as a joint tenancy

 

at the time of conveyance, at least 1 of the persons was a joint

 

tenant when the joint tenancy was initially created and that person

 

has remained a joint tenant since the joint tenancy was initially

 

created. A joint owner at the time of the last transfer of

 

ownership of the property is an original owner of the property. For

 

purposes of this subdivision, a person is an original owner of

property owned by that person's spouse.

 

     (i) (j) A transfer for security or an assignment or discharge

 

of a security interest.

 

     (j) (k) A transfer of real property or other ownership

 

interests among members of an affiliated group. As used in this

 

subsection, "affiliated group" means 1 or more corporations

 

connected by stock ownership to a common parent corporation. Upon

 

request by the state tax commission, a corporation shall furnish

 

proof within 45 days that a transfer meets the requirements of this

 

subdivision. A corporation that fails to comply with a request by

 

the state tax commission under this subdivision is subject to a

 

fine of $200.00.

 

     (k) (l) Normal public trading of shares of stock or other

 

ownership interests that, over any period of time, cumulatively

 

represent more than 50% of the total ownership interest in a

 

corporation or other legal entity and are traded in multiple

 

transactions involving unrelated individuals, institutions, or

 

other legal entities.

 

     (l) (m) A transfer of real property or other ownership

 

interests among corporations, partnerships, limited liability

 

companies, limited liability partnerships, or other legal entities

 

if the entities involved are commonly controlled. Upon request by

 

the state tax commission, a corporation, partnership, limited

 

liability company, limited liability partnership, or other legal

 

entity shall furnish proof within 45 days that a transfer meets the

 

requirements of this subdivision. A corporation, partnership,

 

limited liability company, limited liability partnership, or other

legal entity that fails to comply with a request by the state tax

 

commission under this subdivision is subject to a fine of $200.00.

 

     (m) (n) A direct or indirect transfer of real property or

 

other ownership interests resulting from a transaction that

 

qualifies as a tax-free reorganization under section 368 of the

 

internal revenue code, 26 USC 368. Upon request by the state tax

 

commission, a property owner shall furnish proof within 45 days

 

that a transfer meets the requirements of this subdivision. A

 

property owner who fails to comply with a request by the state tax

 

commission under this subdivision is subject to a fine of $200.00.

 

     (n) (o) Except as provided in subsection (6)(k), a transfer of

 

qualified agricultural property, if the person to whom the

 

qualified agricultural property is transferred files an affidavit

 

with the assessor of the local tax collecting unit in which the

 

qualified agricultural property is located and with the register of

 

deeds for the county in which the qualified agricultural property

 

is located attesting that the qualified agricultural property will

 

remain qualified agricultural property. The affidavit under this

 

subdivision shall be in a form prescribed by the department of

 

treasury. An owner of qualified agricultural property shall inform

 

a prospective buyer of that qualified agricultural property that

 

the qualified agricultural property is subject to the recapture tax

 

provided in the agricultural property recapture act, 2000 PA 261,

 

MCL 211.1001 to 211.1007, if the qualified agricultural property is

 

converted by a change in use, as that term is defined in section 2

 

of the agricultural property recapture act, 2000 PA 261, MCL

 

211.1002. If property ceases to be qualified agricultural property

at any time after a transfer subject to this subdivision, all of

 

the following shall occur:

 

     (i) The taxable value of that property, or, if subsection

 

(6)(k) applies, a portion of it established as a separate tax

 

parcel, shall be adjusted under subsection (3) as of the December

 

31 in the year that the property, or, if subsection (6)(k) applies,

 

a portion of it established as a separate tax parcel, ceases to be

 

qualified agricultural property.

 

     (ii) The property, or, if subsection (6)(k) applies, a portion

 

of it established as a separate tax parcel, is subject to the

 

recapture tax provided for under the agricultural property

 

recapture act, 2000 PA 261, MCL 211.1001 to 211.1007.

 

     (o) (p) A transfer of qualified forest property, if the person

 

to whom the qualified forest property is transferred files a

 

qualified forest taxable value affidavit with the assessor of the

 

local tax collecting unit in which the qualified forest property is

 

located and with the register of deeds for the county in which the

 

qualified forest property is located attesting that the qualified

 

forest property will remain qualified forest property. The

 

qualified forest taxable value affidavit under this subdivision

 

shall be in a form prescribed by the department of agriculture and

 

rural development. The qualified forest taxable value affidavit

 

shall include a legal description of the qualified forest property,

 

the name of the new property owner, the year the transfer of the

 

property occurred, a statement indicating that the property owner

 

is attesting that the property for which the exemption is claimed

 

is qualified forest property and will be managed according to the

approved forest management plan, and any other information

 

pertinent to the parcel and the property owner. The property owner

 

shall provide a copy of the qualified forest taxable value

 

affidavit to the department. The department shall provide 1 copy of

 

the qualified forest taxable value affidavit to the local tax

 

collecting unit, 1 copy to the conservation district, and 1 copy to

 

the department of treasury. These copies may be sent

 

electronically. The exception to the recognition of a transfer of

 

ownership, as herein stated, extends to the land only of the

 

qualified forest property. If qualified forest property is improved

 

by buildings, structures, or land improvements, then those

 

improvements shall be recognized as a transfer of ownership, in

 

accordance with the provisions of section 7jj[1]. An owner of

 

qualified forest property shall inform a prospective buyer of that

 

qualified forest property that the qualified forest property is

 

subject to the recapture tax provided in the qualified forest

 

property recapture tax act, 2006 PA 379, MCL 211.1031 to 211.1036,

 

if the qualified forest property is converted by a change in use,

 

as that term is defined in section 2 of the qualified forest

 

property recapture tax act, 2006 PA 379, MCL 211.1032. If property

 

ceases to be qualified forest property at any time after being

 

transferred, all of the following shall occur:

 

     (i) The taxable value of that property shall be adjusted under

 

subsection (3) as of the December 31 in the year that the property

 

ceases to be qualified forest property, except to the extent that

 

the transfer of the qualified forest property would not have been

 

considered a transfer of ownership under this subsection.

     (ii) Except as otherwise provided in subparagraph (iii), the

 

property is subject to the recapture tax provided for under the

 

qualified forest property recapture tax act, 2006 PA 379, MCL

 

211.1031 to 211.1036.

 

     (iii) Beginning June 1, 2013 and ending November 30, 2013,

 

owners of property enrolled as qualified forest property before

 

January 1, 2013 may execute a new qualified forest taxable value

 

affidavit with the department of agriculture and rural development.

 

If a landowner elects to execute a qualified forest taxable value

 

affidavit, that owner is not required to pay the $50.00 fee

 

required under section 7jj[1](2). If a landowner elects not to

 

execute a qualified forest taxable value affidavit, the existing

 

affidavit shall be rescinded, without subjecting the property to

 

the recapture tax provided for under the qualified forest property

 

recapture tax act, 2006 PA 379, MCL 211.1031 to 211.1036, and the

 

taxable value of that property shall be adjusted under subsection

 

(3).

 

     (p) (q) Beginning on December 8, 2006, a transfer of land, but

 

not buildings or structures located on the land, which meets 1 or

 

more of the following requirements:

 

     (i) The land is subject to a conservation easement under

 

subpart 11 of part 21 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in

 

this subparagraph, "conservation easement" means that term as

 

defined in section 2140 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2140.

 

     (ii) A transfer of ownership of the land or a transfer of an

interest in the land is eligible for a deduction as a qualified

 

conservation contribution under section 170(h) of the internal

 

revenue code, 26 USC 170.

 

     (q) (r) A transfer of real property or other ownership

 

interests resulting from a consolidation or merger of a domestic

 

nonprofit corporation that is a boy or girl scout or camp fire

 

girls organization, a 4-H club or foundation, a young men's

 

Christian association, or a young women's Christian association and

 

at least 50% of the members of that organization or association are

 

residents of this state.

 

     (r) (s) A change to the assessment roll or tax roll resulting

 

from the application of section 16a of 1897 PA 230, MCL 455.16a.

 

     (s) (t) Beginning December 31, 2013 through December 30, 2014,

 

a transfer of residential real property if the transferee is

 

related to the transferor by blood or affinity to the first degree

 

and the use of for so long as the residential real property

 

classification under section 34c does not change following the

 

transfer.

 

     (t) (u) Beginning December 31, 2014, a transfer of residential

 

real property if the transferee is the transferor's or the

 

transferor's spouse's mother, father, brother, sister, son,

 

daughter, adopted son, adopted daughter, grandson, or

 

granddaughter, and or is 1 or more of these individuals, or is a

 

trust and the sole present beneficiary or beneficiaries are 1 or

 

more of these individuals, for so long as the residential real

 

property is not used for any commercial purpose classification

 

under section 34c does not change following the conveyance. Upon

request by the department of treasury or the assessor, the a

 

transferee shall furnish proof within 30 days that the transferee

 

meets the requirements of this subdivision. If a transferee fails

 

to comply with a request by the department of treasury or assessor

 

under this subdivision, that transferee is subject to a fine of

 

$200.00.

 

     (u) (v) Beginning December 31, 2014, for residential real

 

property, a conveyance from a trust if the person to whom the

 

residential real property is conveyed is the settlor's or the

 

settlor's spouse's mother, father, brother, sister, son, daughter,

 

adopted son, adopted daughter, grandson, or granddaughter and of a

 

sole present beneficiary or of the spouse of a sole present

 

beneficiary, or is 1 or more of these individuals, or is a trust

 

and the sole present beneficiary or beneficiaries are 1 or more of

 

these individuals, for so long as the residential real property is

 

not used for any commercial purpose classification under section

 

34c does not change following the conveyance. Upon request by the

 

department of treasury or the assessor, the sole present

 

beneficiary or beneficiaries a transferee shall furnish proof

 

within 30 days that the sole present beneficiary or beneficiaries

 

meet transferee meets the requirements of this subdivision. If a

 

present beneficiary transferee fails to comply with a request by

 

the department of treasury or assessor under this subdivision, that

 

present beneficiary transferee is subject to a fine of $200.00.

 

     (v) (w) Beginning on March 31, 2015, a conveyance of land by

 

distribution under a will or trust or by intestate succession, but

 

not buildings or structures located on the land, which meets 1 or

more of the following requirements:

 

     (i) The land is made subject to a conservation easement under

 

subpart 11 of part 21 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2140 to 324.2144, prior to the

 

conveyance by distribution under a will or trust or by intestate

 

succession. As used in this subparagraph, "conservation easement"

 

means that term as defined in section 2140 of the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.2140.

 

     (ii) The land or an interest in the land is made eligible for

 

a deduction as a qualified conservation contribution under section

 

170(h) of the internal revenue code, 26 USC 170, prior to the

 

conveyance by distribution under a will or trust or by intestate

 

succession.

 

     (w) (x) A conveyance of property under section 2120a(6) of the

 

natural resources and environmental protection act, 1994 PA 451,

 

MCL 324.2120a.

 

     (x) Beginning December 31, 2016, the transfer of an ownership

 

interest in real property to or from a corporation, partnership,

 

sole proprietorship, limited liability company, limited liability

 

partnership, or other legal entity if the ownership of the entity

 

after the transfer is identical to the ownership of the real

 

property before the transfer or if the ownership of the real

 

property after the transfer is identical to the ownership of the

 

entity before the transfer. As used in this subdivision,

 

"identical" means the same both in the identity of the owner or

 

owners and the percentage owned if owned by more than 1 person.

 

     (8) If all of the following conditions are satisfied, the

local tax collecting unit shall revise the taxable value of

 

qualified agricultural property taxable on the tax roll in the

 

possession of that local tax collecting unit to the taxable value

 

that qualified agricultural property would have had if there had

 

been no transfer of ownership of that qualified agricultural

 

property since December 31, 1999 and there had been no adjustment

 

of that qualified agricultural property's taxable value under

 

subsection (3) since December 31, 1999:

 

     (a) The qualified agricultural property was qualified

 

agricultural property for taxes levied in 1999 and each year after

 

1999.

 

     (b) The owner of the qualified agricultural property files an

 

affidavit with the assessor of the local tax collecting unit under

 

subsection (7)(o).(7)(n).

 

     (9) If the taxable value of qualified agricultural property is

 

adjusted under subsection (8), the owner of that qualified

 

agricultural property is not entitled to a refund for any property

 

taxes collected under this act on that qualified agricultural

 

property before the adjustment under subsection (8).

 

     (10) The register of deeds of the county where deeds or other

 

title documents are recorded shall notify the assessing officer of

 

the appropriate local taxing unit not less than once each month of

 

any recorded transaction involving the ownership of property and

 

shall make any recorded deeds or other title documents available to

 

that county's tax or equalization department. Unless notification

 

is provided under subsection (6), the buyer, grantee, or other

 

transferee of the property shall notify the appropriate assessing

office in the local unit of government in which the property is

 

located of the transfer of ownership of the property within 45 days

 

of the transfer of ownership, on a form prescribed by the state tax

 

commission that states the parties to the transfer, the date of the

 

transfer, the actual consideration for the transfer, and the

 

property's parcel identification number or legal description. Forms

 

filed in the assessing office of a local unit of government under

 

this subsection shall be made available to the county tax or

 

equalization department for the county in which that local unit of

 

government is located. This subsection does not apply to personal

 

property except buildings described in section 14(6) and personal

 

property described in section 8(h), (i), and (j).

 

     (11) As used in this section:

 

     (a) "Additions" means that term as defined in section 34d.

 

     (b) "Beneficial use" means the right to possession, use, and

 

enjoyment of property, limited only by encumbrances, easements, and

 

restrictions of record.

 

     (c) "Commercial purpose" means used in connection with any

 

business or other undertaking intended for profit, but does not

 

include the rental of residential real property for a period of

 

less than 15 days in a calendar year.

 

     (c) (d) "Inflation rate" means that term as defined in section

 

34d.

 

     (d) (e) "Losses" means that term as defined in section 34d.

 

     (e) (f) "Qualified agricultural property" means that term as

 

defined in section 7dd.

 

     (f) (g) "Qualified forest property" means that term as defined

in section 7jj[1].

 

     (g) (h) "Residential real property" means real property

 

classified as residential real property under section 34c.

 

     (h) "Transferor" means a person that makes a transfer and

 

includes, but is not limited to, the settlor of a trust, or an

 

individual or entity for whom a transfer is made by a

 

representative.

 

     Enacting section 1. Section 27a(6)(h)(ii) and (iii) and (7)(x)

 

of the general property tax act, 1893 PA 206, MCL 211.27a, as added

 

by this amendatory act, is retroactive and is effective for taxes

 

levied after December 31, 2016.

 

     Enacting section 2. Section 27a(7)(c) of the general property

 

tax act, 1893 PA 206, MCL 211.27a, as amended by this amendatory

 

act, is retroactive and is effective for taxes levied after

 

December 31, 2016.