Bill Text: MI SB0810 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: State agencies (existing); natural resources; powers and duties of the department of environmental quality under general property tax act; transfer to the department of natural resources. Amends secs. 9, 34d, 78g & 78m of 1893 PA 206 (MCL 211.9 et seq.). TIE BAR WITH: SB 0807'09
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2010-12-15 - Returned To Senate [SB0810 Detail]
Download: Michigan-2009-SB0810-Engrossed.html
SB-0810, As Passed House, December 15, 2010
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 810
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 9, 34d, and 78g (MCL 211.9, 211.34d, and
211.78g), section 9 as amended by 2008 PA 337, section 34d as
amended by 2007 PA 31, and section 78g as amended by 2003 PA 263,
and by adding sections 7oo and 9n.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7oo. An eligible energy conversion device for which
installation is completed after the effective date of the
amendatory act that added this section and before January 1, 2014
or, in the case of a wind energy conversion device installed on
real property classified as residential real property under section
34c, after December 31, 2007 and before January 1, 2014 is exempt
from the collection of taxes under this act. As used in this
section:
(a) "Biomass" means that term as defined in section 3 of the
clean, renewable, and efficient energy act, 2008 PA 295, MCL
460.1003.
(b) "Eligible energy conversion device" means a small-scale
solar, wind, geothermal, biomass, or water energy conversion device
which meets all standards for a solar, wind, geothermal, or water
energy conversion device prescribed by the Michigan next energy
authority or a small-scale biomass conversion device that meets the
standards set forth in chapter 85 of the clean air act, 42 USC 7401
to 7671q, and is certified by the United States environmental
protection agency.
(c) "Michigan next energy authority" means the Michigan next
energy authority created in section 3 of the Michigan next energy
authority act, 2002 PA 593, MCL 207.823.
(d) "Small-scale" means having a nameplate generating capacity
of not more than 150 kilowatts.
(e) "Solar, wind, geothermal, biomass, or water energy
conversion device" means a mechanism or series of mechanisms
designed primarily to collect, convert, transfer, or store for
future use solar, wind, geothermal, biomass, or water energy for
the purposes of heating, cooling, or electric supply, but not those
parts of a heating, cooling, or electric supply system that would
be required regardless of the energy source being utilized.
However, a water energy conversion device includes only those
devices that utilize groundwater heat pumps or low-head hydro-
energy conversion systems. Low-head hydro-energy conversion systems
do not include public utility property.
Sec. 9. (1) The following personal property, and real property
described in subdivision (j)(i), is exempt from taxation:
(a) The personal property of charitable, educational, and
scientific institutions incorporated under the laws of this state.
This exemption does not apply to secret or fraternal societies, but
the personal property of all charitable homes of secret or
fraternal societies and nonprofit corporations that own and operate
facilities for the aged and chronically ill in which the net income
from the operation of the nonprofit corporations or secret or
fraternal societies does not inure to the benefit of a person other
than the residents is exempt.
(b) The property of all library associations, circulating
libraries, libraries of reference, and reading rooms owned or
supported by the public and not used for gain.
(c) The property of posts of the grand army of the republic,
sons of veterans' unions, and of the women's relief corps connected
with them, of young men's Christian associations, women's Christian
temperance union associations, young people's Christian unions, a
boy or girl scout or camp fire girls organization, 4-H clubs, and
other similar associations.
(d) Pensions receivable from the United States.
(e) The property of Indians who are not citizens.
(f) The personal property owned and used by a householder such
as customary furniture, fixtures, provisions, fuel, and other
similar equipment, wearing apparel including personal jewelry,
family pictures, school books, library books of reference, and
allied items. Personal property is not exempt under this
subdivision if it is used to produce income, if it is held for
speculative investment, or if it constitutes an inventory of goods
for sale in the regular course of trade.
(g) Household furnishings, provisions, and fuel of not more
than $5,000.00 in taxable value, of each social or professional
fraternity, sorority, and student cooperative house recognized by
the educational institution at which it is located.
(h) The working tools of a mechanic of not more than $500.00
in taxable value. "Mechanic", as used in this subdivision, means a
person skilled in a trade pertaining to a craft or in the
construction or repair of machinery if the person's employment by
others is dependent on his or her furnishing the tools.
(i) Fire engines and other implements used in extinguishing
fires owned or used by an organized or independent fire company.
(j) Property actually used in agricultural operations and farm
implements held for sale or resale by retail servicing dealers for
use in agricultural production. As used in this subdivision,
"agricultural operations" means farming in all its branches,
including cultivation of the soil, growing and harvesting of an
agricultural, horticultural, or floricultural commodity, dairying,
raising of livestock, bees, fur-bearing animals, or poultry, turf
and tree farming, raising and harvesting of fish, collecting,
evaporating, and preparing maple syrup if the owner of the property
has $25,000.00 or less in annual gross wholesale sales, and any
practices performed by a farmer or on a farm as an incident to, or
in conjunction with, farming operations, but excluding retail sales
and food processing operations. Property used in agricultural
operations includes all of the following:
(i) A methane digester and a methane digester electric
generating system if the person claiming the exemption complies
with all of the following:
(A) After the construction of the methane digester or the
methane digester electric generating system is completed, the
person claiming the exemption submits to the local tax collecting
unit an application for the exemption and a copy of certification
from the department of agriculture that it has verified that the
farm operation on which the methane digester or methane digester
electric generating system is located is in compliance with the
appropriate system of the Michigan agriculture environmental
assurance program in the year immediately preceding the year in
which the affidavit is submitted. Three years after an application
for exemption is approved and every 3 years thereafter, the person
claiming the exemption shall submit to the local tax collecting
unit an affidavit attesting that the department of agriculture has
verified that the farm operation on which the methane digester or
methane digester electric generating system is located is in
compliance with the appropriate system of the Michigan agriculture
environmental assurance program. The application for the exemption
under this subparagraph shall be in a form prescribed by the
department of treasury and shall be provided to the person claiming
the exemption by the local tax collecting unit.
(B) When the application is submitted to the local tax
collecting unit, the person claiming the exemption also submits
certification
provided by the department of environmental quality
natural resources and environment that he or she is not currently
being investigated for a violation of part 31 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.3101 to 324.3133, that within a 3-year period immediately
preceding the date the application is submitted to the local tax
collecting unit, he or she has not been found guilty of a criminal
violation under part 31 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.3101 to 324.3133, and that
within a 1-year period immediately preceding the date the
application is submitted to the local tax collecting unit, he or
she has not been found responsible for a civil violation that
resulted in a civil fine of $10,000.00 or more under part 31 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.3101 to 324.3133.
(C) The person claiming an exemption cooperates by allowing
access for not more than 2 universities to collect information
regarding the effectiveness of the methane digester and the methane
digester electric generating system in generating electricity and
processing animal waste and production area waste. Information
collected under this sub-subparagraph shall not be provided to the
public in a manner that would identify the owner of the methane
digester or the methane digester electric generating system or the
farm operation on which the methane digester or the methane
digester electric generating system is located. The identity of the
owner of the methane digester or the methane digester electric
generating system and the identity of the owner and location of the
farm operation on which the methane digester or the methane
digester electric generating system is located are exempt from
disclosure under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246. As used in this sub-subparagraph, "university"
means a public 4-year institution of higher education created under
article VIII of the state constitution of 1963.
(D) The person claiming the exemption ensures that the methane
digester and methane digester electric generating system are
operated under the specific supervision and control of persons
certified by the department of agriculture as properly qualified to
operate the methane digester, methane digester electric generating
system, and related waste treatment and control facilities. The
department of agriculture shall consult with the department of
environmental
quality natural resources and
environment and the
Michigan state university cooperative extension service in
developing the operator certification program.
(ii) A biomass gasification system. As used in this
subparagraph, "biomass gasification system" means apparatus and
equipment that thermally decomposes agricultural, food, or animal
waste at high temperatures and in an oxygen-free or a controlled
oxygen-restricted environment into a gaseous fuel and the equipment
used to generate electricity or heat from the gaseous fuel or store
the gaseous fuel for future generation of electricity or heat.
(iii) A thermal depolymerization system. As used in this
subparagraph, "thermal depolymerization system" means apparatus and
equipment that use heat to break down natural and synthetic
polymers and that can accept only organic waste.
(iv) Machinery that is capable of simultaneously harvesting
grain or other crops and biomass and machinery used for the purpose
of harvesting biomass. As used in this subparagraph, "biomass"
means crop residue used to produce energy or agricultural crops
grown specifically for the production of energy.
(v) Machinery used to prepare the crop for market operated
incidental to a farming operation that does not substantially alter
the form, shape, or substance of the crop and is limited to
cleaning, cooling, washing, pitting, grading, sizing, sorting,
drying, bagging, boxing, crating, and handling if not less than 33%
of the volume of the crops processed in the year ending on the
applicable tax day or in at least 3 of the immediately preceding 5
years were grown by the farmer in Michigan who is the owner or user
of the crop processing machinery.
(k) Personal property of not more than $500.00 in taxable
value used by a householder in the operation of a business in the
householder's dwelling or at 1 other location in the city,
township, or village in which the householder resides.
(l) The products, materials, or goods processed or otherwise
and in whatever form, but expressly excepting alcoholic beverages,
located in a public warehouse, United States customs port of entry
bonded warehouse, dock, or port facility on December 31 of each
year, if those products, materials, or goods are designated as in
transit to destinations outside this state pursuant to the
published tariffs of a railroad or common carrier by filing the
freight bill covering the products, materials, or goods with the
agency designated by the tariffs, entitling the shipper to
transportation rate privileges. Products in a United States customs
port of entry bonded warehouse that arrived from another state or a
foreign country, whether awaiting shipment to another state or to a
final destination within this state, are considered to be in
transit and temporarily at rest, and not subject to the collection
of taxes under this act. To obtain an exemption for products,
materials, or goods under this subdivision, the owner shall file a
sworn statement with, and in the form required by, the assessing
officer of the tax district in which the warehouse, dock, or port
facility is located, at a time between the tax day, December 31,
and before the assessing officer closes the assessment rolls
describing the products, materials, or goods, and reporting their
cost and value as of December 31 of each year. The status of
persons and products, materials, or goods for which an exemption is
requested is determined as of December 31, which is the tax day.
Any property located in a public warehouse, dock, or port facility
on December 31 of each year that is exempt from taxation under this
subdivision but that is not shipped outside this state pursuant to
the particular tariff under which the transportation rate privilege
was established shall be assessed upon the immediately succeeding
or a subsequent assessment roll by the assessing officer and taxed
at the same rate of taxation as other taxable property for the year
or years for which the property was exempted to the owner at the
time of the omission unless the owner or person entitled to
possession of the products, materials, or goods is a resident of,
or authorized to do business in, this state and files with the
assessing officer, with whom statements of taxable property are
required to be filed, a statement under oath that the products,
materials, or goods are not for sale or use in this state and will
be shipped to a point or points outside this state. If a person,
firm, or corporation claims exemption by filing a sworn statement,
the person, firm, or corporation shall append to the statement of
taxable property required to be filed in the immediately succeeding
year or, if a statement of taxable property is not filed for the
immediately succeeding year, to a sworn statement filed on a form
required by the assessing officer, a complete list of the property
for which the exemption was claimed with a statement of the manner
of shipment and of the point or points to which the products,
materials, or goods were shipped from the public warehouse, dock,
or port facility. The assessing officer shall assess the products,
materials, or goods not shipped to a point or points outside this
state upon the immediately succeeding assessment roll or on a
subsequent assessment roll and the products, materials, or goods
shall be taxed at the same rate of taxation as other taxable
property for the year or years for which the property was exempted
to the owner at the time of the omission. The records, accounts,
and books of warehouses, docks, or port facilities, individuals,
partnerships, corporations, owners, or those in possession of
tangible personal property shall be open to and available for
inspection, examination, or auditing by assessing officers. A
warehouse, dock, port facility, individual, partnership,
corporation, owner, or person in possession of tangible personal
property shall report within 90 days after shipment of products,
materials, or goods in transit, for which an exemption under this
section was claimed or granted, the destination of shipments or
parts of shipments and the cost value of those shipments or parts
of shipments to the assessing officer. A warehouse, dock, port
facility, individual, partnership, corporation, or owner is subject
to a fine of $100.00 for each failure to report the destination and
cost value of shipments or parts of shipments as required in this
subdivision. A person, firm, individual, partnership, corporation,
or owner failing to report products, materials, or goods located in
a warehouse, dock, or port facility to the assessing officer is
subject to a fine of $100.00 and a penalty of 50% of the final
amount of taxes found to be assessable for the year on property not
reported, the assessable taxes and penalty to be spread on a
subsequent assessment roll in the same manner as general taxes on
personal property. For the purpose of this subdivision, a public
warehouse, dock, or port facility means a warehouse, dock, or port
facility owned or operated by a person, firm, or corporation
engaged in the business of storing products, materials, or goods
for hire for profit who issues a schedule of rates for storage of
the products, materials, or goods and who issues warehouse receipts
pursuant to 1909 PA 303, MCL 443.50 to 443.55. A United States
customs port of entry bonded warehouse means a customs warehouse
within a classification designated by 19 CFR 19.1 and that is
located in a port of entry, as defined by 19 CFR 101.1. A portion
of a public warehouse, United States customs port of entry bonded
warehouse, dock, or port facility leased to a tenant or a portion
of any premises owned or leased or operated by a consignor or
consignee or an affiliate or subsidiary of the consignor or
consignee is not a public warehouse, dock, or port facility.
(m) Personal property owned by a bank or trust company
organized under the laws of this state, a national banking
association, or an incorporated bank holding company as defined in
section 1841 of the bank holding company act of 1956, 12 USC 1841,
that controls a bank, national banking association, trust company,
or industrial bank subsidiary located in this state. Buildings
owned by a state or national bank, trust company, or incorporated
bank holding company and situated upon real property that the state
or national bank, trust company, or incorporated bank holding
company is not the owner of the fee are considered real property
and are not exempt under this section. Personal property owned by a
state or national bank, trust company, or incorporated bank holding
company that is leased, loaned, or otherwise made available to and
used by a private individual, association, or corporation in
connection with a business conducted for profit is not exempt under
this section.
(n) Farm products, processed or otherwise, the ultimate use of
which is for human or animal consumption as food, except wine,
beer, and other alcoholic beverages regularly placed in storage in
a public warehouse, dock, or port facility while in storage are
considered in transit and only temporarily at rest and are not
subject to the collection of taxes under this act. The assessing
officer is the determining authority as to what constitutes, is
defined as, or classified as, farm products as used in this
subdivision. The records, accounts, and books of warehouses, docks,
or port facilities, individuals, partnerships, corporations,
owners, or those in possession of farm products shall be open to
and available for inspection, examination, or auditing by assessing
officers.
(o) Sugar, in solid or liquid form, produced from sugar beets,
dried beet pulp, and beet molasses if owned or held by processors.
(p) The personal property of a parent cooperative preschool.
As used in this subdivision and section 7z, "parent cooperative
preschool" means a nonprofit, nondiscriminatory educational
institution maintained as a community service and administered by
parents of children currently enrolled in the preschool, that
provides an educational and developmental program for children
younger than compulsory school age, that provides an educational
program for parents, including active participation with children
in preschool activities, that is directed by qualified preschool
personnel, and that is licensed under 1973 PA 116, MCL 722.111 to
722.128.
(q) All equipment used exclusively in wood harvesting, but not
including portable or stationary sawmills or other equipment used
in secondary processing operations. As used in this subdivision,
"wood harvesting" means clearing land for forest management
purposes, planting trees, all forms of cutting or chipping trees,
and loading trees on trucks for removal from the harvest area.
(r) Liquefied petroleum gas tanks located on residential or
agricultural property used to store liquefied petroleum gas for
residential or agricultural property use.
(s) Water conditioning systems used for a residential
dwelling.
Senate Bill No. 810 (H-7) as amended December 15, 2010
(t) For taxes levied after December 31, 2000, aircraft
excepted from the registration provisions of the aeronautics code
of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208, and
all other aircraft operating under the provisions of a certificate
issued under 14 CFR part 121, and all spare parts for such
aircraft.
(2) As used in this section:
(a) "Biogas" means a mixture of gases composed primarily of
methane and carbon dioxide.
(b) "Methane digester" means a system designed to facilitate
the production, recovery, and storage of biogas from the anaerobic
microbial digestion of animal or food waste.
(c) "Methane digester electric generating system" means a
methane digester and the apparatus and equipment used to generate
electricity or heat from biogas or to store biogas for the future
generation of electricity or heat.
[Sec. 9n. For taxes levied after December 31, 2010, personal
property used to create renewable energy from either of the following
sources is exempt from the collection of taxes under this act:
(a) Wind energy.
(b) Solar and solar thermal energy.
]
Sec. 34d. (1) As used in this section or section 27a, or
section 3 or 31 of article IX of the state constitution of 1963:
(a) For taxes levied before 1995, "additions" means all
increases in value caused by new construction or a physical
addition of equipment or furnishings, and the value of property
that was exempt from taxes or not included on the assessment unit's
immediately preceding year's assessment roll.
(b) For taxes levied after 1994, "additions" means, except as
provided in subdivision (c), all of the following:
(i) Omitted real property. As used in this subparagraph,
"omitted real property" means previously existing tangible real
property not included in the assessment. Omitted real property
shall not increase taxable value as an addition unless the
assessing jurisdiction has a property record card or other
documentation showing that the omitted real property was not
previously included in the assessment. The assessing jurisdiction
has the burden of proof in establishing whether the omitted real
property is included in the assessment. Omitted real property for
the current and the 2 immediately preceding years, discovered after
the assessment roll has been completed, shall be added to the tax
roll pursuant to the procedures established in section 154. For
purposes of determining the taxable value of real property under
section 27a, the value of omitted real property is based on the
value and the ratio of taxable value to true cash value the omitted
real property would have had if the property had not been omitted.
(ii) Omitted personal property. As used in this subparagraph,
"omitted personal property" means previously existing tangible
personal property not included in the assessment. Omitted personal
property shall be added to the tax roll pursuant to section 154.
(iii) New construction. As used in this subparagraph, "new
construction" means property not in existence on the immediately
preceding tax day and not replacement construction. New
construction includes the physical addition of equipment or
furnishings, subject to the provisions set forth in section
27(2)(a) to (o). For purposes of determining the taxable value of
property under section 27a, the value of new construction is the
true cash value of the new construction multiplied by 0.50.
(iv) Previously exempt property. As used in this subparagraph,
"previously exempt property" means property that was exempt from ad
valorem taxation under this act on the immediately preceding tax
day but is subject to ad valorem taxation on the current tax day
under this act. For purposes of determining the taxable value of
real property under section 27a:
(A) The value of property previously exempt under section 7u
is the taxable value the entire parcel of property would have had
if that property had not been exempt, minus the product of the
entire parcel's taxable value in the immediately preceding year and
the lesser of 1.05 or the inflation rate.
(B) The taxable value of property that is a facility as that
term is defined in section 2 of 1974 PA 198, MCL 207.552, that was
previously exempt under section 7k is the taxable value that
property would have had under this act if it had not been exempt.
(C) The value of property previously exempt under any other
section of law is the true cash value of the previously exempt
property multiplied by 0.50.
(v) Replacement construction. As used in this subparagraph,
"replacement construction" means construction that replaced
property damaged or destroyed by accident or act of God and that
occurred after the immediately preceding tax day to the extent the
construction's true cash value does not exceed the true cash value
of property that was damaged or destroyed by accident or act of God
in the immediately preceding 3 years. For purposes of determining
the taxable value of property under section 27a, the value of the
replacement construction is the true cash value of the replacement
construction multiplied by a fraction the numerator of which is the
taxable value of the property to which the construction was added
in the immediately preceding year and the denominator of which is
the true cash value of the property to which the construction was
added in the immediately preceding year, and then multiplied by the
lesser of 1.05 or the inflation rate.
(vi) An increase in taxable value attributable to the complete
or partial remediation of environmental contamination existing on
the
immediately preceding tax day. The department of environmental
quality
natural resources and
environment shall determine the
degree of remediation based on information available in existing
department
of environmental quality natural
resources and
environment records or information made available to the department
of
environmental quality natural
resources and environment if the
appropriate assessing officer for a local tax collecting unit
requests that determination. The increase in taxable value
attributable to the remediation is the increase in true cash value
attributable to the remediation multiplied by a fraction the
numerator of which is the taxable value of the property had it not
been contaminated and the denominator of which is the true cash
value of the property had it not been contaminated.
(vii) An increase in the value attributable to the property's
occupancy rate if either a loss, as that term is defined in this
section, had been previously allowed because of a decrease in the
property's occupancy rate or if the value of new construction was
reduced because of a below-market occupancy rate. For purposes of
determining the taxable value of property under section 27a, the
value of an addition for the increased occupancy rate is the
product of the increase in the true cash value of the property
attributable to the increased occupancy rate multiplied by a
fraction the numerator of which is the taxable value of the
property in the immediately preceding year and the denominator of
which is the true cash value of the property in the immediately
preceding year, and then multiplied by the lesser of 1.05 or the
inflation rate.
(viii) Public services. As used in this subparagraph, "public
services" means water service, sewer service, a primary access
road, natural gas service, electrical service, telephone service,
sidewalks, or street lighting. For purposes of determining the
taxable value of real property under section 27a, the value of
public services is the amount of increase in true cash value of the
property attributable to the available public services multiplied
by 0.50 and shall be added in the calendar year following the
calendar year when those public services are initially available.
(c) For taxes levied after 1994, additions do not include
increased value attributable to any of the following:
(i) Platting, splits, or combinations of property.
(ii) A change in the zoning of property.
(iii) For the purposes of the calculation of the millage
reduction fraction under subsection (7) only, increased taxable
value under section 27a(3) after a transfer of ownership of
property.
(d) "Assessed valuation of property as finally equalized"
means taxable value under section 27a.
(e) "Financial officer" means the officer responsible for
preparing the budget of a unit of local government.
(f) "General price level" means the annual average of the 12
monthly values for the United States consumer price index for all
urban consumers as defined and officially reported by the United
States department of labor, bureau of labor statistics.
(g) For taxes levied before 1995, "losses" means a decrease in
value caused by the removal or destruction of real or personal
property and the value of property taxed in the immediately
preceding year that has been exempted or removed from the
assessment unit's assessment roll.
(h) For taxes levied after 1994, "losses" means, except as
provided in subdivision (i), all of the following:
(i) Property that has been destroyed or removed. For purposes
of determining the taxable value of property under section 27a, the
value of property destroyed or removed is the product of the true
cash value of that property multiplied by a fraction the numerator
of which is the taxable value of that property in the immediately
preceding year and the denominator of which is the true cash value
of that property in the immediately preceding year.
(ii) Property that was subject to ad valorem taxation under
this act in the immediately preceding year that is now exempt from
ad valorem taxation under this act. For purposes of determining the
taxable value of property under section 27a, the value of property
exempted from ad valorem taxation under this act is the amount
exempted.
(iii) An adjustment in value, if any, because of a decrease in
the property's occupancy rate, to the extent provided by law. For
purposes of determining the taxable value of real property under
section 27a, the value of a loss for a decrease in the property's
occupancy rate is the product of the decrease in the true cash
value of the property attributable to the decreased occupancy rate
multiplied by a fraction the numerator of which is the taxable
value of the property in the immediately preceding year and the
denominator of which is the true cash value of the property in the
immediately preceding year.
(iv) A decrease in taxable value attributable to environmental
contamination existing on the immediately preceding tax day. The
department
of environmental quality natural
resources and
environment shall determine the degree to which environmental
contamination limits the use of property based on information
available
in existing department of environmental quality natural
resources and environment records or information made available to
the
department of environmental quality natural resources and
environment if the appropriate assessing officer for a local tax
collecting unit requests that determination. The department of
environmental
quality's natural resources and
environment's
determination of the degree to which environmental contamination
limits the use of property shall be based on the criteria
established for the categories set forth in section 20120a(1) of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20120a. The decrease in taxable value attributable to
the contamination is the decrease in true cash value attributable
to the contamination multiplied by a fraction the numerator of
which is the taxable value of the property had it not been
contaminated and the denominator of which is the true cash value of
the property had it not been contaminated.
(i) For taxes levied after 1994, losses do not include
decreased value attributable to either of the following:
(i) Platting, splits, or combinations of property.
(ii) A change in the zoning of property.
(j) "New construction and improvements" means additions less
losses.
(k) "Current year" means the year for which the millage
limitation is being calculated.
(l) "Inflation rate" means the ratio of the general price level
for the state fiscal year ending in the calendar year immediately
preceding the current year divided by the general price level for
the state fiscal year ending in the calendar year before the year
immediately preceding the current year.
(2) On or before the first Monday in May of each year, the
assessing officer of each township or city shall tabulate the
tentative taxable value as approved by the local board of review
and as modified by county equalization for each classification of
property that is separately equalized for each unit of local
government and provide the tabulated tentative taxable values to
the county equalization director. The tabulation by the assessing
officer shall contain additions and losses for each classification
of property that is separately equalized for each unit of local
government or part of a unit of local government in the township or
city. If as a result of state equalization the taxable value of
property changes, the assessing officer of each township or city
shall revise the calculations required by this subsection on or
before the Friday following the fourth Monday in May. The county
equalization director shall compute these amounts and the current
and immediately preceding year's taxable values for each
classification of property that is separately equalized for each
unit of local government that levies taxes under this act within
the boundary of the county. The county equalization director shall
cooperate with equalization directors of neighboring counties, as
necessary, to make the computation for units of local government
located in more than 1 county. The county equalization director
shall calculate the millage reduction fraction for each unit of
local government in the county for the current year. The financial
officer for each taxing jurisdiction shall calculate the compounded
millage reduction fractions beginning in 1980 resulting from the
multiplication of successive millage reduction fractions and shall
recognize a local voter action to increase the compounded millage
reduction fraction to a maximum of 1 as a new beginning fraction.
Upon request of the superintendent of the intermediate school
district, the county equalization director shall transmit the
complete computations of the taxable values to the superintendent
of the intermediate school district within that county. At the
request of the presidents of community colleges, the county
equalization director shall transmit the complete computations of
the taxable values to the presidents of community colleges within
the county.
(3) On or before the first Monday in June of each year, the
county equalization director shall deliver the statement of the
computations signed by the county equalization director to the
county treasurer.
(4) On or before the second Monday in June of each year, the
treasurer of each county shall certify the immediately preceding
year's taxable values, the current year's taxable values, the
amount of additions and losses for the current year, and the
current year's millage reduction fraction for each unit of local
government that levies a property tax in the county.
(5) The financial officer of each unit of local government
shall make the computation of the tax rate using the data certified
by the county treasurer and the state tax commission. At the annual
session in October, the county board of commissioners shall not
authorize the levy of a tax unless the governing body of the taxing
jurisdiction has certified that the requested millage has been
reduced, if necessary, in compliance with section 31 of article IX
of the state constitution of 1963.
(6) The number of mills permitted to be levied in a tax year
is limited as provided in this section pursuant to section 31 of
article IX of the state constitution of 1963. A unit of local
government shall not levy a tax rate greater than the rate
determined by reducing its maximum rate or rates authorized by law
or charter by a millage reduction fraction as provided in this
section without voter approval.
(7) A millage reduction fraction shall be determined for each
year for each local unit of government. For ad valorem property
taxes that became a lien before January 1, 1983, the numerator of
the fraction shall be the total state equalized valuation for the
immediately preceding year multiplied by the inflation rate and the
denominator of the fraction shall be the total state equalized
valuation for the current year minus new construction and
improvements. For ad valorem property taxes that become a lien
after December 31, 1982 and through December 31, 1994, the
numerator of the fraction shall be the product of the difference
between the total state equalized valuation for the immediately
preceding year minus losses multiplied by the inflation rate and
the denominator of the fraction shall be the total state equalized
valuation for the current year minus additions. For ad valorem
property taxes that are levied after December 31, 1994, the
numerator of the fraction shall be the product of the difference
between the total taxable value for the immediately preceding year
minus losses multiplied by the inflation rate and the denominator
of the fraction shall be the total taxable value for the current
year minus additions. For each year after 1993, a millage reduction
fraction shall not exceed 1.
(8) The compounded millage reduction fraction shall be
calculated by multiplying the local unit's previous year's
compounded millage reduction fraction by the current year's millage
reduction fraction. The compounded millage reduction fraction for
the year shall be multiplied by the maximum millage rate authorized
by law or charter for the unit of local government for the year,
except as provided by subsection (9). A compounded millage
reduction fraction shall not exceed 1.
(9) The millage reduction shall be determined separately for
authorized millage approved by the voters. The limitation on
millage authorized by the voters on or before April 30 of a year
shall be calculated beginning with the millage reduction fraction
for that year. Millage authorized by the voters after April 30
shall not be subject to a millage reduction until the year
following the voter authorization which shall be calculated
beginning with the millage reduction fraction for the year
following the authorization. The first millage reduction fraction
used in calculating the limitation on millage approved by the
voters after January 1, 1979 shall not exceed 1.
(10) A millage reduction fraction shall be applied separately
to the aggregate maximum millage rate authorized by a charter and
to each maximum millage rate authorized by state law for a specific
purpose.
(11) A unit of local government may submit to the voters for
their approval the levy in that year of a tax rate in excess of the
limit set by this section. The ballot question shall ask the voters
to approve the levy of a specific number of mills in excess of the
limit. The provisions of this section do not allow the levy of a
millage rate in excess of the maximum rate authorized by law or
charter. If the authorization to levy millage expires after 1993
and a local governmental unit is asking voters to renew the
authorization to levy the millage, the ballot question shall ask
for renewed authorization for the number of expiring mills as
reduced by the millage reduction required by this section. If the
election occurs before June 1 of a year, the millage reduction is
based on the immediately preceding year's millage reduction
applicable to that millage. If the election occurs after May 31 of
a year, the millage reduction shall be based on that year's millage
reduction applicable to that millage had it not expired.
(12) A reduction or limitation under this section shall not be
applied to taxes imposed for the payment of principal and interest
on bonds or other evidence of indebtedness or for the payment of
assessments or contract obligations in anticipation of which bonds
are issued that were authorized before December 23, 1978, as
provided by section 4 of chapter I of former 1943 PA 202, or to
taxes imposed for the payment of principal and interest on bonds or
other evidence of indebtedness or for the payment of assessments or
contract obligations in anticipation of which bonds are issued that
are approved by the voters after December 22, 1978.
(13) If it is determined subsequent to the levy of a tax that
an incorrect millage reduction fraction has been applied, the
amount of additional tax revenue or the shortage of tax revenue
shall be deducted from or added to the next regular tax levy for
that unit of local government after the determination of the
authorized rate pursuant to this section.
(14) If as a result of an appeal of county equalization or
state equalization the taxable value of a unit of local government
changes, the millage reduction fraction for the year shall be
recalculated. The financial officer shall effectuate an addition or
reduction of tax revenue in the same manner as prescribed in
subsection (13).
(15) The fractions calculated pursuant to this section shall
be rounded to 4 decimal places, except that the inflation rate
shall be computed by the state tax commission and shall be rounded
to 3 decimal places. The state tax commission shall publish the
inflation rate before March 1 of each year.
(16) Beginning with taxes levied in 1994, the millage
reduction required by section 31 of article IX of the state
constitution of 1963 shall permanently reduce the maximum rate or
rates authorized by law or charter. The reduced maximum authorized
rate or rates for 1994 shall equal the product of the maximum rate
or rates authorized by law or charter before application of this
section multiplied by the compounded millage reduction applicable
to that millage in 1994 pursuant to subsections (8) to (12). The
reduced maximum authorized rate or rates for 1995 and each year
after 1995 shall equal the product of the immediately preceding
year's reduced maximum authorized rate or rates multiplied by the
current year's millage reduction fraction and shall be adjusted for
millage for which authorization has expired and new authorized
millage approved by the voters pursuant to subsections (8) to (12).
Sec. 78g. (1) Except as otherwise provided in this subsection,
on March 1 in each tax year, certified abandoned property and
property that is delinquent for taxes, interest, penalties, and
fees for the immediately preceding 12 months or more is forfeited
to the county treasurer for the total amount of those unpaid
delinquent taxes, interest, penalties, and fees. If property is
forfeited to a county treasurer under this subsection, the
foreclosing governmental unit does not have a right to possession
of the property until the April 1 immediately succeeding the entry
of a judgment foreclosing the property under section 78k or in a
contested case until 22 days after the entry of a judgment
foreclosing the property under section 78k. If property is
forfeited to a county treasurer under this subsection, the county
treasurer shall add a $175.00 fee to each parcel of property for
which those delinquent taxes, interest, penalties, and fees remain
unpaid. A county treasurer shall withhold a parcel of property from
forfeiture for any reason determined by the state tax commission.
The procedure for withholding a parcel of property from forfeiture
under this subsection shall be determined by the state tax
commission.
(2) Not more than 45 days after property is forfeited under
subsection (1), the county treasurer shall record with the county
register of deeds a certificate in a form determined by the
department of treasury for each parcel of property forfeited to the
county treasurer, specifying that the property has been forfeited
to the county treasurer and not redeemed and that absolute title to
the property shall vest in the county treasurer on the March 31
immediately succeeding the entry of a judgment foreclosing the
property under section 78k or in a contested case 21 days after the
entry of a judgment foreclosing the property under section 78k. If
a certificate of forfeiture is recorded in error, the county
treasurer shall record with the county register of deeds a
certificate of error in a form prescribed by the department of
treasury. A certificate submitted to the county register of deeds
for recording under this subsection need not be notarized and may
be authenticated by a digital signature of the county treasurer or
by other electronic means. If the county has elected under section
78 to have this state foreclose property under this act forfeited
to the county treasurer under this section, the county treasurer
shall immediately transmit to the department of treasury a copy of
each certificate recorded under this subsection. The county
treasurer shall upon collection transmit to the department of
treasury within 30 days the fee added to each parcel under
subsection (1), which may be paid from the county's delinquent tax
revolving fund and shall be deposited in the land reutilization
fund created under section 78n.
(3) Property forfeited to the county treasurer under
subsection (1) may be redeemed at any time on or before the March
31 immediately succeeding the entry of a judgment foreclosing the
property under section 78k or in a contested case within 21 days of
the entry of a judgment foreclosing the property under section 78k
upon payment to the county treasurer of all of the following:
(a) The total amount of unpaid delinquent taxes, interest,
penalties, and fees for which the property was forfeited.
(b) In addition to the interest calculated under sections
60a(1) or (2) and 78a(3), additional interest computed at a
noncompounded rate of 1/2% per month or fraction of a month on the
taxes that were originally returned as delinquent, computed from
the March 1 preceding the forfeiture.
(c) All recording fees and all fees for service of process or
notice.
(4) If property is redeemed by a person with a legal interest
as provided under subsection (3), any unpaid taxes not returned as
delinquent to the county treasurer under section 78a are not
extinguished.
(5) If property is redeemed by a person with a legal interest
as provided under subsection (3), the person redeeming does not
acquire a title or interest in the property greater than that
person would have had if the property had not been forfeited to the
county treasurer, but the person redeeming, other than the owner,
is entitled to a lien for the amount paid to redeem the property in
addition to any other lien or interest the person may have, which
shall be recorded within 30 days with the register of deeds by the
person entitled to the lien. The lien acquired shall have the same
priority as the existing lien, title, or interest.
(6) If property is redeemed as provided under subsection (3),
the county treasurer shall issue a redemption certificate in
quadruplicate in a form prescribed by the department of treasury.
One of the quadruplicate certificates shall be delivered to the
person making the redemption payment, 1 shall be filed in the
office of the county treasurer, 1 shall be recorded in the office
of the county register of deeds, and 1 shall be immediately
transmitted to the department of treasury if this state is the
foreclosing governmental unit. The county treasurer shall also make
a note of the redemption certificate in the tax record kept in his
or her office, with the name of the person making the final
redemption payment, the date of the payment, and the amount paid.
If the county treasurer accepts partial redemption payments, the
county treasurer shall include in the tax record kept in his or her
office the name of the person or persons making each partial
redemption payment, the date of each partial redemption payment,
the amount of each partial redemption payment, and the total amount
of all redemption payments. A certificate and the entry of the
certificate in the tax record by the county treasurer is prima
facie evidence of a redemption payment in the courts of this state.
A certificate submitted to the county register of deeds for
recording under this subsection need not be notarized and may be
authenticated by a digital signature of the county treasurer or by
other electronic means. If a redemption certificate is recorded in
error, the county treasurer shall record with the county register
of deeds a certificate of error in a form prescribed by the
department of treasury. A copy of a certificate of error recorded
under this section shall be immediately transmitted to the
department of treasury if this state is the foreclosing
governmental unit.
(7) If a foreclosing governmental unit has reason to believe
that a property forfeited under this section may be the site of
environmental contamination, the foreclosing governmental unit
shall
provide the department of environmental quality natural
resources and environment with any information in the possession of
the foreclosing governmental unit that suggests the property may be
the site of environmental contamination.
Enacting section 1. The amendatory changes to section 34c of
the general property tax act, 1893 PA 206, MCL 211.34c, in this
amendatory act are retroactive and are intended to clarify and
express the original intent of the legislature concerning the
classification of property as industrial personal property and
shall be retroactively applied to the classification of property
after December 30, 2007 and to the determination of exemptions and
credits after December 30, 2007 for property classified as
industrial personal property under this act and all of the
following:
(a) The Michigan business tax act, 2007 PA 36, MCL 208.1101 to
208.1601.
(b) The revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
(c) The state education tax act, 1993 PA 331, MCL 211.901 to
211.906.
(d) 1974 PA 198, MCL 207.551 to 207.572.
