Bill Text: MI SB1035 | 2017-2018 | 99th Legislature | Engrossed

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Bill Title: Property tax; exemptions; real property of a sportsmen club that dedicates its facilities for charitable purposes for a certain period of time each tax year; exempt. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-12-11 - Referred To Second Reading [SB1035 Detail]

Download: Michigan-2017-SB1035-Engrossed.html

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SB-1035, As Passed Senate, November 29, 2018

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1035

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 7o (MCL 211.7o), as amended by 2006 PA 681.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7o. (1) Real or personal property owned and occupied by a

 

nonprofit charitable institution while occupied by that nonprofit

 

charitable institution solely for the purposes for which that

 

nonprofit charitable institution was incorporated is exempt from

 

the collection of taxes under this act.

 

     (2) Real or personal property owned and occupied by a

 

charitable trust while occupied by that charitable trust solely for

 

the charitable purposes for which that charitable trust was

 

established is exempt from the collection of taxes under this act.

 

     (3) Real or personal property owned by a nonprofit charitable

institution or charitable trust that is leased, loaned, or

 

otherwise made available to another nonprofit charitable

 

institution or charitable trust or to a nonprofit hospital or a

 

nonprofit educational institution that is occupied by that

 

nonprofit charitable institution, charitable trust, nonprofit

 

hospital, or nonprofit educational institution solely for the

 

purposes for which that nonprofit charitable institution,

 

charitable trust, nonprofit hospital, or nonprofit educational

 

institution was organized or established and that would be exempt

 

from taxes collected under this act if the real or personal

 

property were occupied by the lessor nonprofit charitable

 

institution or charitable trust solely for the purposes for which

 

the lessor charitable nonprofit institution was organized or the

 

charitable trust was established is exempt from the collection of

 

taxes under this act.

 

     (4) For taxes levied after December 31, 1997, real or personal

 

property owned by a nonprofit charitable institution or charitable

 

trust that is leased, loaned, or otherwise made available to a

 

governmental entity is exempt from the collection of taxes under

 

this act if all of the following conditions are satisfied:

 

     (a) The real or personal property would be exempt from the

 

collection of taxes under this act under section 7m if the real or

 

personal property were owned or were being acquired pursuant to an

 

installment purchase agreement by the lessee governmental entity.

 

     (b) The real or personal property would be exempt from the

 

collection of taxes under this act if occupied by the lessor

 

nonprofit charitable institution or charitable trust solely for the

purposes for which the lessor charitable nonprofit institution was

 

organized or the charitable trust was established.

 

     (5) Real property owned by a qualified conservation

 

organization that is held for conservation purposes and that is

 

open to all residents of this state for educational or recreational

 

use, including, but not limited to, low-impact, nondestructive

 

activities such as hiking, bird watching, cross-country skiing, or

 

snowshoeing is exempt from the collection of taxes under this act.

 

As used in this subsection, "qualified conservation organization"

 

means a nonprofit charitable institution or a charitable trust that

 

meets all of the following conditions:

 

     (a) Is organized or established, as reflected in its articles

 

of incorporation or trust documents, for the purpose of acquiring,

 

maintaining, and protecting nature sanctuaries, nature preserves,

 

and natural areas in this state, that predominantly contain natural

 

habitat for fish, wildlife, and plants.

 

     (b) Is required under its articles of incorporation, bylaws,

 

or trust documents to hold in perpetuity property acquired for the

 

purposes described in subdivision (a) unless both of the following

 

conditions are satisfied:

 

     (i) That property is no longer suitable for the purposes

 

described in subdivision (a).

 

     (ii) The sale of the property is approved by a majority vote

 

of the members or trustees.

 

     (c) Its articles of incorporation, bylaws, or trust documents

 

prohibit any officer, shareholder, board member, employee, or

 

trustee or the family member of an officer, shareholder, board

member, employee, or trustee from benefiting from the sale of

 

property acquired for the purposes described in subdivision (a).

 

     (6) Real property owned and occupied by a qualified

 

sportsmen's club and used for the primary purpose for which that

 

qualified sportsmen's club is incorporated is exempt from the

 

collection of taxes under this act. As used in this subsection,

 

"qualified sportsmen's club" means an entity that meets all of the

 

following conditions:

 

     (a) Either of the following:

 

     (i) Is exempt from taxation under section 501(c)(3) of the

 

internal revenue code, 26 USC 501.

 

     (ii) Is organized not for pecuniary profit, is an affiliate of

 

a statewide conservation organization that is exempt from taxation

 

under section 501(c)(3) of the internal revenue code, 26 USC 501,

 

and can demonstrate that all of its individual members are formally

 

affiliated with that statewide conservation organization. As used

 

in this subparagraph, "statewide conservation organization" means a

 

nonprofit corporation that is exempt from taxation under section

 

501(c)(3) of the internal revenue code, 26 USC 501, and whose

 

primary purpose is to educate the public throughout this state in

 

conservation and in hunting, fishing, archery, or shooting sports

 

and firearms safety.

 

     (b) Is organized or established, as reflected in its articles

 

of incorporation or bylaws, for the primary purpose of educating

 

the public in conservation and in hunting, fishing, archery, or

 

shooting sports and firearms safety.

 

     (c) Makes its real property available to the public for uses

consistent with the primary purpose for which the entity is

 

incorporated at least 55 days per calendar year. The condition

 

described in this subdivision may be met by an entity that charges

 

a reasonable fee for use of its property.

 

     (d) Annually offers to the public, without charge or at

 

reduced rates, education consistent with the primary purpose for

 

which the entity is incorporated. To meet the condition described

 

in this subdivision, the education must be provided to members of

 

the public who number not less than 4 times the number of members

 

of the entity as of the tax day. For purposes of this subdivision,

 

the education may consist of the regular distribution of free

 

educational literature to students at a local public school.

 

     (e) Makes its real property available, without charge, to 1 or

 

more governmental entities for uses consistent with the primary

 

purpose for which the entity is incorporated.

 

     (f) Offers membership in the entity, without charge or at

 

reduced rates, based on the prospective member's financial ability

 

to pay the regular membership fee. The condition described in this

 

subdivision may be met by an entity that establishes reasonable

 

rules concerning membership rates based on ability to pay.

 

     (g) Annually, by not later than the first day of the March

 

meeting of the board of review, provides the local tax collecting

 

unit with an affidavit that includes, at a minimum, all of the

 

following:

 

     (i) A statement from the entity's presiding officer attesting

 

to its fulfillment of the condition described in subdivision (a) in

 

the immediately preceding calendar year.

     (ii) A copy of the articles of incorporation or bylaws

 

evidencing the entity's fulfillment of the condition described in

 

subdivision (b) in the immediately preceding calendar year.

 

     (iii) A statement indicating the number of days the entity

 

made its real property available to the public in fulfilling the

 

condition described in subdivision (c) in the immediately preceding

 

calendar year.

 

     (iv) A description of the type of education and number of

 

recipients who received the education in fulfillment of the

 

condition described in subdivision (d) in the immediately preceding

 

calendar year.

 

     (v) A list of the governmental entities that used the entity's

 

real property as described in subdivision (e) in the immediately

 

preceding calendar year.

 

     (vi) A copy of the membership rate schedule reflecting the

 

entity's fulfillment of the condition described in subdivision (f)

 

in the immediately preceding calendar year.

 

     (7) (6) If authorized by a resolution of the local tax

 

collecting unit in which the real or personal property is located,

 

real or personal property owned by a nonprofit charitable

 

institution that is occupied and used by the nonprofit charitable

 

institution's chief executive officer as his or her principal

 

residence as a condition of his or her employment and that is

 

contiguous to real property that contains the nonprofit charitable

 

institution's principal place of business is exempt from the

 

collection of taxes under this act.

 

     (8) (7) A charitable home of a fraternal or secret society, or

a nonprofit corporation whose stock is wholly owned by a religious

 

or fraternal society that owns and operates facilities for the aged

 

and chronically ill and in which the net income from the operation

 

of the corporation does not inure to the benefit of any person

 

other than the residents, is exempt from the collection of taxes

 

under this act.

 

     (9) (8) Real and personal property owned and occupied by a

 

nonprofit corporation that meets all of the following conditions is

 

exempt from the collection of taxes under this act:

 

     (a) The nonprofit corporation is exempt from taxation under

 

section 501(c)(3) of the internal revenue code, 26 USC 501.

 

     (b) The nonprofit corporation meets 1 of the following

 

conditions:

 

     (i) Is a skilled nursing facility or home for the aged,

 

licensed under the public health code, 1978 PA 368, MCL 333.1101 to

 

333.25211, or is an adult foster care facility licensed under the

 

adult foster care facility licensing act, 1979 PA 218, MCL 400.701

 

to 400.737. As used in this subparagraph:

 

     (A) "Adult foster care facility" means that term as defined in

 

section 3 of the adult foster care facility licensing act, 1979 PA

 

218, MCL 400.703.

 

     (B) "Home for the aged" means that term as defined in section

 

20106 of the public health code, 1978 PA 368, MCL 333.20106.

 

     (C) "Skilled nursing facility" means that term as defined in

 

section 20109 of the public health code, 1978 PA 368, MCL

 

333.20109.

 

     (ii) Provides housing, rehabilitation services, diagnostic

services, medical services, or therapeutic services to 1 or more

 

disabled persons. As used in this subparagraph, "disabled person"

 

means that term as defined in section 7d.

 

     (c) The nonprofit corporation meets either of the following

 

conditions:

 

     (i) The real and personal property of the nonprofit

 

corporation was being treated as exempt from the collection of all

 

taxes under this act on the effective date of the amendatory act

 

that added this subsection.January 10, 2007.

 

     (ii) The real and personal property of the nonprofit

 

corporation had been treated as exempt from the collection of all

 

taxes under this act on December 31, 2004 and there has been no

 

transfer of ownership of that property during the period of time

 

beginning the last day the property was treated as exempt until the

 

effective date of the amendatory act that added this subsection.

 

January 10, 2007. As used in this sub-subparagraph, subparagraph,

 

"transfer of ownership" means that term as defined in section 27a.

 

     (10) (9) If real or personal property owned and occupied by a

 

nonprofit corporation is not eligible for an exemption under

 

subsection (8), (9), that nonprofit corporation is not precluded

 

from applying for exemption under subsection (1).

 

     (11) (10) As used in this section:

 

     (a) "Charitable trust" means a charitable trust registered

 

under the supervision of trustees for charitable purposes act, 1961

 

PA 101, MCL 14.251 to 14.266.

 

     (b) "Governmental entity" means 1 or more of the following:

 

     (i) The federal government or an agency, department, division,

bureau, board, commission, council, or authority of the federal

 

government.

 

     (ii) This state or an agency, department, division, bureau,

 

board, commission, council, or authority of this state.

 

     (iii) A county, city, township, village, local or intermediate

 

school district, or municipal corporation.

 

     (iv) A public educational institution, including, but not

 

limited to, a local or intermediate school district, a public

 

school academy, a community college or junior college established

 

pursuant to section 7 of article VIII of the state constitution of

 

1963, or a state 4-year institution of higher education located in

 

this state.

 

     (v) Any other authority or public body created under state

 

law.

 

     (c) "Public school academy" means a public school academy

 

organized under the revised school code, 1976 PA 451, MCL 380.1 to

 

380.1852.