Michigan Laws 207.960 – Residential housing facility tax; determination of amount; exemption; payment; disbursements
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Terms Used In Michigan Laws 207.960
- certificate: means the certificate issued under section 6. See Michigan Laws 207.952
- Department: means the department of treasury. See Michigan Laws 207.952
- district: means an area not less than 1 acre in size of a qualified local governmental unit established as provided in section 3. See Michigan Laws 207.952
- New residential facility: means residential housing property newly constructed on or after the effective date of this act. See Michigan Laws 207.952
- Qualified residential facility: means a new residential facility or a rehabilitated residential facility, located in a residential housing district. See Michigan Laws 207.952
- Rehabilitated residential facility: means existing residential housing property that has been renovated, with a renovation investment of not less than $50,000. See Michigan Laws 207.952
- Residential housing property: means that portion of real property not occupied by an owner of that real property, that is used for residential purposes, is rented or leased to an income-qualified household at no more than 30% of the household's modified household income as determined by the qualified local governmental unit, and is either a multiple-unit dwelling of more than 4 units or a dwelling unit in a multiple-purpose structure of more than 4 dwelling units. See Michigan Laws 207.952
- specific tax: means the specific tax levied under this act. See Michigan Laws 207.952
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Taxable value: means the value determined under section 27a of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 207.952
(1) The residential housing facility tax is levied upon every owner of a qualified residential facility to which a certificate is issued under this act.
(2) Except as otherwise provided in this section, the amount of the residential housing facility tax on a new residential facility is determined each year by multiplying 1/2 of the average rate of taxation levied upon commercial, industrial, and utility property upon which ad valorem taxes are assessed as determined for the immediately preceding calendar year by the state board of assessors under section 13 of 1905 PA 282, MCL 207.13, by the current taxable value of the new residential facility after deducting the taxable value of the land.
(3) Except as otherwise provided in this section, the amount of the residential housing facility tax on a rehabilitated residential facility is determined each year by multiplying 1/2 of the average rate of taxation levied upon commercial, industrial, and utility property upon which ad valorem taxes are assessed as determined for the immediately preceding calendar year by the state board of assessors under section 13 of 1905 PA 282, MCL 207.13, by the current taxable value of the rehabilitated residential facility after deducting the taxable value of the land.
(4) Within 60 days after the granting of a residential housing exemption certificate under section 6 for a new residential facility, if the state treasurer does not determine that reducing the number of mills levied under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and used to calculate the specific tax under subsection (2) is necessary to provide an adequate supply of residential housing for income-qualified households in this state, the millage rate used to calculate the specific tax under subsection (2) shall be increased by 3 mills. If the state treasurer determines that further reducing the millage rate used to calculate the specific tax under subsection (2) is necessary to provide an adequate supply of residential housing for income-qualified households in this state, the state treasurer may exclude an additional 3 mills levied under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, from the millage rate used to calculate the specific tax under subsection (2).
(5) Notwithstanding subsections (2) and (3), the specific tax paid each year for that part of a qualified residential facility that is exempt from ad valorem property taxes under section 7 and not used as residential housing property in the immediately preceding year must be equal to the amount of the ad valorem property taxes that would be paid on that portion of the qualified residential facility if the qualified residential facility were not exempt from ad valorem property taxes under section 7. The owner of the qualified residential facility must allocate the benefits of any tax exemption granted under this act exclusively to residential housing property.
(6) The specific tax is an annual tax, payable at the same times, in the same installments, and to the same officer or officers as taxes imposed under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, are payable. Except as otherwise provided in this section, the officer or officers shall disburse the specific tax payments received by the officer or officers each year to and among this state, cities, school districts, counties, and authorities, at the same times and in the same proportions as required by law for the disbursement of taxes collected under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(7) For intermediate school districts receiving state aid under section 56 and 62 of the state school aid act of 1979, 1979 PA 94, MCL 388.1656 and 388.1662, of the amount of specific tax that would otherwise be disbursed to an intermediate school district, all or a portion, to be determined on the basis of the tax rates being utilized to compute the amount of state aid, shall be paid to the state treasury to the credit of the state school aid fund established by section 11 of article IX of the state constitution of 1963.
(8) The amount of specific tax described in this section that would otherwise be disbursed to a local school district for school operating purposes must be paid instead to the state treasury and credited to the state school aid fund established by section 11 of article IX of the state constitution of 1963.
(9) The officer or officers shall send a copy of the amount of disbursement made to each unit under this section to the department on a form provided by the department.
(10) A qualified residential facility located in a renaissance zone under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, is exempt from the specific tax levied under this act to the extent and for the duration provided pursuant to the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, except for that portion of the specific tax attributable to a special assessment or a tax described in section 7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff. The specific tax calculated under this subsection must be disbursed proportionately to the taxing unit or units that levied the special assessment or the tax described in section 7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff.