Bill Text: MI HB4668 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Property tax; assessments; assessment of real property; revise for certain summer resort and assembly corporations. Amends 1897 PA 230 (MCL 455.1 - 455.24) & adds sec. 16a. TIE BAR WITH: HB 4669'11
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-03-15 - Assigned Pa 46'12 With Immediate Effect [HB4668 Detail]
Download: Michigan-2011-HB4668-Engrossed.html
HB-4668, As Passed Senate, March 7, 2012
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4668
A bill to amend 1897 PA 230, entitled
"An act to provide for the formation of corporations for the
purpose of owning, maintaining and improving lands and other
property kept for the purposes of summer resorts or for ornament,
recreation or amusement, and to repeal all laws or parts of laws in
conflict herewith; and to impose certain duties on the department
of commerce,"
(MCL 455.1 to 455.24) by adding section 16a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 16a. (1) Beginning January 1, 2012, if a corporation
subject to this act has real property that has been platted under
section 20 and lots in that plat have been leased to stockholders
under section 21, all of the taxable and assessed values of the
corporation's real property within that plat shall be allocated to
the stockholder lessees so that each stockholder lessee is assessed
for all of the following:
(a) The real property each stockholder lessee leases from the
corporation.
(b) Any of the corporation's real property improvements that
are within the plat and are available for the common and exclusive
use of the corporation's stockholder lessees, including guests of
the stockholder lessees.
(2) A corporation may propose to the assessor of the local tax
collecting district in which the property is located the percentage
the assessor may use to allocate the taxable and assessed values of
the corporation's property within the plat to the property that the
stockholder lessees lease from the corporation. The percentage of
allocation that the corporation may propose shall meet all of the
following requirements:
(a) The total allocation shall equal 100%.
(b) The allocation shall be the same as, or calculated using
the same methodology as, the corporation used in the immediately
preceding tax year to allocate the corporation's real property
taxes to the corporation's stockholders for payment to the
corporation, if the corporation made such an allocation.
(3) If the assessor allocates taxable and assessed values as
proposed under subsection (2) and if a stockholder lessee appeals
that allocation, that stockholder lessee has the burden of proof to
establish by clear and convincing evidence that the taxable and
assessed values allocated by the assessor violate this section.
(4) If the taxable and assessed values of a corporation's real
property are allocated to the corporation's stockholder lessees
under this section, all of the following apply to any real property
within the plat that is owned by the corporation and that is
available for the common and exclusive use of the stockholder
lessees in any subsequent tax year:
(a) The taxable and assessed values are zero, because the
value of that real property is included in the assessment of the
real property leased by the stockholder lessees.
(b) If a stockholder lessee assigns a lease of the
corporation's real property and transfers the related corporation
stock, the value of the property subject to that lease is deemed to
be included in the price paid for a transfer of the real property
interests of a stockholder lessee. The purchase price paid for an
assignment and transfer as described under this subdivision is not
the presumptive true cash value of the property transferred as
provided in section 27(5) of the general property tax act, 1893 PA
206, MCL 211.27.
(5) If a stockholder lessee assigns a lease of the
corporation's real property and transfers the related corporation
stock, a property transfer affidavit shall be filed as provided in
section 27a(10) of the general property tax act, 1893 PA 206, MCL
211.27a.
(6) As provided under section 27a of the general property tax
act, 1893 PA 206, MCL 211.27a, an assessment roll change or tax
roll change resulting from the application of this section is not a
transfer of ownership.
(7) For the 2012 tax year, the total taxable value allocated
to the stockholder lessees shall not exceed the total taxable value
of the corporation's real property on the tax roll on December 30,
2011 multiplied by the 2012 tax year inflation rate of 1.027. As
used in this subsection, "inflation rate" means the rate determined
under section 34d of the general property tax act, 1893 PA 206, MCL
211.34d, which for the 2012 tax year is 1.027.
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 4669 of the 96th Legislature is enacted into
law.
