Bill Text: MI HB4966 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Taxation: specific tax; land value tax; provide for. Creates new act. TIE BAR WITH: HB 4967'23, HB 4968'23, HB 4969'23, HB 4970'23
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2023-10-11 - Postponed For The Day [HB4966 Detail]
Download: Michigan-2023-HB4966-Introduced.html
HOUSE BILL NO. 4966
A bill to provide for the authorization and levy of a specific tax in lieu of certain ad valorem property taxes for purposes of improving equity in the taxation of property and to encourage the development of property within the boundaries of certain cities and local units of government; to prescribe the powers, duties, and jurisdictions of those cities and local units of government, and certain local and state officials, in the authorization and levy of the specific alternative tax and for the administration of this act; to limit the levy of certain ad valorem property taxes and exempt certain property from the collection of certain ad valorem property taxes within cities and local units of government qualified to levy the specific alternative tax; to regulate the levy, collection, and distribution of the specific alternative tax within the jurisdiction of each city or local unit of government qualified to levy the specific alternative tax; to create and provide for the modification of certain credits and exemptions against the specific alternative tax in certain circumstances in order to enhance the equitable purposes and objectives of this act; to provide for the exemption from certain taxes; and to provide for the powers and duties of certain state and local governmental officers and entities.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "land tax equity act".
Sec. 2. (1) The legislature finds and declares all of the following:
(a) That there is a compelling need to enable local governmental units in encouraging the maintenance, improvement, and development of real property in this state, the consequent growth in real property values, and ancillary economic growth in this state, so as to assure the provision of necessary governmental services essential to public health, safety, and welfare.
(b) That to address the needs described in subdivision (a), it is necessary to exempt certain properties from the collection of certain ad valorem property taxes levied on the combined taxable values of land, fixtures, improvements, and appurtenances and to replace those taxes with a specific tax that applies on a uniform basis only to land subject to the specific tax.
(c) That it is necessary and appropriate for the promotion of the health, safety, and welfare of the people of this state to enable the formation of an alternative system of specific taxation of land as provided in this act.
(d) That the establishment of an alternative system of specific taxation of land under this act and the powers conferred by this act constitute a necessary program and serve a necessary public purpose.
(e) That certain credits and exemptions applicable to the specific tax created under this act will facilitate the expenditure of revenues generated by the specific tax for purposes that assure equity in the application of the specific tax and further the purposes of this act.
(2) The purpose of this act is to promote the public health, safety, welfare, convenience, and prosperity of this state and its cities and local units of government.
(a) "Authorized ad valorem millage" means that term as defined in section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy.
(b) "Chief executive officer" means the mayor of a city that has a separately elected mayor form of government.
(c) "Commission" means the state tax commission.
(d) "Equivalent land tax rate" means, for a qualified city or qualified local unit of government, the percentage that, when multiplied by the taxable value of all land in the qualified city or qualified local unit of government for the first year in which the rate is imposed, would generate revenue for the qualified city or qualified local unit of government equal to the revenue that would have been generated by the qualified tax for the first year in which the land value tax is imposed. An equivalent land tax rate must be calculated to reflect an inclusion of all of the following:
(i) Tax increment revenues.
(ii) Any reimbursements to a land bank fast track authority required by this act to be annually distributed from receipts of the land value tax under this act.
(iii) An adjustment to compensate for the effect that inclusion of any credit under sections 9 and 10 will have on revenue for the qualified city.
(e) "Land" means real property other than buildings and fixtures or other improvements on the real property, and appurtenances to the real property.
(f) "Land value tax" means the specific tax determined and levied by a qualified city or qualified local unit of government under this act.
(g) "Local unit of government" means a school district, community college district, library, authority, charter authority, or other type of local governmental unit that is not a city and that meets all of the following:
(i) Is created by or authorized to be created by state law.
(ii) Is authorized to levy ad valorem taxes for operating purposes.
(iii) Has geographic boundaries coterminous with or totally within the geographic boundaries of a qualified city.
(h) "Operating purposes" means that term as defined in section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy.
(i) "Qualified city" or "qualified local unit of government" means a city that is a land equity city or a local unit of government that is a land equity local unit under section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy.
(j) "Qualified tax" means that term as defined in section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy, in the amount designated under section 4 as eligible to be converted for levy under this act as a land value tax.
(k) "Tax increment revenues" means all of the following, as applicable:
(i) For a downtown development authority, that term as defined in section 201(cc) of the recodified tax increment financing act, 2018 PA 57, MCL 125.4201.
(ii) For a tax increment finance authority, that term as defined in section 301(aa) of the recodified tax increment financing act, 2018 PA 57, MCL 125.4301.
(iii) For a local development finance authority, that term as defined in section 402(jj) of the recodified tax increment financing act, 2018 PA 57, MCL 125.4402.
(iv) For a corridor improvement authority, that term as defined in section 603(g) of the recodified tax increment financing act, 2018 PA 57, MCL 125.4603.
(v) For a brownfield redevelopment authority, that term as defined in section 2(tt) of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2652.
Sec. 4. (1) After a written request is submitted by the chief executive officer of a city to the governing body of the city, the city, subject to the terms of this act, may authorize a land value tax under subsection (2). The chief executive officer's recommendation must include the level of the qualified city's authorized ad valorem millage that may be qualified taxes and eligible to be designated by the qualified city to be converted to an equivalent land tax rate and exempted from collection, and the year in which the recommended land value tax would commence. If the chief executive officer for a city desires to make a recommendation for the governing body of the city to adopt a system of credits allowed under section 9 or 10, or both, the chief executive officer's written request must include that recommendation and any recommendation for modifications to those credits.
(2) After receiving a written request as described in subsection (1), the governing body of the city may authorize a land value tax by adopting a resolution that is consistent with the request made under subsection (1) and that provides for all of the following:
(a) A number of mills of the city's authorized ad valorem millage that may be designated as the portion eligible to be converted to the equivalent land tax rate of the city, which millage would be the qualified taxes of the city that are exempted from collection as ad valorem taxes under section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy, on approval of the electors of a land value tax.
(b) The projected millage of the equivalent land tax rate that will be levied on land in the first year the land value tax is imposed.
(c) The first year in which the land value tax would be imposed if approved by the electors of the city.
(d) The phase-in period and percentages for the equivalent land tax rate during the phase-in period, if 1 has been recommended by the chief executive officer.
(e) If the chief executive officer of a city has made a recommendation for the governing body of the city to adopt a system of credits allowed under section 9 or 10, or both, and the governing body determines to adopt the system of credits, the approval of the system of credits consistent with the requirements of sections 9 and 10 and, if recommended by the chief executive officer, of any modifications permitted under section 9(5) of the terms of the system of credits under section 9.
(3) A local unit of government may authorize a land value tax by adoption of a resolution of the governing body of the local unit of government that is consistent with the requirements specified in subsection (2) for a resolution required of a city, except that a local unit of government may not adopt a system of credits allowed under section 9 or 10. No action by a local official to recommend the adoption of a resolution authorizing a land value tax by the governing body of the local unit of government is required. After adopting a resolution, the qualified local unit of government shall take those actions required of a city under section 5 to submit the question of levying the land value tax to the electors of the qualified local unit of government. The question submitted by a qualified local unit of government must include all applicable information specified under section 5.
Sec. 5. Following a qualified city's approval of a resolution under section 4, the qualified city shall submit to the electors of the qualified city the question of levying the land value tax at the first regular election date, as established under section 641 of the Michigan election law, 1954 PA 116, MCL 168.641. The qualified city shall administer and conduct the election under the provisions of the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992. The question must include, at a minimum, all of the following:
(a) An identification of the qualified city.
(b) The level of the qualified city's authorized ad valorem millage that, on voter approval of a land value tax, will be qualified taxes exempted from collection as an ad valorem levy.
(c) The first year in which the land value tax would be imposed if approved by the electors of the qualified city and any phase-in period.
(d) Based on the most recently established taxable valuations and the amount of qualified taxes to be exempted from collection as an ad valorem levy, the estimated equivalent land tax rate that would be levied on land.
(e) A description of the base on which the land value tax would be imposed if approved by the electors of the qualified city.
Sec. 6. (1) If a majority of the electors voting on the question vote in favor of the question submitted under section 5, a qualified city or qualified local unit of government shall take the action required to certify its ad valorem tax millage levy and shall designate, at the level established by the resolution adopted under section 4(2) and by the proposal approved by the qualified electors under section 5, the portion of the certified mills to be qualified taxes. From the qualified taxes, the qualified city or qualified local unit of government shall establish and designate that portion of the equivalent land tax rate of the qualified city or the qualified local unit of government for the tax year that will be imposed as a land value tax. The portion of the equivalent land tax rate of the qualified city or the qualified local unit of government for the tax year that will be imposed as a land value tax may be less than, but must not exceed, the equivalent land tax rate for the qualified city or qualified local unit of government.
(2) The entire millage certified annually by a qualified city or qualified local unit of government, including those mills designated to be qualified taxes, must be used for purposes of determining the rate of any specific tax imposed pursuant to law that is based on or calculated using certified millage levies.
Sec. 7. (1) A qualified city or qualified local unit of government shall levy a land value tax at the portion of the equivalent land tax rate designated under section 6 on each parcel of land not exempt from the tax under this act that is located in the qualified city or qualified local unit of government if the land value tax is approved by the electors of the qualified city. The qualified city shall apply credits against the land value tax consistent with sections 9 and 10 and with the terms of the system of credits adopted by the qualified city under the resolution of the qualified city under section 4. A qualified local unit of government may not apply credits authorized for a qualified city against the land value tax imposed by the qualified local unit of government.
(2) Following the designation of those certified mills to be qualified taxes, the chief executive officer of the qualified city shall determine the equivalent land tax rate for the qualified city and that portion of the equivalent land tax rate that will be levied as a land value tax for the year. The chief executive officer shall transmit a statement specifying these amounts, and the calculation of the equivalent land tax rate, to the governing body of the qualified city and the commission. The statement transmitted by the chief executive officer must also specify the authorized ad valorem millage rate of the qualified city that will be qualified taxes and exempt from collection under section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy. In a qualified local unit of government, the actions required of the chief executive officer to calculate the equivalent land tax rate must be performed by the governing body of the local unit of government unless delegated by the governing body to an official or administrative officer of the local unit of government.
(3) The equivalent land tax rate calculated under subsection (2) for the initial year in which the land value tax is levied must not change for levies of the land value tax in any subsequent year unless the certified mills designated to be qualified taxes increase. If the certified mills designated to be qualified taxes increase from the prior year, the equivalent land tax rate related to converting the increased number of designated mills must be calculated based on the revenues those additional mills would have generated on the taxable value for the year in which the equivalent land tax rate would increase.
(4) The portion of the equivalent land tax rate designated under section 6 to be imposed as a land value tax applies to the taxable value of land subject to the land value tax in the year in which the land value tax is levied.
(5) If a qualified city does not have a chief executive officer, the actions assigned to the chief executive officer may be taken by the governing body of the qualified city.
(6) In any year in which a qualified city or qualified local unit of government imposes a land value tax under this act, the ad valorem tax millage of a qualified tax that is exempt from collection under section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy, must not be levied as ad valorem taxes by the qualified city or qualified local unit of government.
(7) For purposes of this act and unless an alternative method for determining the taxable value of land is prescribed by the commission, the taxable value of the land portion of a parcel of property in each year is the product of the taxable value for the entire property for the year multiplied by the percentage that the state equalized value of the land portion of the parcel for the year represents to the state equalized value of the entire property for the year, including improvements.
Sec. 8. (1) A land value tax must be assessed, levied, collected, and disbursed in the same manner as an ad valorem tax on real property under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, except as otherwise provided in this act.
(2) A land value tax is an annual tax, payable at the same times, in the same installments, and to the same officer or officers as ad valorem taxes imposed under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, and the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, are payable. The land value tax is subject to the same collection fees, penalties, and interest as taxes imposed under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, including, but not limited to, any applicable property tax administration fee or late penalty charge. Subject to subsection (6), a collecting officer or officers shall disburse the collections of the land value taxes to and among the taxing units levying a qualified tax, at the same times and in the same proportions as each taxing unit's qualified tax being levied bears to the total qualified taxes being levied for all taxing units levying a qualified tax.
(3) The officer or officers to whom the land value tax is payable shall send a notice of the amount of disbursement made to each taxing unit levying a qualified tax under this act to the commission on a form provided by the commission.
(4) Except as provided in this subsection, property granted an exemption under section 7u(5) of the general property tax act, 1893 PA 206, MCL 211.7u, before April 1 of the year in which the land value tax is levied is exempt from the land value tax levied under this act to the extent and for the duration provided under section 7u of the general property tax act, 1893 PA 206, MCL 211.7u. This subsection does not apply to a qualified city if the qualified city has adopted a system of credits that includes the credit authorized under section 9(2)(b).
(5) In addition to and except as provided by subsection (4), land or real estate that is exempt from the levy of ad valorem taxes and ad valorem taxes on land or real estate that are exempt from collection under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, or under other state law for the year in which the land value tax is levied, other than an exemption under section 7yy of the general property tax act, 1893 PA 206, MCL 211.7yy, is exempt from a land value tax levied under this act.
(6) The following disbursements must be made before disbursements required under subsection (2) are made:
(a) If the revenue from the land value tax includes amounts that would have been tax increment revenues captured under a plan approved before the date the electors of a qualified city or qualified local unit of government approved the levy of a land value tax, the tax increment revenues that those entities would have been entitled to receive from qualified taxes must be disbursed to those entities from the revenue from the land value tax consistent with the disbursement requirements under the applicable law governing tax increment revenues of an entity. After the initial year of the levy of a land value tax, the annual rate of growth in reimbursement under this section must not exceed the annual rate of growth in revenue from the land value tax.
(b) A portion of a disbursement made under this subsection to a qualified city must be allocated by the qualified city to a land bank fast track authority created by the qualified city in an amount sufficient to reimburse the land bank fast track authority for any reduction in collections of the eligible tax reverted property specific tax caused by the adoption of a land value tax under this act.
(7) The land value tax levied under this act becomes a lien on property assessed on the same date that an ad valorem property tax becomes a lien on real property under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. A lien for the land value tax includes any applicable collection fees, penalties, or interest. A lien under this subsection continues until paid.
(8) Any unpaid land value tax and any applicable collection fee or interest must be returned as delinquent to the county treasurer at the same time that ad valorem taxes on real property are returned as delinquent under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. Except as otherwise provided in this subsection, real property subject to a land value tax returned as delinquent is subject to forfeiture, foreclosure, and sale at the same time and in the same manner as real property subject to ad valorem taxes returned as delinquent under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
Sec. 9. (1) A system of credits adopted under this act must conform with the requirements of this section and, if applicable, section 10. The system of credits allowed under this section and section 10 may be adopted only by a qualified city to be applied against the land value tax of the qualified city.
(2) Subject to subsections (4) and (5), a credit permitted against land value taxes assessed under this act in a tax year must not be greater than the largest of the following amounts:
(a) For any parcel of real property for which the state equalized value of the land is less than the credit threshold of the state equalized value of the entire real property, the amount greater than zero of the difference, not to exceed the credit cap, between subparagraphs (i) and (ii), as follows:
(i) The total levy of all ad valorem and specific taxes imposed on the parcel of real property by all taxing units for a tax year, including the levy under section 7 by the qualified city and each qualified local unit of government.
(ii) An amount equal to the sum of the following:
(A) The amount, calculated for the tax year, of all certified ad valorem and specific taxes that would be levied, by all taxing units on the taxable value of the real property subject to those ad valorem and specific taxes, if the land value tax levied under this act were not levied.
(B) The product of the base multiplier percentage and the amount determined under sub-subparagraph (A).
(b) For any homestead, the amount, if greater than zero, of the difference between subparagraphs (i) and (ii), as follows:
(i) The total levy of all ad valorem and specific taxes imposed on the homestead by all taxing units for a tax year, including the levy under section 7 by the qualified city and each qualified local unit of government.
(ii) An amount equal to the product, calculated for the tax year, of all certified ad valorem and specific taxes that would be levied by all taxing units on the taxable value of the homestead subject to those ad valorem and specific taxes, if the land value tax levied under this act were not levied.
(3) As used in this section:
(a) "Base multiplier percentage" means, for purposes of subsection (2)(a), 20% or that percentage as may be adjusted under subsections (4) and (5).
(b) "Credit cap" means, for purposes of subsection (2)(a), $50,000.00 or that amount as may be adjusted under subsections (4) and (5).
(c) "Credit threshold" means, for purposes of subsection (2)(a) and as may be adjusted under subsections (4) and (5), 60%.
(d) "Homestead" means the aggregated parcels of the following real property:
(i) A parcel of real property owned and occupied as a principal residence and on which is located a dwelling, if the parcel has a principal residence exemption in effect for the tax year.
(ii) Not more than 4 parcels of unoccupied real property that are under common ownership with, and that are each individually adjacent and contiguous to, the property described in subparagraph (i).
(e) "Principal residence exemption" means an exemption granted under section 7cc of the general property tax act, 1893 PA 206, MCL 211.7cc.
(4) If a system of credits is adopted under section 4, the base multiplier percentage, the credit cap, and the credit threshold for the system of credits under this section must be applied at the levels established by this section unless modifications are authorized by the resolution of the qualified city under section 4(2).
(5) The base multiplier percentage, the credit cap, and the credit threshold established for the system of credits under subsection (2) may be modified by recommendation of the chief executive officer and after concurrence with that recommendation by the governing body of the city. Modifications that change the credit authorized under this section from the levels presumed under subsections (2) and (3) must be made as part of the chief executive officer's recommendation under section 4.
(6) Any treasurer or other collector of land value taxes against which a credit provided by this section applies shall identify, and reduce the amount of land value tax due by, the amount of the credit to be applied against the land value tax. If a credit under subsection (2)(b) exceeds the total amount of land value tax imposed on any separately assessed and taxed parcel of real property comprising the homestead, the treasurer shall provide for the method of allocation of a credit and may refund any excess to the taxpayer in lieu of applying the credit against the land value tax due on parcels comprising the homestead.
(7) A system of credits authorized under this section is available against taxes levied under this act from the first year in which a tax is imposed under this act and for each following year until there has been a transfer of ownership of the land subject to the land value tax and the taxable value of the land is subject to the adjustment described in section 27a(3) of the general property tax act, 1893 PA 206, MCL 211.27a.
Sec. 10. (1) Each eligible property and any adjacent property may receive a credit against the land value tax of a qualified city on the eligible property and any adjacent property in an amount equal to the product of the minimum parking area percentage multiplied by the land value tax for the tax year, after application of any credit permitted against land value taxes under section 9, on the eligible property and any adjacent property.
(2) A credit under this section must not exceed either of the following amounts:
(a) The land value tax for the tax year imposed on the eligible property and any adjacent property, in aggregate, after application of the credits permitted under section 9.
(b) The amount by which the land value tax of a qualified city for the tax year on the eligible property and any adjacent property, in aggregate, exceeds all certified ad valorem and specific taxes that would be levied on the taxable value of that property if the land value tax levied under this act were not levied.
(3) An owner of eligible property must annually apply to the treasurer of the qualified city for certification of the amount of credit under this section to be applied against the land value tax on the eligible property and any adjacent property for the land value tax of a qualified city imposed in the year of an approved application. An application for a credit authorized under this section must be submitted in a form and manner prescribed by the treasurer of the qualified city and must be submitted after December 31 and before April 1 of the year for which the application will be applied. The application must provide for the method of allocation of a credit under this section if the credit authorized exceeds the total amount of land value tax imposed on the eligible property or any adjacent property individually.
(4) As used in this section:
(a) "Adjacent property" means land immediately adjacent and contiguous, including property that may be separated by a public right-of-way, to eligible property if that immediately adjacent and contiguous land meets all of the following criteria:
(i) The owner of the property is under common control with the owner of the eligible property. For the purposes of this subparagraph, an owner is under common control if the owner of the eligible property holds, directly or indirectly, the majority voting or ownership interest in the controlled entity.
(ii) The property includes a portion of its area that is required to be used for accessory parking without charge or assessment of any fee to the user under the zoning ordinances of the qualified city, not to exceed the accessory parking requirements in effect as of the date the land value tax is adopted by the qualified city.
(iii) The property has a separate parcel identification number from the eligible property.
(b) "Eligible property" means land subject to tax imposed by a qualified city under this act that meets all of the following criteria:
(i) The property is not designed or used as a single-family or 2-family dwelling.
(ii) The property includes a structure used for the purpose of an operating business that is open to the public, its employees, its customers, or its residents.
(iii) The property includes a portion of its area that is required to be used for accessory parking without charge or assessment of any fee to the user under the zoning ordinances of the qualified city, not to exceed the accessory parking requirements in effect as of the date the land value tax is adopted by the qualified city.
(c) "Minimum parking area percentage" means the product of the following divided by the total land acreage of the eligible property and any adjacent property:
(i) The lesser of the actual number of accessory parking stalls located on the eligible property and the adjacent property or the number of accessory parking stalls required, and to the extent not waived, for the eligible property under the qualified city's zoning ordinance that are located on the eligible property and the adjacent property.
(ii) The number of square feet for each accessory parking stall required for the eligible property, inclusive of required access aisles, the entirety of which must not exceed 350 square feet per accessory parking stall, divided by 43,560 square feet.
Sec. 11. (1) Subject to the limitations of this section, eligible agricultural property and publicly dedicated property is exempt from a land value tax levied under this act.
(2) A city's assessor shall approve an application to designate real property as either eligible agricultural property or publicly designated property exempt under this section if all of the following conditions are met:
(a) The property meets the definition of eligible agricultural property or publicly designated property under subsection (7) as of December 31 of the year immediately preceding the year for which the exemption would first apply.
(b) The applicant seeking the exemption applies to the assessor, in a form prescribed by the assessor, for the exemption on or after January 1 and before May 1 of the year for which the exemption would first apply.
(c) The applicant seeking the exemption submits an affidavit, in a form prescribed by the assessor, that includes all of the following information:
(i) Evidence as prescribed by the affidavit form that the applicant is the owner of the real property for which the exemption is sought.
(ii) Evidence as prescribed by the affidavit form that the real property for which an exemption is sought qualifies as eligible agricultural property or as a publicly designated property.
(d) The applicant for an exemption under this section submits a list of properties for which an exemption is sought, including any property identification required by the assessor.
(e) For an application for an exemption of eligible agricultural property, not more than 15 acres of property of any owner may be submitted and designated as eligible agricultural property.
(f) For an application for an exemption of publicly dedicated property, not more than 5 acres of property of any owner may be submitted and designated as publicly dedicated property.
(g) For an exemption of publicly dedicated property, the owner has agreed to a development rights agreement or easement with the qualified city for an initial term of not less than 5 years.
(3) After approval of an exemption by the assessor for any parcel of property, the exemption remains in effect until the tax year immediately succeeding either of the following:
(a) A transfer of ownership of the property in a manner that would require the filing of a notice of the transfer of ownership under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(b) A change of use of the property that would disqualify the property as eligible agricultural property or as publicly dedicated property.
(c) Absent notice from the owner of either occurrence described in subdivision (a) or (b), a revocation of the exemption by the assessor if the assessor discovers the occurrence.
(4) The assessor shall review any property for which an exemption has been provided under this section every 3 years after the year in which the exemption is approved.
(5) After termination of an exemption under subsection (3), an owner of the property may submit a new application for an exemption under this section.
(6) A development rights agreement or easement required under subsection (2)(g) must be subject to terms agreed to by the qualified city, must not permit an action that would materially impair the character of the land involved, and must include restrictions and limitations consistent with those in section 36103(2) to (4) and section 36105(2)(a) to (e) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36103 and 324.36105.
(7) As used in this section:
(a) "Agricultural use" means a use for purposes considered an agricultural use under section 36101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101, to the extent the use also meets the requirements under land use ordinances of a qualified city for use as 1 or more of the following:
(i) A farmer's market.
(ii) An urban garden.
(iii) An urban farm.
(b) "Eligible agricultural property" means unoccupied property and related buildings located on property that meets all of the following criteria:
(i) More than 50% of the parcel's acreage is devoted to agricultural use.
(ii) Any portion of the property that is not devoted to agricultural use is used for a purpose that would be considered a permissible use for publicly dedicated property, but for which a development rights agreement or easement is not required.
(iii) The property is classified as agricultural under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c, or the owner of the property has filed the affidavit required under section 7ee of the general property tax act, MCL 1893 PA 206, MCL 211.7ee, if the property is not classified as agricultural under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(iv) All permits required by the qualified city for use of the property for an agricultural use have been obtained by the owner.
(v) The property is not used for commercial storage, commercial processing, commercial distribution, commercial marketing, or commercial shipping operations or other commercial or industrial purposes.
(vi) The property is not otherwise exempt from the land value tax.
(c) "Owner" means any of the following:
(i) A person in whom real property is titled, as evidenced by a recorded deed for the property.
(ii) The holder, directly or indirectly, of a majority voting or ownership interest in an entity in which real property is titled, as evidenced by a recorded deed for the property.
(iii) The holder of rights to real property as a buyer under a land contract.
(iv) A person that owns property as a result of being a beneficiary of a will or trust or as a result of intestate succession.
(d) "Publicly dedicated property" means any land of not greater than 5 contiguous acres that, if preserved in its present state under conditions that may be established under a development rights agreement or easement approved by a qualified city, is not used for private purposes and is serving or accomplishing 1 or more of the following purposes:
(i) Conservation of natural or scenic resources other than plantings, vegetation, and trees on property classified as residential under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c, but including the conservation of soils, wetlands, waterfront, and beaches.
(ii) Enhancement of recreational opportunities or access to recreational opportunities.
(iii) Educational opportunities that will instruct the public on the conservation of natural resources and sustainable agricultural use of land.
Sec. 12. If any portion of this act or application of any portion of this act to any person, property, or circumstance is found to be invalid by a court, the invalidity must not affect the remaining portions or applications of this act that can be given effect without the invalid portions or application if the remaining portions are not determined by the court to be inoperable without application of the invalid provisions. The provisions of this act are severable. A qualified city or qualified local unit of government may take action to adjust provisions of the land value tax to address and correct an invalidity of the application of the land value tax to any person, property, or circumstance that has been found by a court.
Sec. 13. This act must be construed to effectuate the legislative intent and the purposes of this act as complete and independent authorization for the performance of every act and thing authorized in this act, and all powers granted in this act must be broadly interpreted to effectuate the intent and purposes of this act and not as to limitation of powers.
Sec. 14. An injunction may not be issued to stay proceedings for the assessment, levy, or collection of a tax under this act.
Enacting section 1. This act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 4967 (request no. 04007'23).
(b) Senate Bill No.____ or House Bill No. 4970 (request no. 04082'23).
(c) Senate Bill No.____ or House Bill No. 4969 (request no. 04083'23).
(d) Senate Bill No.____ or House Bill No. 4968 (request no. 04084'23).
