Bill Text: MI HB5189 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Land use; farmland and open space; development rights agreements; modify terms for processing and relinquishment. Amends secs. 36101, 36104, 36109, 36110, 36111 & 36202 of 1994 PA 451 (MCL 324.36101 et seq.) & repeals sec. 36117 of 1994 PA 451 (MCL 324.36117). TIE BAR WITH: HB 5190'15
Spectrum: Moderate Partisan Bill (Republican 26-3)
Status: (Passed) 2016-07-13 - Assigned Pa 265'16 With Immediate Effect [HB5189 Detail]
Download: Michigan-2015-HB5189-Introduced.html
HOUSE BILL No. 5189
December 17, 2015, Introduced by Reps. Lauwers, Brett Roberts, Glardon, Johnson, Rendon, Victory, Hughes, Jenkins, Garcia, Pagel, Cole, Leutheuser, Barrett, Brunner, Lyons, Vaupel, Kelly, Aaron Miller, Canfield, LaFontaine, Smiley, LaVoy, McBroom, Franz, Outman, Potvin, Sheppard, Price and Lucido and referred to the Committee on Agriculture.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 36101, 36104, 36109, and 36110 (MCL 324.36101,
324.36104, 324.36109, and 324.36110), section 36101 as amended by
2008 PA 336, sections 36104 and 36110 as amended by 1996 PA 233,
and section 36109 as amended by 2007 PA 174; and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 36101. As used in this part:
(a) "Agricultural conservation easement" means a conveyance,
by a written instrument, in which, subject to permitted uses, the
owner relinquishes to the public in perpetuity his or her
development rights and makes a covenant running with the land not
to undertake development.
(b) "Agricultural use" means the production of plants and
animals useful to humans, including forages and sod crops; grains,
feed crops, and field crops; dairy and dairy products; poultry and
poultry products; livestock, including breeding and grazing of
cattle, swine, captive cervidae, and similar animals; berries;
herbs; flowers; seeds; grasses; nursery stock; fruits; vegetables;
maple syrup production; Christmas trees; and other similar uses and
activities. Agricultural use includes use in a federal acreage set-
aside program or a federal conservation reserve program.
Agricultural use does not include the management and harvesting of
a woodlot.
(c) "Conservation district board" means that term as defined
in section 9301.
(d) "Development" means an activity that materially alters or
affects the existing conditions or use of any land.
(e) "Development rights" means an interest in land that
includes the right to construct a building or structure, to improve
land for development, to divide a parcel for development, or to
extract minerals incidental to a permitted use or as set forth in
an instrument recorded under this part.
(f) "Development rights agreement" or "agreement" means a
restrictive covenant, evidenced by an instrument in which the owner
and the state, for a term of years, agree to jointly hold the right
to undertake development of the land, and that contains a covenant
running with the land, for a term of years, not to undertake
development, subject to permitted uses.
(g) "Development rights easement" or "easement" means a grant,
by an instrument, in which the owner relinquishes to the public in
perpetuity or for a term of years the right to undertake
development of the land, and that contains a covenant running with
the land, not to undertake development, subject to permitted uses.
(h) "Farmland" means 1 or more of the following:
(i) A farm of 40 or more acres in 1 ownership, with 51% or
more of the land area devoted to an agricultural use.
(ii) A farm of 5 acres or more in 1 ownership, but less than
40 acres, with 51% or more of the land area devoted to an
agricultural use, that has produced a gross annual income from
agriculture of $200.00 per year or more per acre of cleared and
tillable land. A farm described in this subparagraph enrolled in a
federal acreage set aside program or a federal conservation reserve
program is considered to have produced a gross annual income from
agriculture of $200.00 per year or more per acre of cleared and
tillable land.
(iii) A farm designated by the department of agriculture and
rural development as a specialty farm in 1 ownership that has
produced a gross annual income from an agricultural use of
$2,000.00 or more. Specialty farms include, but are not limited to,
greenhouses; equine breeding and grazing; the breeding and grazing
of cervidae, pheasants, and other game animals; bees and bee
products; mushrooms; aquaculture; and other similar uses and
activities.
(iv) Parcels of land in 1 ownership that are not contiguous
but that constitute an integral part of a farming operation being
conducted on land otherwise qualifying as farmland may be included
in an application under this part.
(i) "Fund" means the agricultural preservation fund created in
section 36202.
(j) (i)
"Local governing body"
means 1 of the following:
(i) With respect to farmland or open space land that is
located in a city or village, the legislative body of the city or
village.
(ii) With respect to farmland or open space land that is not
located in a city or village but that is located in a township
having a zoning ordinance in effect as provided by law, the
township board of the township.
(iii) With respect to farmland or open space land that is not
described in subparagraph (i) or (ii), the county board of
commissioners.
(k) (j)
"Open space land" means 1
of the following:
(i) Lands defined as 1 or more of the following:
(A) Any undeveloped site included in a national registry of
historic places or designated as a historic site pursuant to state
or federal law.
(B) Riverfront ownership subject to designation under part
305, to the extent that full legal descriptions may be declared
open space under the meaning of this part, if the undeveloped
parcel or government lot parcel or portions of the undeveloped
parcel or government lot parcel as assessed and owned is affected
by that part and lies within 1/4 mile of the river.
(C) Undeveloped lands designated as environmental areas under
part 323, including unregulated portions of those lands.
(ii) Any other area approved by the local governing body, the
preservation of which area in its present condition would conserve
natural or scenic resources, including the promotion of the
conservation of soils, wetlands, and beaches; the enhancement of
recreation opportunities; the preservation of historic sites; and
idle potential farmland of not less than 40 acres that is
substantially undeveloped and because of its soil, terrain, and
location is capable of being devoted to agricultural uses as
identified by the department of agriculture and rural development.
(l) (k)
"Owner" means a person
having a freehold estate in
land coupled with possession and enjoyment. If land is subject to a
land contract, owner means the vendee in agreement with the vendor
and rural development.
(m) (l) "Permitted
use" means any use expressly authorized
within a development rights agreement, development rights easement,
or agriculture conservation easement that is consistent with the
farming operation or that does not alter the open space character
of the land. Storage, retail or wholesale marketing, or processing
of agricultural products is a permitted use in a farming operation
if more than 50% of the stored, processed, or merchandised products
are produced by the farm operator for at least 3 of the immediately
preceding 5 years. The state land use agency shall determine
whether a use is a permitted use pursuant to section 36104a.
(n) (m)
"Person" includes an
individual, corporation, limited
liability company, business trust, estate, trust, partnership, or
association, or 2 or more persons having a joint or common interest
in land.
(o) (n)
"Planning commission"
means a planning commission
created
by the local governing body under 1945 PA 282, MCL 125.101
to
125.115, 1959 PA 168, MCL 125.321 to 125.333, or 1931 PA 285,
MCL
125.31 to 125.45, as applicable.under
the Michigan planning
enabling act, 2008 PA 33, MCL 125.3801 to 125.3885.
(p) (o)
"Prohibited use" means a
use that is not consistent
with an agricultural use for farmland subject to a development
rights agreement or is not consistent with the open space character
of the land for lands subject to a development rights easement.
(q) (p)
"Property taxes" means
general ad valorem taxes levied
after January 1, 1974, on lands and structures in this state,
including collection fees, but not including special assessments,
penalties, or interest.
(r) (q)
"Regional planning
commission" means a regional
planning commission created pursuant to 1945 PA 281, MCL 125.11 to
125.25.
(s) (r)
"Regional planning
district" means the planning and
development regions as established by executive directive 1968-1,
as amended, whose organizational structure is approved by the
regional council.
(t) (s)
"State income tax act"
means the income tax act of
1967,
1967 PA 281, MCL 206.1 to 206.532, 206.713, and in effect
during the particular year of the reference to the act.
(u) (t)
"State land use agency"
means the department of
agriculture and rural development.
(v) (u)
"Substantially
undeveloped" means any parcel or area
of land essentially unimproved except for a dwelling, building,
structure, road, or other improvement that is incidental to
agricultural and open space uses.
(w) (v)
"Unique or critical land
area" means agricultural or
open space lands identified by the land use agency as an area that
should be preserved.
Sec. 36104. (1) An owner of land desiring a farmland
development rights agreement may apply by filing an application
with the local governing body having jurisdiction under this part.
The owner shall apply on a form prescribed by the state land use
agency. The application shall contain information reasonably
necessary to properly classify the land as farmland. This
information shall include a land survey or a legal description of
the land and a map showing the significant natural features and all
structures and physical improvements located on the land.
(2) Upon receipt of the application, the local governing body
shall notify the county planning commission or the regional
planning commission and the soil conservation district agency. If
the county has jurisdiction, it shall also notify the township
board
of the township in which the land is situated. If the land is
within
3 miles of the boundary of a city or within 1 mile of the
boundary
of a village, the county or township governing body having
jurisdiction
shall notify the governing body of the city or
village.
(3) An agency or local governing body receiving notice has 30
days to review, comment, and make recommendations to the local
governing body with which the application is filed. These reviewing
agencies do not have an approval or rejection power over the
application.
(4) After considering the comments and recommendations of the
reviewing agencies and local governing bodies, the local governing
body holding the application shall approve or reject the
application within 45 days after the application is received,
unless that period is extended by agreement of the parties
involved. The local governing body's approval or rejection of the
application shall be based upon, and consistent with, rules
promulgated
by the state land use agency under section 36116.
(5) If an application for a farmland development rights
agreement is approved by the local governing body having
jurisdiction, the local governing body shall forward a copy, along
with the comments and recommendations of the reviewing bodies, to
the state land use agency. The application shall contain a
statement from the assessing officer where the property is located
specifying the current fair market value of the land and structures
in compliance with the agricultural section of the Michigan state
tax commission assessor manual. If action is not taken by the local
governing body within the time prescribed or agreed upon, the
applicant may proceed as provided in subsection (6) as if the
application was rejected.
(6) If the application for a farmland development rights
agreement is rejected by the local governing body, the local
governing body shall return the application to the applicant with a
written statement regarding the reasons for rejection. Within 30
days after receipt of the rejected application, the applicant may
appeal the rejection by submitting the application to the state
land use agency.
(7) The state land use agency, within 60 days after a farmland
development rights agreement application is received under
subsection
(5) or (6), shall approve or reject the application. A
rejection
of The state land use agency
may reject an application
for a farmland development rights agreement that has been approved
by
a local governing body by the state land use agency shall be for
nonconformance
only if the proposed
agreement would be inconsistent
with
section 36101(f). only. If the application is approved by the
state land use agency, the state land use agency shall prepare a
farmland development rights agreement that includes all of the
following provisions:
(a) A structure shall not be built on the land except for use
consistent with farm operations, which includes a residence for an
individual essential to the operation of the farm under section
36111(2)(b), or lines for utility transmission or distribution
purposes or with the approval of the local governing body and the
state land use agency.
(b) Land improvements shall not be made except for use
consistent with farm operations or with the approval of the local
governing body and the state land use agency.
(c) Any interest in the land shall not be sold except a
scenic, access, or utility easement that does not substantially
hinder farm operations.
(d) Public access is not permitted on the land unless agreed
to by the owner.
(e) Any other condition and restriction on the land as agreed
to by the parties that is considered necessary to preserve the land
or appropriate portions of it as farmland.
(8) A copy of the approved application and the farmland
development rights agreement shall be forwarded to the applicant
for execution. An application that is approved by the local
governing body by November 1 shall take effect for the current tax
year.
(9) If the owner executes the farmland development rights
agreement, the owner shall return it to the state land use agency
for execution on behalf of the state. The state land use agency
shall record the executed development rights agreement with the
register of deeds of the county in which the land is situated and
shall notify the applicant, the local governing body and its
assessing office, all reviewing agencies, and the department of
treasury.
(10) If an application for a farmland development rights
agreement is rejected by the state land use agency, the state land
use agency shall notify the affected local governing body, all
reviewing agencies concerned, and the applicant with a written
statement containing the reasons for rejection. An applicant
receiving a rejection from the state land use agency may appeal the
rejection pursuant to the administrative procedures act of 1969,
Act
No. 306 of the Public Acts of 1969, being sections 24.201 to
24.328
of the Michigan Compiled Laws.1969
PA 306, MCL 24.201 to
24.328.
(11) An applicant may reapply for a farmland development
rights agreement following a 1-year waiting period.
(12) The value of the jointly owned development rights as
expressed in a farmland development rights agreement is not exempt
from ad valorem taxation and shall be assessed to the owner of the
land as part of the value of that land.
Sec. 36109. (1) An owner of farmland and related buildings
subject to 1 or more development rights agreements under section
36104 or agricultural conservation easements or purchases of
development rights under section 36111b or 36206 who is required or
eligible to file a return as an individual or a claimant under the
state
income tax act may claim a credit against the state income
tax liability for the amount by which the property taxes on the
land and structures used in the farming operation, including the
homestead, restricted by the development rights agreements,
agricultural conservation easements, or purchases of development
rights exceed 3.5% of the household income as defined in section
508 of the income tax act of 1967, 1967 PA 281, MCL 206.508,
excluding a deduction if taken under section 613 of the internal
revenue code of 1986, 26 USC 613. For the purposes of this section,
all of the following apply:
(a) A partner in a partnership is considered an owner of
farmland and related buildings owned by the partnership and covered
by a development rights agreement, agricultural conservation
easement, or purchase of development rights. A partner is
considered to pay a proportion of the property taxes on that
property equal to the partner's share of ownership of capital or
distributive share of ordinary income as reported by the
partnership
to the internal revenue service Internal
Revenue
Service or, if the partnership is not required to report that
information
to the internal revenue service, Internal Revenue
Service, as provided in the partnership agreement or, if there is
no written partnership agreement, a statement signed by all the
partners. A partner claiming a credit under this section based upon
the partnership agreement or a statement shall file a copy of the
agreement or statement with his or her income tax return. If the
agreement or statement is not filed, the department of treasury
shall deny the credit. All partners in a partnership claiming the
credit allowed under this section shall compute the credit using
the same basis for the apportionment of the property taxes.
(b) A shareholder of a corporation that has filed a proper
election under subchapter S of chapter 1 of subtitle A of the
internal revenue code of 1986, 26 USC 1361 to 1379, is considered
an owner of farmland and related buildings covered by a development
rights agreement that are owned by the corporation. A shareholder
is considered to pay a proportion of the property taxes on that
property equal to the shareholder's percentage of stock ownership
for the tax year as reported by the corporation to the internal
revenue service. Except as provided in subsection (8), this
subdivision applies to tax years beginning after 1987.
(c) Except as otherwise provided in this subdivision, an
individual in possession of property for life under a life estate
with remainder to another person or holding property under a life
lease is considered the owner of that property if it is farmland
and related buildings covered by a development rights agreement.
Beginning January 1, 1986, if an individual in possession of
property for life under a life estate with remainder to another
person or holding property under a life lease enters into a written
agreement with the person holding the remainder interest in that
land and the written agreement apportions the property taxes in the
same manner as revenue and expenses, the life lease or life estate
holder and the person holding the remainder interest may claim the
credit under this act as it is apportioned to them under the
written agreement upon filing a copy of the written agreement with
the return.
(d) If a trust holds farmland and related buildings covered by
a development rights agreement and an individual is treated under
subpart E of subchapter J of subchapter A of chapter 1 of the
internal revenue code of 1986, 26 USC 671 to 679, as the owner of
that portion of the trust that includes the farmland and related
buildings, that individual is considered the owner of that
property.
(e) An individual who is the sole beneficiary of a trust that
is the result of the death of that individual's spouse is
considered the owner of farmland and related buildings covered by a
development rights agreement and held by the trust if the trust
conforms to all of the following:
(i) One hundred percent of the trust income is distributed to
the beneficiary in the tax year in which the trust receives the
income.
(ii) The trust terms do not provide that any portion of the
trust is to be paid, set aside, or otherwise used in a manner that
would qualify for the deduction allowed by section 642(c) of the
internal revenue code of 1986, 26 USC 642.
(f) A member in a limited liability company is considered an
owner of farmland and related buildings covered by a development
rights agreement that are owned by the limited liability company. A
member is considered to pay a proportion of the property taxes on
that property equal to the member's share of ownership or
distributive share of ordinary income as reported by the limited
liability
company to the internal revenue service.Internal Revenue
Service.
(2) An owner of farmland and related buildings subject to 1 or
more development rights agreements under section 36104 or
agricultural conservation easements or purchases of development
rights under section 36111b or 36206 to whom subsection (1) does
not apply may claim a credit under the former single business tax
act, 1975 PA 228, or the Michigan business tax act, 2007 PA 36, MCL
208.1101 to 208.1601, for the amount by which the property taxes on
the land and structures used in farming operations restricted by
the development rights agreements, agricultural conservation
easements, or purchases of development rights exceed 3.5% of the
adjusted business income of the owner as defined in section 36 of
the former single business tax act, 1975 PA 228, or the business
income tax base of the owner as defined in section 201 of the
Michigan business tax act, 2007 PA 36, MCL 208.1201, plus
compensation to shareholders not included in adjusted business
income or the business income tax base, excluding any deductions if
taken under section 613 of the internal revenue code of 1986, 26
USC 613. When calculating adjusted business income for tax years
beginning before 1987, federal taxable income shall not be less
than zero for the purposes of this subsection only. A participant
is not eligible to claim a credit and refund against the former
single business tax act, 1975 PA 228, or the Michigan business tax
act, 2007 PA 36, MCL 208.1101 to 208.1601, unless the participant
demonstrates that the participant's agricultural gross receipts of
the farming operation exceed 5 times the property taxes on the land
for each of 3 out of the 5 tax years immediately preceding the year
in which the credit is claimed. This eligibility requirement does
not apply to those participants who executed farmland development
rights agreements under this part before January 1, 1978. A
participant may compare, during the contract period, the average of
the most recent 3 years of agricultural gross receipts to property
taxes in the first year that the participant entered the program
under the present contract in calculating the gross receipts
qualification. Once an election is made by the participant to
compute the benefit in this manner, all future calculations shall
be made in the same manner.
(3) If the farmland and related buildings covered by a
development rights agreement under section 36104 or an agricultural
conservation easement or purchase of development rights under
section 36111b or 36206 are owned by more than 1 owner, each owner
is allowed to claim a credit under this section based upon that
owner's share of the property tax payable on the farmland and
related buildings. The department of treasury shall consider the
property tax equally apportioned among the owners unless a written
agreement signed by all the owners is filed with the return, which
agreement apportions the property taxes in the same manner as all
other items of revenue and expense. If the property taxes are
considered equally apportioned, a husband and wife shall be
considered 1 owner, and a person with respect to whom a deduction
under section 151 of the internal revenue code of 1986, 26 USC 151,
is allowable to another owner of the property shall not be
considered an owner.
(4) A beneficiary of an estate or trust to which subsection
(1) does not apply is entitled to the same percentage of the credit
provided in this section as that person's percentage of all other
distributions by the estate or trust.
(5) If the allowable amount of the credit claimed exceeds the
state income tax or the state business tax otherwise due for the
tax year or if there is no state income tax or the state business
tax due for the tax year, the amount of the claim not used as an
offset against the state income tax or the state business tax,
after examination and review, shall be approved for payment to the
claimant pursuant to 1941 PA 122, MCL 205.1 to 205.31. The total
credit allowable under this part and chapter 9 of the income tax
act of 1967, 1967 PA 281, MCL 206.501 to 206.532, or the former
single business tax act, 1975 PA 228, or the Michigan business tax
act, 2007 PA 36, MCL 208.1101 to 208.1601, shall not exceed the
total property tax due and payable by the claimant in that year.
The amount the credit exceeds the property tax due and payable
shall be deducted from the credit claimed under this part.
(6) For purposes of audit, review, determination, appeals,
hearings, notices, assessments, and administration relating to the
credit program provided by this section, the state income tax act,
1967
PA 281, MCL 206.1 to 206.36, 206.532,
the former single
business tax act, 1975 PA 228, or the Michigan business tax act,
2007 PA 36, MCL 208.1101 to 208.1601, applies according to which
tax the credit is claimed against. If an individual is allowed to
claim a credit under subsection (1) based upon property owned or
held by a partnership, S corporation, or trust, the department of
treasury
may require that the individual furnish to the department
it with a copy of a tax return, or portion of a tax return, and
supporting schedules that the partnership, S corporation, or trust
files under the internal revenue code.
(7) The department of treasury shall account separately for
payments under this part and not combine them with other credit
programs. A payment made to a claimant for a credit claimed under
this part shall be issued by 1 or more warrants made out to the
county treasurer in each county in which the claimant's property is
located and the claimant, unless the claimant specifies on the
return that a copy of the receipt showing payment of the property
taxes that became a lien in the year for which the credit is
claimed, or that became a lien in the year before the year for
which the credit is claimed, is attached to the income tax or
business tax return filed by the claimant. If the claimant
specifies that a copy of the receipt is attached to the return, the
payment shall be made directly to the claimant. A warrant made out
to a claimant and a county treasurer shall be used first to pay
delinquent property taxes, interest, penalties, and fees on
property restricted by the development rights agreement. If the
warrant exceeds the amount of delinquent taxes, interest,
penalties, and fees, the county treasurer shall remit the excess to
the claimant. If a claimant falsely specifies that the receipt
showing payment of the property taxes is attached to the return and
if the property taxes on the land subject to that development
rights agreement were not paid before the return was filed, all
future payments to that claimant of credits claimed under this act
attributable to that development rights agreement may be made
payable to the county treasurer of the county in which the property
subject to the development rights agreement is located and to that
claimant.
(8) For property taxes levied after 1987, a person that was an
S corporation and had entered into a development rights agreement
before January 1, 1989, and paid property taxes on that property,
may claim the credit allowed by this section as an owner eligible
under subsection (2). A subchapter S corporation claiming a credit
as permitted by this subsection for taxes levied in 1988 through
1990 shall claim the credit by filing an amended return under the
former
single business tax act, 1975 PA 228. ,
MCL 208.1 to
208.145.
If a subchapter S corporation files
an amended return as
permitted by this subsection and if a shareholder of the subchapter
S corporation claimed a credit under subsection (1)(b) for the same
property taxes, the shareholder shall file an amended return under
the state income tax act. A subchapter S corporation is not
entitled to a credit under this subsection until all of its
shareholders file the amended returns required by this subsection.
The department of treasury shall first apply a credit due to a
subchapter S corporation under this subsection to repay credits
claimed under this section by the subchapter S corporation's
shareholders for property taxes levied in 1988 through 1990 and
shall refund any remaining credit to the S corporation. Interest or
penalty is not due or payable on an income tax liability resulting
from an amended return required by this subsection. A subchapter S
corporation electing to claim a credit as an owner eligible under
subsection (2) shall not claim a credit under subsection (1) for
property taxes levied after 1987.
(9) If, in any year, a person who is eligible for a credit
under this section does not claim the credit for which he or she is
eligible, the department of treasury shall calculate the amount of
the credit. From revenues received by the department of treasury
under the income tax act of 1967, 1967 PA 281, MCL 206.1 to
206.713, the department of treasury shall deposit into the fund an
amount equal to the total amount of unclaimed credits calculated by
the department of treasury under this section.
Sec. 36110. (1) Land subject to a development rights agreement
or easement may be sold without penalty under sections 36111,
36112, and 36113, if the use of the land by the successor in title
complies with the provisions contained in the development rights
agreement or easement. The seller shall notify the governmental
authority having jurisdiction over the development rights of the
change in ownership.
(2) If the owner of land subject to a development rights
agreement or easement dies or becomes totally and permanently
disabled or when an individual essential to the operation of the
farm dies or becomes totally and permanently disabled, the land may
be relinquished from the program under this part and is subject to
a lien pursuant to sections 36111(11), 36112(7), and 36113(7). A
request for relinquishment under this section shall be made within
3 years from the date of death or disability. A request for
relinquishment under this subsection shall be made only by the
owner in case of a disability or, in case of death, the person who
becomes the owner through survivorship or inheritance.
(3) If an owner of land subject to a development rights
agreement becomes totally and permanently disabled or dies, land
containing structures that were present before the recording of the
development rights agreement may be relinquished from the
agreement, upon request of the disabled agreement holder or upon
request of the person who becomes an owner through survivorship or
inheritance, and upon approval of the local governing body and the
state land use agency. Not more than 2 acres may be relinquished
under this subsection unless additional land area is needed to
encompass all of the buildings located on the parcel, in which case
not more than 5 acres may be relinquished. If the parcel proposed
to be relinquished is less in area than the minimum parcel size
required by local zoning, the parcel may not be relinquished unless
a variance is obtained from the local zoning board of appeals to
allow for the smaller parcel size. The portion of the farmland
relinquished from the development rights agreement under this
subsection is subject to a lien pursuant to section 36111(11).
(4) The land described in a development rights agreement may
be
divided into smaller parcels of land
, each of which shall be
covered
by a separate development rights agreement and each of
which
shall be eligible for subsequent renewal. The separate
development
rights agreements shall contain and
continued under the
same terms and conditions as the original development rights
agreement. The smaller parcels created by the division must meet
the minimum requirements for being enrolled under this act or be 40
acres or more in size. Farmland may be divided once under this
subsection without fee by the state land use agency. The state land
use agency may charge a reasonable fee not greater than the state
land use agency's actual cost of dividing the agreement for all
subsequent divisions of that farmland. When a division of a
development rights agreement is made under this subsection and is
executed and recorded, the state land use agency shall notify the
applicant, the local governing body and its assessing office, all
reviewing agencies, and the department of treasury.
(5) As used in this section, "individual essential to the
operation of the farm" means a co-owner, partner, shareholder, farm
manager, or family member, who, to a material extent, cultivates,
operates,
or manages farmland under this act. part. An individual
is considered involved to a material extent if that individual does
1 or more of the following:
(a) Has a financial interest equal to or greater than 1/2 the
cost of producing the crops, livestock, or products and inspects
and advises and consults with the owner on production activities.
(b) Works 1,040 hours or more annually in activities connected
with production of the farming operation.
(6) The state land use agency may charge and collect a fee of
$25.00
$50.00 to process each change of ownership under subsection
(1) or each division under subsection (4). The fee collected under
this
subsection shall be used by the state land use agency to
administer
this act.forwarded to the
state treasurer for deposit
into the fund.
Enacting section 1. Section 36117 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.36117, is
repealed.
Enacting section 2. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 3. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5190 (request no.
03889'15) of the 98th Legislature is enacted into law.
