Bill Text: MI SB0960 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Property tax; exemptions; real and personal property of a nonprofit charitable organization; modify exemptions. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Introduced - Dead) 2016-10-20 - Referred To Committee Of The Whole With Substitute S-1 [SB0960 Detail]

Download: Michigan-2015-SB0960-Introduced.html

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SENATE BILL No. 960

 

 

May 11, 2016, Introduced by Senators BRANDENBURG, HUNE, MARLEAU, PROOS, GREEN, WARREN and SCHMIDT and referred to the Committee on Finance.

 

 

 

     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 charitable 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

 

charitable 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 charitable 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

 

charitable 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) 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.

 

     (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.

 

     (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 of 1986, 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, "transfer of

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

 

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

 

nonprofit corporation is not eligible for an exemption under

 

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

 

applying for exemption under subsection (1).

 

     (10) As used in this section:

 

     (a) "Charitable purpose" means 1 or more of the following:

 

     (i) The advancement of education.

 

     (ii) The advancement of religion.

 

     (iii) The promotion of health and wellness.

 

     (iv) The relief of poverty.

 

     (v) The erection of public buildings or other public works.

 

     (vi) The promotion of a governmental purpose or the

 

alleviation of burdens or responsibilities that would otherwise be

 

borne by the government.

 

     (b) (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.

 

     (c) (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.

 

     (d) "Nonprofit charitable institution" means an organization

 

that meets at least 1 of the following:

 

     (i) Is a nonprofit organization exempt from taxation under

 

section 501(c)(3) of the internal revenue code of 1986, 26 USC 501.

 

     (ii) Is primarily or solely organized for charity.

 

     (iii) Offers charitable services to a particular class of

 

individuals, and does not condition the receipt of those services

 

within that class based upon an individual's health, ability to

 

pay, or other characteristics.

 

     (iv) Serves a charitable purpose or a purpose set forth in

 

subsection (5)(a).

 

     (v) Charges no more for its charitable services than is

 

reasonably necessary to maintain the operation of the organization.

 

     (vi) Has an overall nature that promotes charity, regardless

 

of the amount of money that the organization devotes to charitable

 

activities on an annual basis.

 

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

 

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

 

380.1852.

     (11) The state tax commission shall work with an organization

 

that represents nonprofit organizations in this state to provide

 

educational materials and programs to assessors of local tax

 

collecting units on the changes to this section made by the

 

amendatory act that added this subsection.