SENATE BILL No. 740

October 17, 2001, Introduced by Senators GARCIA and STILLE and referred to the

Committee on Finance.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 2a and 34c (MCL 211.2a and 211.34c), section

2a as amended by 1982 PA 539 and section 34c as amended by 2000

PA 415; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 2a. (1) For BEFORE DECEMBER 31, 2005, FOR purposes

2 of section 2, a mobile home which THAT is not covered by

3 SUBJECT TO THE SPECIFIC TAX LEVIED UNDER section 41 of Act No.

4 243 of the Public Acts of 1959, being section 125.1041 of the

5 Michigan Compiled Laws, and while 1959 PA 243, MCL 125.1041,

6 located on land otherwise assessable as real property under

7 this act, and NOT EXEMPT FROM THE COLLECTION OF TAXES UNDER THIS

8 ACT, whether or not permanently affixed to the soil, shall be

9 THAT REAL PROPERTY, IS considered real property and shall be

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1 assessed as part of the real property upon ON which the mobile

2 home is located.

3 (2) AFTER DECEMBER 31, 2005, FOR PURPOSES OF SECTION 2, A

4 MOBILE HOME LOCATED ON REAL PROPERTY, WHETHER OR NOT PERMANENTLY

5 AFFIXED TO THAT REAL PROPERTY, IS SUBJECT TO ASSESSMENT AND THE

6 COLLECTION OF TAXES UNDER THIS ACT. A MOBILE HOME SHALL BE

7 ASSESSED AS REAL PROPERTY TO THE OWNER OF THE MOBILE HOME, EXCEPT

8 AS OTHERWISE PROVIDED IN SECTION 34C. FOR TAXES LEVIED AFTER

9 DECEMBER 31, 2005 AND BEFORE JANUARY 1, 2007, A MOBILE HOME'S

10 TAXABLE VALUE IS 50% OF THAT MOBILE HOME'S TRUE CASH VALUE. FOR

11 TAXES LEVIED AFTER DECEMBER 31, 2006, A MOBILE HOME'S TAXABLE

12 VALUE IS THAT VALUE DETERMINED UNDER SECTION 27A.

13 (3) (2) As used in this section, "mobile home" does not

14 include a travel trailer or camping trailer which THAT is

15 either parked in a campground licensed by this state for not more

16 than 180 days in any calendar year, or parked upon ON private

17 property, including a designated storage area of a licensed camp-

18 ground, for the sole purpose of storage.

19 (4) (3) As used in this section, "mobile home" does not

20 include a truck camper which is parked in a campground licensed

21 by this state which THAT is a portable structure, designed and

22 constructed to be loaded onto , or affixed to , the bed or

23 chassis of a truck, and which THAT is used to provide temporary

24 living quarters for recreational camping or travel.

25 (5) (4) For purposes of AS USED IN this section: , the

26 following definitions shall apply:

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1 (a) A travel trailer is "TRAVEL TRAILER" MEANS a vehicular

2 portable structure mounted on wheels and of THAT IS a size and

3 weight as THAT DOES not to require special highway movement

4 permits when IF drawn by a stock passenger automobile or when

5 IF drawn with a fifth wheel hitch mounted on a motor vehicle, and

6 THAT is primarily designed, constructed, and used to provide tem-

7 porary living quarters for recreational camping or travel.

8 (b) A camping trailer is "CAMPING TRAILER" MEANS a vehicu-

9 lar portable temporary living quarters used for recreational

10 camping or travel and of THAT IS a size and weight as THAT

11 DOES not to require special highway movement permits when IF

12 drawn by a motor vehicle.

13 Sec. 34c. (1) Not later than the first Monday in March in

14 each year, the assessor shall classify every item of assessable

15 property according to the definitions contained in this section.

16 Following the March board of review, the assessor shall tabulate

17 the total number of items and the valuations as approved by the

18 board of review for each classification and for the totals of

19 real and personal property in the local tax collecting unit. The

20 assessor shall transmit to the county equalization department and

21 to the state tax commission the tabulation of assessed valuations

22 and other statistical information the state tax commission con-

23 siders necessary to meet the requirements of this act and 1911 PA

24 44, MCL 209.1 to 209.8.

25 (2) The classifications of assessable real property are

26 described as follows:

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1 (a) Agricultural real property includes parcels used

2 partially or wholly for agricultural operations, with or without

3 buildings, and parcels assessed to the department of natural

4 resources and valued by the state tax commission. As used in

5 this subdivision, "agricultural operations" means the following:

6 (i) Farming in all its branches, including cultivating

7 soil.

8 (ii) Growing and harvesting any agricultural, horticultural,

9 or floricultural commodity.

10 (iii) Dairying.

11 (iv) Raising livestock, bees, fish, fur-bearing animals, or

12 poultry.

13 (v) Turf and tree farming.

14 (vi) Performing any practices on a farm incident to, or in

15 conjunction with, farming operations. A commercial storage, pro-

16 cessing, distribution, marketing, or shipping operation is not

17 part of agricultural operations.

18 (b) Commercial real property includes the following:

19 (i) Platted or unplatted parcels used for commercial pur-

20 poses, whether wholesale, retail, or service, with or without

21 buildings.

22 (ii) Parcels used by fraternal societies.

23 (iii) Parcels used as golf courses, boat clubs, ski areas,

24 or apartment buildings with more than 4 units.

25 (c) Developmental real property includes parcels containing

26 more than 5 acres without buildings, or more than 15 acres with a

27 market value in excess of its value in use. Developmental real

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1 property may include farm land or open space land adjacent to a

2 population center, or farm land subject to several competing val-

3 uation influences.

4 (d) Industrial real property includes the following:

5 (i) Platted or unplatted parcels used for manufacturing and

6 processing purposes, with or without buildings.

7 (ii) Parcels used for utilities sites for generating plants,

8 pumping stations, switches, substations, compressing stations,

9 warehouses, rights-of-way, flowage land, and storage areas.

10 (iii) Parcels used for removal or processing of gravel,

11 stone, or mineral ores, whether valued by the local assessor or

12 by the state geologist.

13 (e) Residential real property includes the following:

14 (i) Platted or unplatted parcels , with or without build-

15 ings, and condominium apartments located within or outside a

16 village or city, AND, FOR TAXES LEVIED AFTER DECEMBER 31, 2005, A

17 MOBILE HOME ON A PLATTED OR UNPLATTED PARCEL, which are used for,

18 or probably will be used for, residential purposes.

19 (ii) Parcels that are used for, or probably will be used

20 for, recreational purposes, such as lake lots and hunting lands,

21 located in an area used predominantly for recreational purposes.

22 (f) Timber-cutover real property includes parcels that are

23 stocked with forest products of merchantable type and size, cut-

24 over forest land with little or no merchantable products, and

25 marsh lands or other barren land. However, when a typical pur-

26 chase of this type of land is for residential or recreational

27 uses, the classification shall be changed to residential.

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1 (3) The classifications of assessable personal property are

2 described as follows:

3 (a) Agricultural personal property includes farm buildings

4 on leased land and any agricultural equipment and produce not

5 exempt by law.

6 (b) Commercial personal property includes the following:

7 (i) All equipment, furniture, and fixtures on commercial

8 parcels, and inventories not exempt by law.

9 (ii) Outdoor advertising signs and billboards.

10 (iii) Well drilling rigs and other equipment attached to a

11 transporting vehicle but not designed for operation while the

12 vehicle is moving on the highway.

13 (iv) Unlicensed commercial vehicles or commercial vehicles

14 licensed as special mobile equipment or by temporary permits.

15 (v) Commercial buildings on leased land.

16 (c) Industrial personal property includes the following:

17 (i) All machinery and equipment, furniture and fixtures, and

18 dies on industrial parcels, and inventories not exempt by law.

19 (ii) Industrial buildings on leased land.

20 (iii) Personal property of mining companies valued by the

21 state geologist.

22 (d) Residential personal property includes a home, cottage,

23 or cabin on leased land, and, FOR TAXES LEVIED BEFORE JANUARY 1,

24 2006, a mobile home that would be assessable as real property

25 under section 2a except that the land REAL PROPERTY on which it

26 is located is not assessable because the land is exempt FROM

27 THE COLLECTION OF TAXES UNDER THIS ACT.

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1 (e) Utility personal property includes the following:

2 (i) Electric transmission and distribution systems, substa-

3 tion equipment, spare parts, gas distribution systems, and water

4 transmission and distribution systems.

5 (ii) Oil wells and allied equipment such as tanks, gathering

6 lines, field pump units, and buildings.

7 (iii) Inventories not exempt by law.

8 (iv) Gas wells with allied equipment and gathering lines.

9 (v) Oil or gas field equipment stored in the open or in

10 warehouses such as drilling rigs, motors, pipes, and parts.

11 (vi) Gas storage equipment.

12 (vii) Transmission lines of gas or oil transporting

13 companies.

14 (viii) Utility buildings on leased land.

15 (4) For taxes levied before January 1, 2003, buildings on

16 leased land of any classification are improvements where the

17 owner of the improvement is not the owner of the land or fee, the

18 value of the land is not assessed to the owner of the building,

19 and the improvement has been assessed as personal property pursu-

20 ant to section 14(6). For taxes levied after December 31, 2002,

21 buildings located upon leased land, except buildings exempt under

22 section 9f, shall be assessed as real property under section 2

23 and shall bear the same classification as the parcel upon which

24 the building is located. For taxes levied after December 31,

25 2001, buildings exempt under section 9f shall be assessed as per-

26 sonal property.

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1 (5) If the total usage of a parcel includes more than 1

2 classification, the assessor shall determine the classification

3 that most significantly influences the total valuation of the

4 parcel.

5 (6) An owner of any assessable property who disputes the

6 classification of that parcel shall notify the assessor and may

7 protest the assigned classification to the March board of

8 review. An owner or assessor may appeal the decision of the

9 March board of review by filing a petition with the state tax

10 commission not later than June 30 in that tax year. The state

11 tax commission shall arbitrate the petition based on the written

12 petition and the written recommendations of the assessor and the

13 state tax commission staff. An appeal may not be taken from the

14 decision of the state tax commission regarding classification

15 complaint petitions and the state tax commission's determination

16 is final and binding for the year of the petition.

17 (7) The department of treasury may appeal the classification

18 of any assessable property to the residential and small claims

19 division of the Michigan tax tribunal not later than December 31

20 in the tax year for which the classification is appealed.

21 (8) This section shall not be construed to encourage the

22 assessment of property at other than the uniform percentage of

23 true cash value prescribed by this act.

24 Enacting section 1. 1959 PA 243, MCL 125.1001 to 125.1043,

25 is repealed effective December 30, 2005.

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