Introduced
by
To establish a system for taxing agricultural property based on its value as a farm, rather than on the traditional standard of tax assessments based on the value of the property when put to its highest and best use. The bill would authorize an alternative specific tax for the owner of qualified agricultural property, which would be assessed at rate of 40 percent of the regular property tax for farm buildings, and a flat rate of between $18 and $12 an acre for farmland, depending on how long the land has been enrolled in the program. House Bill 5031 would exempt land subject to the specific tax from regular property taxes. Qualified farmland which was later removed from agricultural use would be subject to a provision which would recapture a portion of the unpaid property tax, up to 10-percent of the value of the property. A portion of the recaptured money would be deposited into a Michigan Agriculture Trust Fund for the purchase of development rights on farmland.
Referred to the Committee on Land Use and Environment
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that eliminates the original provisions, and instead allows farmers to claim certain income tax or Single Business Tax credits based on the amount their property tax assessment on farmland devoted to agricultural use exceed $5 per acre.
The substitute passed by voice vote
Amendment offered
by
To clarify that the tax credit is for property taxes on farmland, not on structures.
The amendment passed by voice vote
Amendment offered
by
To require that any reduction in school aid fund revenue caused by the tax credits be made up with transfers from the state general fund.
The amendment passed by voice vote
Passed in the House 104 to 1 (details)
To allow farmers in a county with a "comprehensive land use plan" to claim certain income tax or Single Business Tax credits based on the amount their property tax assessments on farmland devoted to agricultural use exceed $5 per acre. Participating farmers would have to enter contracts promising to keep the land in agriculture for 20 years. A farmer could terminate the contract upon payment of an early withdrawal assessment, the amount of which goes down the longer the contract has been in effect.
Referred to the Committee on Natural Resources and Environmental Affairs
Reported without amendment
With the recommendation that the substitute (S-2) be adopted and that the bill then pass.
