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 bill aims to expand tax exemptions for real and personal property owned by nonprofit charitable institutions and charitable trusts. Under the proposed legislation, properties owned and occupied by these entities for their intended charitable purposes will be exempt from property taxes. This exemption extends to properties leased or loaned to other nonprofit charitable institutions, charitable trusts, nonprofit hospitals, or educational institutions, provided they are used for their organizational purposes. Additionally, properties leased to governmental entities will also be exempt if they meet certain conditions.
The bill introduces specific provisions for properties owned by qualified conservation organizations, which must be open to the public for educational or recreational use and held for conservation purposes. These organizations must adhere to strict guidelines regarding the use and sale of the property to maintain their tax-exempt status. Furthermore, the bill allows for tax exemptions on properties used as the principal residence of a nonprofit charitable institution's chief executive officer, contingent upon local tax unit approval.
The legislation also addresses properties owned by nonprofit corporations that provide services to disabled persons or operate licensed facilities for the aged and chronically ill. These properties will retain their tax-exempt status if they were previously exempt as of specific dates and have not changed ownership. The bill clarifies that nonprofit corporations not qualifying under these specific provisions may still apply for exemptions under the general criteria outlined in subsection (1).
The bill does not specify new funding allocations or financial figures but focuses on modifying existing tax exemption statutes to broaden the scope of eligible properties. The amendments are designed to support nonprofit organizations by reducing their tax burdens, thereby enabling them to allocate more resources towards their charitable missions. The proposed changes will take effect for taxes levied after December 31, 1997, ensuring retroactive applicability for certain provisions. The bill's impact on stakeholders includes potential financial relief for qualifying nonprofits and conservation organizations, while local tax revenues may be affected by the expanded exemptions.
Co-sponsored by Sens.
Referred to the Committee on Finance, Insurance, and Consumer Protection
