HOUSE BILL No. 5452


     November 1, 2001, Introduced by Reps. Bob Brown, Drolet, Wojno, Richardville and Vear and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending section 2 (MCL 211.2), as amended by 2000 PA 415.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  (1) For the purpose of taxation, real property

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      includes all of the following:

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           (a) All land within this state, all buildings and fixtures

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      on the land, and all appurtenances to the land, except as

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      expressly exempted by law.

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           (b) All real property owned by this state or purchased or

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      condemned for public highway purposes by any board, officer, com-

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      mission, or department of this state and sold on land contract,

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      notwithstanding the fact that the deed has not been executed

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      transferring title.




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           (c) For taxes levied after December 31, 2002, buildings and

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      improvements located upon leased real property, except buildings

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      and improvements exempt under section 9f, if the value of the

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      buildings or improvements is not otherwise included in the

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      assessment of the real property.  However, buildings and improve-

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      ments located on leased real property shall not be treated as

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      real property unless they would be treated as real property if

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      they were located on real property owned by the taxpayer.

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           (2) The taxable status of persons and real and personal

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      property for a tax year shall be determined as of each December

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      31 of the immediately preceding year, which is considered the tax

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      day, any provisions in the charter of any city or village to the

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      contrary notwithstanding.  An assessing officer is not restricted

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      to any particular period in the preparation of the assessment

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      roll but may survey, examine, or review property at any time

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      before or after the tax day.

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           (3) Notwithstanding a provision to the contrary in any law,

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      if real property is acquired for public purposes by purchase or

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      condemnation, all general property taxes, but not penalties,

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      levied during the 12 months immediately preceding, but not

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      including, the day title passes to the public agency shall be

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      prorated in accordance with this subsection.  The seller or con-

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      demnee is responsible for the portion of taxes from the levy date

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      or dates to, but not including, the day title passes and the

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      public agency is responsible for the remainder of the taxes.  If

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      the date that title will pass cannot be ascertained definitely

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      and an agreement in advance to prorate taxes is desirable, an



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      estimated date for the passage of title may be agreed to.  In the

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      absence of an agreement, the public agency shall compute the pro-

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      ration of taxes as of the date title passes.  The question of

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      proration of taxes shall not be considered in any condemnation

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      proceeding.  As used in this subsection, "levy date" means the

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      day on which general property taxes become due and payable.  In

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      addition to the portion of taxes for which the public agency is

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      responsible under the provisions of this subsection, the public

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      agency is also responsible for all general property taxes levied

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      on or after the date title passes and before the property is

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      removed from the tax rolls.

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           (4) In a real estate transaction between private parties

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       in  FOR PURPOSES OF PRORATING TAXES ONLY, TAXES LEVIED BY THIS

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      STATE OR BY A CITY, COUNTY, VILLAGE, TOWNSHIP, OR OTHER TAXING

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      UNIT ARE CONSIDERED TO BE FOR GOVERNMENTAL SERVICES RENDERED IN

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      THE CALENDAR YEAR IN WHICH THE TAXES BECOME DUE AND PAYABLE,

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      REGARDLESS OF WHEN THE TAXES ARE COLLECTED UNDER THIS ACT.  IN

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      the absence of an agreement to the contrary, the seller is

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      responsible for that portion of the  annual  taxes  levied 
   THAT

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      HAVE OR WILL BECOME DUE AND PAYABLE during the  12 months immedi-

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      ately preceding  CALENDAR YEAR, UP TO but not including, the day

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      title passes,  from the levy date or dates to, but not including,

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      the day title passes and the  CALCULATED BY MULTIPLYING THE TAXES

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      THAT HAVE OR WILL BECOME DUE AND PAYABLE DURING THE CALENDAR YEAR

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      BY A FRACTION THE NUMERATOR OF WHICH IS THE NUMBER OF DAYS THE

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      SELLER OWNED THE REAL ESTATE, UP TO BUT NOT INCLUDING THE DAY

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      TITLE PASSES, AND THE DENOMINATOR OF WHICH IS 365.  THE buyer is



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      responsible for the remainder of the  annual  taxes THAT HAVE OR

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      WILL BECOME DUE AND PAYABLE DURING THE CALENDAR YEAR.   As used

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      in this subsection, "levy date" means the day on which a general

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      property tax becomes due and payable.
















































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