HB-5825, As Passed House, December 13, 2016
HB-5825, As Passed Senate, December 13, 2016
SUBSTITUTE FOR
HOUSE BILL NO. 5825
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 4s (MCL 205.94s), as amended by 2006 PA 666.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4s. (1) For taxes levied after June 30, 1999, the tax
levied under this act does not apply to property purchased by a
person engaged in the business of constructing, altering,
repairing, or improving real estate for others to the extent that
the property is affixed to and made a structural part of a
nonprofit hospital or a nonprofit housing entity qualified as
exempt under section 15a of the state housing development authority
act of 1966, 1966 PA 346, MCL 125.1415a. For purposes of a county
long-term medical care facility, "affixed to and made a structural
part of" means any physical connection to an existing county long-
term medical care facility.
(2) An exemption shall not be granted under this section for
any portion of property otherwise qualifying for exemption under
this section if income or a benefit inures directly or indirectly
to an individual, private stockholder, or other private person from
the independent or nonessential operation of that portion of
property.
(3) As used in this section:
(a) "Nonprofit hospital" means 1 of the following:
(i) That portion of a building to which 1 of the following
applies:
(A) Is owned or operated by an entity exempt under section
501(c)(3) of the internal revenue code, 26 USC 501, that is
licensed as a hospital under part 215 of the public health code,
1978 PA 368, MCL 333.21501 to 333.21571.
(B) Is owned or operated by a governmental unit in which
medical attention is provided.
(C) Is owned or operated by an entity or entities exempt under
section 501(c)(2) or (3) of the internal revenue code, 26 USC 501,
in which medical attention is provided.
(ii) That portion of real property necessary and related to a
building described in subparagraph (i) in which medical attention
is provided.
(iii) A county long-term medical care facility, including any
addition to an existing county long-term medical care facility, if
the
addition is owned and operated by either the county or the
county long-term medical care facility and offers health services
provided by the county long-term medical care facility. For
purposes of this subparagraph, "addition" includes a freestanding
building as long as that freestanding building is operated under
the same license held by the county long-term medical care facility
and continues to offer the same health services as the county long-
term medical care facility in that freestanding building. An
exemption under this section shall be granted until January 1, 2008
regardless of whether the addition is licensed as a nursing home or
skilled nursing facility under part 217 of the public health code,
1978 PA 368, MCL 333.21701 to 333.21799e, or whether the addition
meets the requirements set forth in subsection (1).
(b) "Nonprofit hospital" does not include the following:
(i) A Except
as otherwise provided under subsection
(3)(a)(iii), a freestanding building or other real property of a
nursing home or skilled nursing facility licensed under part 217 of
the public health code, 1978 PA 368, MCL 333.21701 to 333.21799e.
(ii) A hospice licensed under part 214 of the public health
code, 1978 PA 368, MCL 333.21401 to 333.21420.
(iii) A home for the aged licensed under part 213 of the
public health code, 1978 PA 368, MCL 333.21301 to 333.21335.
(c) "Medical attention" means that level of medical care in
which a physician provides acute care or active treatment of
medical, surgical, obstetrical, psychiatric, chronic, or
rehabilitative conditions, that require the observation, diagnosis,
and daily treatment by a physician.
Enacting section 1. This amendatory act is retroactive and
effective for taxes levied after December 31, 2012.