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.