An Act to repeal 70.11 (4g) (c); to amend 70.11 (4g) (intro.), 70.11 (4g) (a) and 70.11 (4g) (b) of the statutes; Relating to: modifications to the property tax exemption for nonprofit organizations that sell property to low-income persons. (FE)
Impact
The bill specifies that property held for redevelopment is eligible for tax exemption, and it mandates that the nonprofit organization holding the property must be classified as a 501(c)(3) under the Internal Revenue Code. This change is expected to incentivize nonprofits to engage more readily in the development and sale of properties to low-income individuals, thereby potentially increasing affordable housing options in the state. This aligns with broader state goals of enhancing housing availability for economically disadvantaged groups.
Summary
Senate Bill 1048 aims to modify the existing property tax exemption for nonprofit organizations that sell property to low-income persons. Under the new provisions, the bill removes the requirement for prospective buyers to participate in the rehabilitation or construction of the property for it to be exempt from property taxes. Instead, it allows for an exemption if the nonprofit organization offers no-interest loans to low-income households to purchase the property, thus simplifying the process for potential buyers and organizations involved in providing affordable housing.
Contention
Although SB1048 is positioned as a beneficial change for fostering low-income homeownership, it may face contention from those who believe that removing the requirement for participation in rehabilitation work could undermine community involvement and investment in local properties. Critics may argue that such a change could lead to a lack of engagement from future homeowners in their potential properties, which might detract from community development efforts. Supporters, however, assert that it will enhance accessibility to housing solutions for low-income families.
Crossfiled
An Act to repeal 70.11 (4g) (c); to amend 70.11 (4g) (intro.), 70.11 (4g) (a) and 70.11 (4g) (b) of the statutes; Relating to: modifications to the property tax exemption for nonprofit organizations that sell property to low-income persons. (FE)
Relates to property tax exemptions for nonprofit organizations; allows for nonprofit organizations to file an application for an exemption with the assessor no later than the taxable status date applicable to the following year's assessment roll where such nonprofit organization has purchased property after the taxable status date but prior to the levy of taxes.
Relates to property tax exemptions for nonprofit organizations; allows for nonprofit organizations to file an application for an exemption with the assessor no later than the taxable status date applicable to the following year's assessment roll where such nonprofit organization has purchased property after the taxable status date but prior to the levy of taxes.
Relates to the payment of property taxes to municipalities by any nonprofit organization; requires nonprofit organizations that would typically be exempt from property taxes based on nonprofit status to pay 75 percent of its annual property taxes to the municipality in which it sits in order to offset the impact of the exemption.
Property tax: exemptions; exemption of real and personal property owned and occupied by a nonprofit corporation; modify. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).
Property tax: exemptions; exemption of real and personal property owned and occupied by a nonprofit corporation; modify. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).
Ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing.
Ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing.