MI SB0887

Housing with 8 or more residential units owned and operated by nonprofit corporations, limited dividend housing corporations, or government entities is exempt from property taxes if used solely for elderly or disabled families.

Property owners must claim exemptions on department of treasury forms, with local assessors approving or disapproving claims and notifying both the owner and state treasury of decisions.

State treasurer makes annual payments in lieu of taxes to local tax collecting units by December 15, calculated based on either 2008 tax year amounts for properties exempt before January 1, 2009, or taxable value multiplied by local mill rates for newly exempt properties, excluding school-specific mills.

Local tax collecting units distribute payments in the same proportions as general ad valorem taxes, excluding school education taxes, and may receive payments through electronic funds transfer.

Property exempt under this section cannot be forfeited, foreclosed, or sold for delinquent taxes during years of exemption, and the department of treasury has authority to appeal tax assessments in the Michigan tax tribunal.