MI SB1250

Exempts new construction or replacement construction on eligible property (real property with existing structures) from property tax collection from the bill's effective date through December 31 of the immediately succeeding year, with exemption not included in assessment until ownership transfer triggers taxable value adjustment under section 27a(3).

Provides new construction on development property (vacant real property with no structures) a tax exemption lasting until December 30 of the second year following the bill's effective date or until the construction is no longer located on development property, whichever occurs first.

Requires owners of development property to file an affidavit claiming the exemption by May 1 on a form prescribed by the Department of Treasury, with the assessor determining eligibility and granting exemptions for 12 months or until development status changes.

Imposes a $5.00 per day penalty (maximum $200.00) on owners who fail to file a rescission form within 90 days of exempted construction no longer being located on development property, collected under the General Sales Tax Act and deposited into the state school aid fund, with waiver authority granted to the Department of Treasury.

Allows owners to request exemption withdrawal and establishes appeal procedures before the board of review and Michigan Tax Tribunal, with provisions for corrected tax bills and penalty/interest relief if payment is made within 30 days.