Table of Contents:
WHAT'S NEW: The Department of Treasury will be
implementing PA 585 of 2008 fully for tax year 2010. Form 2252, Tax Exemption
Affidavit should be filed for summer and winter 2009.
Public Act 585 of 2008 was signed by the governor on January 20, 2009. It
requires facilities owners to file Form 4719, Request for Senior Citizen
Cooperative Housing Tax Exemption with the local assessor before December 31,
2009 to claim an exemption. Facility owners will need to file the Annual
Confirmation of Eligibility for Senior Citizen Cooperative Housing Tax Exemption
Affidavit by May 1 of each subsequent tax year beginning with May 1, 2010. All
facility owners should be aware that if the Annual Confirmation of Eligibility
for Senior Citizen Cooperative Housing Tax Exemption Affidavit is not filed by
May 1, 2010, and every year thereafter, the State of Michigan will not pay the
tax liability for the year in which the Affidavit was not received. The
exemption is revoked for non filing and the facility owner will be
responsible for paying the tax liability for that tax year.
As required by law, each facility must reapply for exemption during
the 2009 tax year for the tax year ending 2009. New and existing facilities can
apply any time during 2009, as soon as forms are available, so that their
exemption can be approved by December 31, 2009 for the 2010 tax year.
GENERAL INFORMATION:
The Department of Treasury, Finance and Accounting Division is responsible
for payment in lieu of property taxes for senior citizen and disabled housing
facilities under Section 211.7d of the Michigan Compiled Laws. There are
currently about 175 senior citizen and disabled housing facilities that have
their local municipality reimbursed under this exemption for their property
taxes as a payment in lieu of taxes under this law. A facility is determined by
the local assessor to be eligible for this exemption under the law. The facility
and the Michigan Department of Treasury are notified in writing by the assessor
of the facilities approval or disapproval of being eligible for the exemption.
Only facilities that have been approved by the local assessor and Department
of Treasury as being eligible for the exemption and having submitted their 4720,
Annual Confirmation of Eligibility for Senior Citizen Cooperative Housing Tax
Exemption Affidavit may have a payment in lieu of tax submitted for payment. The
state will only pay real and personal property taxes, not administrative fees,
special assessments or penalty and interest fees.
Submission of the first payment in lieu of tax is dependent upon when the
facility applies for the exemption. The 4719, Request for Senior Citizen
Cooperative Housing Tax Exemption begins December 31 of the year in which the
exemption is being requested. The facility has to have been occupied on December
31 of the year for which an exemption is being requested. The owner of the
facility must submit a 4720, Annual Confirmation of Eligibility for Senior
Citizen Cooperative Housing Tax Exemption Affidavit, which is due May 1. If the
Annual Confirmation Affidavit is not submitted by May 1 the property exemption
is revoked and the property shall be assessed and shall be subject to the
collection of taxes becoming the facility owners' responsibility.
For example, the facility is constructed and has the first resident move in
on March 15, 2009 or ownership changes to a type that now qualifies for the
program. The owner would need to submit a 4719, Request for Senior Citizen
Cooperative Housing Tax Exemption, to the local assessor, which begins December
31 of the year the exemption is requested. The owner would need to submit a
4720, Annual Confirmation of Eligibility for Senior Citizen Cooperative Housing
Tax Exemption Affidavit no later than May 1, 2010; the first payment in lieu of
tax to be considered for payment by the State would be the statement due from
the local treasurer December 1, 2010. The State continues payment of property
taxes as long as eligibility requirements are met and proper forms are submitted
as required.
REQUIREMENTS:
M.C.L. 211.7d
has enabled the State of Michigan to pay the property taxes as a payment in
lieu of taxes of senior citizen and disabled housing facilities that satisfy the
following criteria:
- The housing must be owned and operated by a non-profit corporation or
association, by a limited dividend housing corporation, not otherwise
tax-exempt;
- The housing must be occupied solely (with the exception of a caretaker) by
the elderly 62 years of age, as defined in Section 202 of the title II of the
housing act of 1959, or the disabled, as defined in Section 811 of subtitle B
of title VIII of the Cranston-Gonzalez national affordable housing act;
- The housing must consist of 8 or more residential units in 1 or more
structures;
- The housing must have been qualified, built or financed under Section 202,
236 or 811 of the National Housing Act.
- "Housing" means new or rehabilitated structures with 8 or more residential
units in 1 or more structures.
4719, Request for Senior Citizen Cooperative Housing Tax Exemption (completed
by owner)
DOCUMENTATION FOR SUBMISSION: After the local
assessor has determined eligibility under the law, facilities requesting to be
in the program must submit the following documents to the Department for review;
if local assessor has not:
- A copy of the owner's Articles of Incorporation, showing nonprofit status
or limited dividend housing corporation;
- A copy of the HUD Mortgage, or other documentation, showing that the
facility was financed, or qualified for financing under Section 202, 236 or
811;
- Documentation showing that the facility contains at least eight units;
- A copy of the Occupancy Permit, along with a statement giving the date the
first resident actually moved into the facility;
- Documentation showing New or rehabilitated structures.
- General information regarding the facility, including its name, address
and phone number and the name, address and phone number of its management
company.
4720, Annual Confirmation of Eligibility for Senior Citizen Cooperative
Housing Tax Exemption Affidavit form (completed by owner, due annually May 1)
- The owner of a facility with an approved exemption must annually submit
the 4720, Annual Confirmation of Eligibility for Senior Citizen Cooperative
Housing Tax Exemption Affidavit (completed by owner, due annually May 1) to
retain the exemption. This form is submitted to the Michigan Department of
Treasury and the assessor of the local tax collection unit.
- If the form is not submitted by May 1 the property exemption is revoked
and the property shall be assessed and shall be subject to the collection of
taxes; becoming the owners' responsibility.
PAYMENT IN LIEU OF TAX STATEMENT: If approved, the
procedure for submitting payment in lieu of tax statements to the State for
payment is as follows:
4736, Payment in Lieu of Taxes Exemption Affidavit for Senior Citizen
Cooperative Housing (completed by treasurer)
- Local treasurer completes form 4736, Payment in Lieu of Taxes Exemption
Affidavit for Senior Citizen Cooperative Housing. A breakdown of millage rates
must be supplied. Please note that millage rates of up to 18 mills for school
operating and 6 mills for State Education Tax should not be billed or
assessed, these taxes are excluded from billing. (refer to MCL 211.7d section
(4)(d)). Forms and tax statements are due December 1.
- The taxable value for properties already exempt under this section must be
the taxable value on the assessment roll in the 2008 tax year. For new
exemption requests; the taxable value of the property should be the value on
the assessment roll in the year in which a claim for exemption is made or for
new construction the property's taxable value on the assessment roll in the
year in which construction is completed and a certificate of occupancy issued.
- The local treasurer will send the completed form with original signatures
and copies of the real and/or personal payment in lieu of tax statement to be
paid to the Department of Treasury address listed below. Millage rates must be
included on the statement or they may not be paid timely, these millage rates
can be on a separate sheet, if necessary.
PROPERTY TAX CREDIT FOR RESIDENCE: Since the State of
Michigan is making payments in lieu of taxes on the facility, its residents are
not eligible for a Property Tax Credit when filing their state income tax
return.
All requests to be considered for eligibility into this program should be
mailed to:
Michigan Department of Treasury
Finance and Accounting Division
430 W. Allegan Street
Lansing, MI 48922
(517) 373-3165
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