http://www.michigan.gov/taxes/0,1607,7-238-43519_43528-155386--,00.html
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Michigan State Payment of Property Taxes for Senior Citizen and Disabled Housing Facilities
Table of Contents:
Finance and Accounting Division
* What's new
* Administration and general information
* Requirements for eligibility
* Documents to submit for consideration
* How payment in lieu of tax statements get paid, once facility is approved to be in program
* Note for assessors to establish taxable value of 2008
* Address to send information
* 4719, Request for Senior Citizen Cooperative Housing Tax Exemption PDF icon
* 4720, Annual Confirmation of Eligibility for Senior Citizen Cooperative Housing Tax Exemption Affidavit (Form available spring 2010)
* 4736, Payment in Lieu of Taxes Exemption Affidavit for Senior Citizen Cooperative Housing (Form available fall 2010)
* 2252, Tax Exemption Affidavit (TEA) form (filing for years prior to 2009) PDF icon
State Tax Commission
* Bulletin No. 16 of 2009 - Senior Citizens & Disabled Family Housing Exemption - December 4, 2009 PDF icon
* Principal Residence Exemption (PRE) Status of Senior Citizen and Disabled Housing Properties - February 3, 2010 PDF icon
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: Owners should submit the following documents to the local assessor to assist them in making a determination of eligibility. After the local assessor has determined eligibility under the law, copies of the documentation should be forwarded to the Department of Treasury:
* 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)
1. 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.
2. 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.
3. 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.
NOTE FOR ASSESSORS: Per the State Tax Commission, to establish 2010 year values review the following:
For the 2010 year an assessor will override the system and input the taxable value from 2008. The 2009 taxable value (which will now be incorrect) could have been corrected by taking it to the December Board of Review. If that option wasn't utilized, they may file a Notice of Omitted Property, Form 627 PDF icon with the Commission.
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
