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HOUSE BILL NO. 6067
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 34c (MCL 211.34c), as amended by 2012 PA 409.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 34c. (1) Not later than the first Monday in March in each 1
year, the assessor shall classify every item of assessable property 2
according to the definitions contained in this section. Following 3
the March board of review, the assessor shall tabulate the total 4
number of items and the valuations as approved by the board of 5
June 10, 2026, Introduced by Reps. Woolford, Greene, BeGole, Kelly, DeBoyer, Rigas, DeSana,
Borton and Alexander and referred to Committee on Agriculture.
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review for each classification and for the totals of real and 1
personal property in the local tax collecting unit. The assessor 2
shall transmit to the county equalization department and to the 3
state tax commission the tabulation of assessed valuations and 4
other statistical information the state tax commission considers 5
necessary to meet the requirements of this act and 1911 PA 44, MCL 6
209.1 to 209.8. 7
(2) The classifications of assessable real property are 8
described as follows: 9
(a) Agricultural real property includes parcels used partially 10
or wholly for agricultural operations, with or without buildings. 11
For taxes levied after December 31, 2002, agricultural real 12
property includes buildings on leased land used for agricultural 13
operations. If a parcel of real property is classified as 14
agricultural real property and is engaged in agricultural 15
operations, any contiguous parcel owned by the same taxpayer, that 16
is a vacant parcel, a wooded parcel, or a parcel on which is 17
located 1 or more agricultural outbuildings that comprise more than 18
50% of the taxable value of all buildings on that parcel as 19
indicated by the assessment records for the local tax collecting 20
unit in which that parcel is located, shall must be classified as 21
agricultural real property. Contiguity is not broken by a boundary 22
between local tax collecting units, a section boundary, a road, a 23
right-of-way, or property purchased or taken under condemnation 24
proceedings by a public utility for power transmission lines if the 25
2 parcels separated by the purchased or condemned property were a 26
single parcel prior to before the sale or condemnation. For 27
purposes of this subsection, contiguity requires that the parcel 28
classified as agricultural real property by reason of its 29
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agriculture use and the vacant parcel, wooded parcel, or parcel on 1
which is located 1 or more agricultural outbuildings must be 2
immediately adjacent to each other, without intervening parcels 3
that do not qualify for classification as agricultural real 4
property based on their actual agricultural use. It is the intent 5
of the legislature that if a parcel of real property is classified 6
as agricultural real property and is engaged in agricultural 7
operations, any contiguous parcel owned by the same taxpayer, that 8
is a vacant parcel, a wooded parcel, or a parcel on which is 9
located 1 or more agricultural outbuildings that comprise more than 10
50% of the taxable value of all buildings on that parcel as 11
indicated by the assessment records for the local tax collecting 12
unit in which that parcel is located, shall must be classified as 13
agricultural real property even if the contiguous parcels are 14
located in different local tax collecting units. Property shall 15
does not lose its classification as agricultural real property as a 16
result of an owner or lessee of that property implementing a 17
wildlife risk mitigation action plan or offering direct marketing 18
activities or on-site agritourism events conducted in furtherance 19
of agricultural operations. A parcel on which agricultural 20
operations occur that offers direct marketing activities or on-site 21
agritourism events is presumed to be agricultural real property 22
under this subdivision, and the burden of proving otherwise is on 23
the department of agriculture and rural development. As used in 24
this subdivision: 25
(i) "Agricultural outbuilding" means a building or other 26
structure primarily used for agricultural operations or a building 27
or other structure in which at least 50% of the square footage is 28
dedicated to storing or displaying agricultural products, or 29
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products that include agricultural ingredients or components, 1
produced on the parcel on which the building or other structure is 2
located in connection with agricultural operations conducted on the 3
parcel. Agricultural outbuilding includes a building or other 4
structure used for direct marketing activities or on-site 5
agritourism events, including value-added agricultural processes 6
such as pressing cider, making wine, crafting furniture from on-7
site logging, preparing foods from farm-raised beef and produce, 8
and selling these products in an on-farm store, if the building or 9
structure supports or complements agricultural operations. 10
(ii) "Agricultural operations" means the following: 11
(A) Farming in all its branches, including cultivating soil. 12
(B) Growing and harvesting any agricultural, horticultural, or 13
floricultural commodity. 14
(C) Dairying. 15
(D) Raising livestock, bees, fish, fur-bearing animals, or 16
poultry, including operating a game bird hunting preserve licensed 17
under part 417 of the natural resources and environmental 18
protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also 19
including farming operations that harvest cervidae on site where 20
not less than 60% of the cervidae were born as part of the farming 21
operation. As used in this subparagraph, "livestock" includes, but 22
is not limited to, cattle, sheep, new world camelids, goats, bison, 23
privately owned cervids, ratites, swine, equine, poultry, 24
aquaculture, and rabbits. Livestock does not include dogs and cats. 25
(E) Raising, breeding, training, leasing, or boarding horses. 26
(F) Turf and tree farming. 27
(G) Performing any practices on a farm incident to, or in 28
conjunction with, farming operations. A commercial storage, 29
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processing, distribution, marketing, or shipping operation is not 1
part of agricultural operations. 2
(iii) "Direct marketing activities" means the sale of farm 3
products or commodities directly to the public at or near the place 4
of production, including through farm markets, roadside stands, U-5
pick operations, farm-to-table dining, or similar activities. For 6
purposes of this subparagraph, a farm product is produced by a farm 7
if the finished product meets either of the following: 8
(A) At least 50% of the finished product ingredients were 9
produced by the farm. 10
(B) At least 50% of a key ingredient in the finished product 11
was produced by the farm. This sub-subparagraph includes, for 12
example, blueberry muffins in which at least 50% of the blueberries 13
were produced by the farm. 14
(iv) "On-site agritourism event" means an activity conducted on 15
a farm that allows members of the public to experience or 16
participate in agricultural life for recreation, education, or 17
direct marketing purposes, including, but not limited to, farm 18
markets, tours, U-pick operations, demonstrations or classes 19
involving the use of farm products, seasonal festivals, and 20
weddings or other events that promote agricultural products or 21
operations. 22
(v) (iii) "Project" means certain risk mitigating measures, 23
which may include, but are not limited to, the following: 24
(A) Making it difficult for wildlife to access feed by storing 25
livestock feed securely, restricting wildlife access to feeding and 26
watering areas, and deterring or reducing wildlife presence around 27
livestock feed by storing feed in an enclosed barn, wrapping bales 28
or covering stacks with tarps, closing ends of bags, storing grains 29
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in animal-proof containers or bins, maintaining fences, practicing 1
small mammal and rodent control, or feeding away from wildlife 2
cover. 3
(B) Minimizing wildlife access to livestock feed and water by 4
feeding livestock in an enclosed area, feeding in open areas near 5
buildings and human activity, removing extra or waste feed when 6
livestock are moved, using hay feeders to reduce waste, using 7
artificial water systems to help keep livestock from sharing water 8
sources with wildlife, fencing off stagnant ponds, wetlands, or 9
areas of wildlife habitats that pose a disease risk, and keeping 10
mineral feeders near buildings and human activity or using devices 11
that restrict wildlife usage. 12
(vi) (iv) "Wildlife risk mitigation action plan" means a written 13
plan consisting of 1 or more projects to help reduce the risks of a 14
communicable disease spreading between wildlife and livestock that 15
is approved by the department of agriculture and rural development 16
under the animal industry act, 1988 PA 466, MCL 287.701 to 287.746. 17
(b) Commercial real property includes the following: 18
(i) Platted or unplatted parcels used for commercial purposes, 19
whether wholesale, retail, or service, with or without buildings. 20
(ii) Parcels used by fraternal societies. 21
(iii) Parcels used as golf courses, boat clubs, ski areas, or 22
apartment buildings with more than 4 units. 23
(iv) For taxes levied after December 31, 2002, buildings on 24
leased land used for commercial purposes. 25
(c) Developmental real property includes parcels containing 26
more than 5 acres without buildings, or more than 15 acres with a 27
market value in excess of its value in use. Developmental real 28
property may include farm land or open space land adjacent to a 29
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population center, or farm land subject to several competing 1
valuation influences. 2
(d) Industrial real property includes the following: 3
(i) Platted or unplatted parcels used for manufacturing and 4
processing purposes, with or without buildings. 5
(ii) Parcels used for utilities sites for generating plants, 6
pumping stations, switches, substations, compressing stations, 7
warehouses, rights-of-way, flowage land, and storage areas. 8
(iii) Parcels used for removal or processing of gravel, stone, 9
or mineral ores. 10
(iv) For taxes levied after December 31, 2002, buildings on 11
leased land used for industrial purposes. 12
(v) For taxes levied after December 31, 2002, buildings on 13
leased land for utility purposes. 14
(e) Residential real property includes the following: 15
(i) Platted or unplatted parcels, with or without buildings, 16
and condominium apartments located within or outside a village or 17
city, which that are used for, or probably will be used for, 18
residential purposes. 19
(ii) Parcels that are used for, or probably will be used for, 20
recreational purposes, such as lake lots and hunting lands, located 21
in an area used predominantly for recreational purposes. 22
(iii) For taxes levied after December 31, 2002, a home, cottage, 23
or cabin on leased land, and a mobile home that would be assessable 24
as real property under section 2a except that the land on which it 25
is located is not assessable because the land is exempt. 26
(f) Timber-cutover real property includes parcels that are 27
stocked with forest products of merchantable type and size, cutover 28
forest land with little or no merchantable products, and marsh 29
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lands or other barren land. However, when a typical purchase of 1
this type of land is for residential or recreational uses, the 2
classification shall must be changed to residential. 3
(3) The classifications of assessable personal property are 4
described as follows: 5
(a) Agricultural personal property includes any agricultural 6
equipment and produce not exempt by law. 7
(b) Commercial personal property includes the following: 8
(i) All equipment, furniture, and fixtures on commercial 9
parcels, and inventories not exempt by law. 10
(ii) All outdoor advertising signs and billboards. 11
(iii) Well drilling rigs and other equipment attached to a 12
transporting vehicle but not designed for operation while the 13
vehicle is moving on the highway. 14
(iv) Unlicensed commercial vehicles or commercial vehicles 15
licensed as special mobile equipment or by temporary permits. 16
(c) Industrial personal property includes the following: 17
(i) All machinery and equipment, furniture and fixtures, and 18
dies on industrial parcels, and inventories not exempt by law. 19
(ii) Personal property of mining companies. 20
(d) For taxes levied before January 1, 2003, residential 21
personal property includes a home, cottage, or cabin on leased 22
land, and a mobile home that would be assessable as real property 23
under section 2a except that the land on which it is located is not 24
assessable because the land is exempt. 25
(e) Utility personal property includes the following: 26
(i) Electric transmission and distribution systems, substation 27
equipment, spare parts, gas distribution systems, and water 28
transmission and distribution systems. 29
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(ii) Oil wells and allied equipment such as tanks, gathering 1
lines, field pump units, and buildings. 2
(iii) Inventories not exempt by law. 3
(iv) Gas wells with allied equipment and gathering lines. 4
(v) Oil or gas field equipment stored in the open or in 5
warehouses such as drilling rigs, motors, pipes, and parts. 6
(vi) Gas storage equipment. 7
(vii) Transmission lines of gas or oil transporting companies. 8
(4) For taxes levied before January 1, 2003, buildings on 9
leased land of any classification are improvements where the owner 10
of the improvement is not the owner of the land or fee, the value 11
of the land is not assessed to the owner of the building, and the 12
improvement has been assessed as personal property pursuant to 13
under section 14(6). 14
(5) If the total usage of a parcel includes more than 1 15
classification, the assessor shall determine the classification 16
that most significantly influences the total valuation of the 17
parcel. 18
(6) An owner of any assessable property who that disputes the 19
classification of that parcel shall notify the assessor and may 20
protest the assigned classification to the March board of review. 21
An owner or assessor may appeal the decision of the March board of 22
review by filing a petition with the state tax commission not later 23
than June 30 in that tax year. The state tax commission shall 24
arbitrate the petition based on the written petition and the 25
written recommendations of the assessor and the state tax 26
commission staff. An appeal may not be taken from the decision of 27
the state tax commission regarding classification complaint 28
petitions and the state tax commission's determination is final and 29
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binding for the year of the petition. 1
(7) The department of treasury may appeal the classification 2
of any assessable property to the residential and small claims 3
division of the Michigan tax tribunal not later than December 31 in 4
the tax year for which the classification is appealed. 5
(8) This section shall must not be construed to encourage the 6
assessment of property at other than the uniform percentage of true 7
cash value prescribed by this act. 8
(9) The assessor of each city or township in which is located 9
property that is subject to payment in lieu of taxes under subpart 10
14 of part 21 of the natural resources and environmental protection 11
act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place that 12
property on an assessment roll that is separate from the assessment 13
roll prepared under section 24. For purposes of calculating the 14
debt limitation imposed by section 11 of article VII of the state 15
constitution of 1963, the separate assessment roll for property 16
that is subject to payment in lieu of taxes under subpart 14 of 17
part 21 of the natural resources and environmental protection act, 18
1994 PA 451, MCL 324.2152 to 324.2154, required by this subsection 19
shall must be combined with the assessment roll prepared under 20
section 24. 21