Advocacy Update

Forrest Wall, CAE, guiding Governor Rick Snyder through the ballroom at the Association’s Awards Program and Economic Forecast where the Governor was honored with the Distinguished Service Award in Government.

Forrest Wall, CAE, guiding Governor Rick Snyder through the ballroom at the Association’s Awards Program and Economic Forecast where the Governor was honored with the Distinguished Service Award in Government.

Written by Forrest Wall, CAE, Staff Vice President and Industry Relations

Proposal to Change Property Tax Formula for Rental Property Resurfaces

For the past several years AAM has worked in concert with other rental property groups on legislation stemming from a 2002 Michigan Supreme Court decision regarding commercial rental property tax valuation. Under the General Property Tax Act the terms “losses” and “additions” include decreases and increases in a property’s occupancy rate. In WPW Acquisition v. City of Troy, the Michigan Supreme Court held that an increase in taxable value attributable to an increase in a property’s occupancy was unconstitutional. Because the decision did not address decreases in taxable value due to occupancy declines, there was an attempt to provide a legislative solution to clarify the issue. Initially, the legislative proposal focused on simply eliminating occupancy as a part of the formula. An alternative idea was then proposed to exempt commercial rental property from general ad valorem property taxes and create a specific tax for commercial rental property which would include occupancy in the tax formula. The discussion on this issue will now renew in this legislative session with the introduction of Senate Bill 114, which follows the initial proposal to remove occupancy from the formula as of a certain date.  The legislation has been referred to the Senate Committee on Finance, and AAM will keep you apprised of further developments.

Are Your Company Trucks In Compliance?
If you operate a truck in your business, there is a good chance all or some of the state and federal trucking regulations apply to you.  Recently enacted legislation in Michigan – Public Act 231 of 2012 – has amended the Michigan Motor Carrier Safety Act to exempt certain vehicles, but also provide that these vehicles remain subject to federal regulation. On April 23, HBA and AAM will host a free seminar covering this issue, including requirements for USDOT numbers, proper licensing, and much more. You can register for the program at www.builders.org.

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