February 24th, 2012 10:09 AM by Eileen Denhard
Construction Inventory Tax Relief on the Move
Legislationintended to provide property tax exemptions to inventory and spec homes in newdevelopments has been introduced. House bill 4134, sponsored by REALTOR®member and State Representative Margaret O’Brien (R-Portage) aims toprovide new builds and inventory in developments with a lower tax assessmentuntil those properties are occupied. The new builds will be taxes as unimprovedland so long as they satisfy the following criteria:
• Theproperty is not occupied and has never been occupied; • The property is available for sale. The exemption lasts until thenew construction is no longer located on development property.• The legislation is not retroactive and will apply to all new specbuilds after the effective date.
Recently, the MARPublic Policy Committee met and reviewed the legislation, and voted to supportthe bill. The Michigan Association of Homebuilders views this legislation as acost savings measure, as well as a jobs issue that would allow builders tocreate product and carry it at a lower tax rate until it sells.
The bill isscheduled to be voted on this week in the House Tax Policy committee.
Source – MichiganAssociation of Realtors