Ugh. These bills . . . well, the concept is good
anyway. There is a five-bill package that creates the use-based taxation
system. At the heart of the matter is whether land eligible for that tax
break will be kept in agricultural production or whether it will ultimately be
developed. If it is the latter there must be method to recoup the
investment the people are making in farmland protection. The recapture
provision in the Senate package is terrible. Rumor is the House will
introduce similar legislation next week . . . with only slightly better
recapture language. Preliminary analysis shows recapture taxation equaling
a mere $5 per acre in some areas, as little as 0.05 percent of the market value
of the land.
The bills can be view on the web:
SB 709
(Goschka) creates a property tax exemption for transfer of land between
family members, specifically parents to children. http://www.michiganlegislature.org/isapi/nls_ax.dll/billStatus?LegSession=1999-2000&DocType=SB&BillNum=0709
SB
1245 (Emmons) amends the tax code to implement use value taxation for
agricultural land. very long (89 pages) very dry. http://www.michiganlegislature.org/isapi/nls_ax.dll/billStatus?LegSession=1999-2000&DocType=SB&BillNum=1245
SB
1246 (McManus) is the recapture legislation. Essentially the
state would recapture only a small portion of the tax benefit acrued to farmland
purchased for development. http://www.michiganlegislature.org/isapi/nls_ax.dll/billStatus?LegSession=1999-2000&DocType=SB&BillNum=1246
SB
1247 (Sikkema) is perhaps the best and most meaningful part of the
package. It creates the Agricultural Preservation Fund, which takes the
recaptured tax money and leverages it against local contributions to implement
purchase of development rights programs at the county level. http://www.michiganlegislature.org/isapi/nls_ax.dll/billStatus?LegSession=1999-2000&DocType=SB&BillNum=1247
SJR
M (Stille) actually amends the state Constitution to allow ag use value
assesment. http://www.michiganlegislature.org/isapi/nls_ax.dll/BillStatus?DocType=SJR&BillNum=M&LegSession=1999
The Michigan Land Use Institute is helping prepare an analysis of the bills and their recapture packages. Several substantive questions remain for us to explore, among them: 1) will this program ultimately result in extending land speculation into rural areas and hence hastening urban sprawl?, 2) does this program substantively address the critical issue of profitability of the ag industry?, and 3) in amending the Constitution are we opening a door to future land speculation when an equally success program could be designed legislatively?
These bills are on the fast track. The Senate resolution must be passed before the Legislature leaves in early June in order to for it to be place on the November ballot. If this program is going to be done right everyone should contact their legislators and insist that SJR M not be passed until the Governor has signed a recapture provision that adequate blocks land speculation and simultaneously give solid funding the local PDR programs. This the absolute minimum that should be acceptable to the anti-sprawl community.
As more info becomes available I'll happily keep everyone posted and involved!
Conan
Conan Smith
Land Programs Director
Michigan
Environmental Council
119 Pere Marquette, Suite 2A
Lansing, MI
48912
p. (517) 487-9539
f. (517)
487-9541
www.mienv.org
conanmec@voyager.net
-----Original
Message-----
From: owner-smartgrowth-washtenaw@great-lakes.net
[mailto:owner-smartgrowth-washtenaw@great-lakes.net]On
Behalf Of Jeff
Surfus
Sent: Friday, May 05, 2000 1:54 PM
To:
smartgrowth-washtenaw
Subject: Re: SG-W:/ use-based tax
This, on
the surface, appears to be good news. Has anyone done some
analysis of
these bills? Are they the best we can hope for? Should we
be
aggressively advocating for their passage? More info is definitely
needed
but a statewide effort to lobby for its passage should be underway, if
it is
indeed a good set of bills. Perhaps we can get some advice from
MEC, but a
use-based tax for farmland would be a HUGE step in the right
direction.
Jeff Surfus
----- Original Message -----
From:
Vivienne Armentrout <varmentrout000@ameritech.net>
To:
smartgrowth-washtenaw <smartgrowth-washtenaw@great-lakes.net>
Sent:
Friday, May 05, 2000 11:53 AM
Subject: SG-W:/ use-based tax
> A
press release is available (I don't have a document or online version
>
but the phone contact is Gary Henderson, 517-373-1725) about a new
>
package of bills coming from the State Senate on use-based tax for
>
farmland. It is not clear to me where these are in the House.
The
> 4-bill package is led by Senate Resolution M (Stille), which
would
> require a 2/3 vote and approval by the voters in a referendum,
because
> it is a constitutional amendment calling for taxation of
farmland at
> current use, rather than highest-and-best. The other 3
bills are
> tie-barred to the amendment and implement it, as well as
providing for
> repayment of tax savings (if land is sold) to an
agricultural
> preservation bill, similar to the PA 116 program. The
package hasn't
> been passed by the Senate yet but Engler has endorsed the
concept.
>
>
>
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