Want to know the trick behind Property Tax?Submitted by juliusbragg on Sun, 02/27/2011 - 20:26
What is "Real Property"? What is "Private Property"? Are they the same?
Not according to the Michigan Constitution.
- ARTICLE X Property
§ 1 Disabilities of coverture abolished; separate property of wife; dower.
Sec. 1. The disabilities of coverture as to property are abolished. The real and personal
estate of every woman acquired before marriage and all real and personal property to which
she may afterwards become entitled shall be and remain the estate and property of such
woman, and shall not be liable for the debts, obligations or engagements of her husband, and
may be dealt with and disposed of by her as if she were unmarried. Dower may be relinquished
or conveyed as provided by law.
History: Const. 1963, Art. X, §1, Eff. Jan. 1, 1964.
Former Constitution: See Const. 1908, Art. XVI, §8.
§ 2 Eminent domain; compensation.
Sec. 2. Private property shall not be taken for public use without just compensation therefore
being first made or secured in a manner prescribed by law. If private property consisting of an
individual’s principal residence is taken for public use, the amount of compensation made and
determined for that taking shall be not less than 125% of that property’s fair market value, in
addition to any other reimbursement allowed by law. Compensation shall be determined in
proceedings in a court of record.
“Public use” does not include the taking of private property for transfer to a private entity
for the purpose of economic development or enhancement of tax revenues. Private property
otherwise may be taken for reasons of public use as that term is understood on the effective
date of the amendment to this constitution that added this paragraph.
Here we see the use of "real property" and "private property" both within Article X
Now, in Article IX "Property Tax"
ARTICLE IX Property Taxation
§ 3 Property taxation; uniformity; assessments; limitations; classes; approval of legislature.
The legislature shall provide for the uniform general ad valorem taxation of real and tangible personal property not exempt by law except for taxes levied for school operating purposes. The legislature shall provide for the determination of true cash value of such property; the proportion of true cash value at which such property shall be uniformly assessed, which shall not, after January 1, 1966, exceed 50 percent; and for a system of equalization of assessments. For taxes levied in 1995 and each year thereafter, the legislature shall provide that the taxable value of each parcel of property adjusted for additions and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, as defined in section 33 of this article, or 5 percent, whichever is less until ownership of the parcel of property is transferred. When ownership of the parcel of property is transferred as defined by law, the parcel shall be assessed at the applicable proportion of current true cash value. The legislature may provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation. Every tax other than the general ad valorem property tax shall be uniform upon the class or classes on which it operates. A law that increases the statutory limits in effect as of February 1, 1994 on the maximum amount of ad valorem property taxes that may be levied for school district operating purposes requires the approval of 3/4 of the members elected to and serving in the Senate and in the House of Representatives.
Now lets look at the Property Tax act:
THE GENERAL PROPERTY TAX ACT (EXCERPT)
Act 206 of 1893
211.1 Property subject to taxation.
That all property, real and personal, within the jurisdiction of this state, not expressly exempted, shall be subject to taxation.
Here's how it works. You buy land, and then without question, you record the property with the State. This process is not mandatory, therefore it is a privilege. The State now has an interest in the land, and the 'duty' of 'protecting it' fee simple. This is why you need the States permission to alter the property. The property is not a direct tax on the land, it is a uniform indirect tax on the activity of the State pursuant to your request.
Once you register it or record it with the State, they put your one "Private Property" into a Taxable class, either Residential, Commercial, Agricultural or Industrial, and you become the tenant. The Michigan Constitution and Tax Code (and probably other States too) use the terms Real and Private carefully...but you know what they say:
- "When Congress includes a specific term in one section of a statute but omits it in another section of the same Act, it should not be implied where it is excluded." Arizona Elec. Power Co-op. v. United States, 816 F.2d 1366, 1375 (9th Cir. 1987); see also West Coast Truck Lines, Inc. v. Arcata Community Recycling Ctr., 846 F.2d 1239, 1244 (9th Cir. 1988), cert. denied, 488 U.S. 856 (1988).
An un-apportioned direct tax on Private Property is unconstitutional...therefore the States MUST find a way to trick you into converting your "private Property" into "Real Property"...or simply have the Property tax be a uniform Indirect tax on an avoidable activity.