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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5701 May 5, 1980 TAXATION: Exception of lands owned and used by an intercounty drainage district DRAIN CODE: Lands of intercounty drainage district. Lands owned by an intercounty drainage district and used for drain purposes are exempt from ad valorem property taxes. Harry L. Mikan Soil and Water Management Division Department of Agriculture Lewis Cass Building Lansing, Michigan 48901 You have asked whether lands owned by an intercounty drainage district are exempt from ad valorem property taxes. The general property tax act, 1893 PA 206, Sec. 1; MCLA 211.1 et seq; MSA 7.1 et seq, states that 'all property, real and personal, within the jurisdiction of this state, not expressly exempted, shall be subject to taxation'. Certain exemptions are set forth in 1893 PA 206, Sec. 7; MCLA 211.7; MSA 7.7, which, in pertinent part, provides: 'The following property shall be exempt from taxation 'Third, property owned by or being acquired pursuant to an installment purchase agreement by a county, township, city, village or school district used for public purposes and property owned or being acquired by an agency, authority, instrumentality, non-profit corporation, commission, or other separate legal entity comprised solely of, or which is wholly owned by, or whose members consist solely of one or a combination of political subdivisions or a combination of political subdivisions in the state and is used to carry out a public purpose itself or on behalf of such political subdivisions or combination . . .' (Emphasis added.) An intercounty drainage district is a public corporation, in accordance with the Drain Code of 1956, 1956 PA 40, Sec. 5; MCLA 280.5; MSA 11.1005, which provides: 'Any drainage district heretofore or hereafter established shall be a body corporate with power to contract, to sue and be sued, and to hold, manage and dispose of real and personal property, in addition to any other powers conferred upon it by law. The foregoing provision shall apply to all drainage districts including those established under chapters 20 and 21 of this act or under chapter 18 and 18(a) of Act No. 315 of the Public Acts of 1923, as amended.' The drainage board of an intercounty drainage district is a board composed of the director of the state department of agriculture and the drain commissioners of each county involved in the project. Such a board is authorized to initiate condemnation proceedings to acquire necessary lands and rights of way pursuant to 1911 PA 149; MCLA 213.2 et seq; MSA 8.11 et seq and when acting in this capacity is deemed to be a 'state agency', 1956 PA 40, Sec. 522; MCLA 280.522; MSA 11.1522. It is, therefore, my opinion that lands owned by an intercounty drainage district and used for drain purposes are exempt from ad valorem property taxation. Frank J. Kelley Attorney General
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