STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 5638

January 22, 1980

TAXATION:

Property tax exemption

Charitable homes of fraternal or secret societies and nonprofit corporations whose stock are wholly owned by religious or fraternal societies are eligible for tax exemption under 1893 PA 206, Sec. 7, subsection (d), even though the charitable homes were not qualified, built or financed under 12 USC 1701q or 12 USC 1715z-1.

Honorable William A. Ryan

State Representative

The Capitol

Lansing, Michigan

You have requested my opinion on the following question:

1893 PA 206; MCLA 211.1 et seq; MSA 7.1 et seq, is known as the general property tax law. Section 7, subsection (d) of 1893 PA 206; MCLA 211.7(d); MSA 7.7(d), in pertinent part, provides:

A reading of 1893 PA 206, Sec. 7, subsection (d), supra, fails to disclose any requirement that a charitable home owned by fraternal or religious societies must be qualified, built or financed under 12 USC 1701q or 12 USC 1715z-1 in order to obtain the exemption from taxation.

While statutory exemptions from taxation are to be strictly construed, they should not be interpreted so as to defeat the legislative intent. Webb Academy v City of Grand Rapids, 209 Mich 523; 177 NW 290 (1920).

In a separate and distinct section added to the general property tax act by 1966 PA 312, 1893 PA 206, Sec. 7d, MCLA 211.7d; MSA 7.7(4a), the Legislature has provided a tax exemption for housing owned and operated by a nonprofit corporation for occupancy or use by elderly or handicapped families, provided that the housing facility or project was qualified, built or financed under 12 USC 1701q or 12 USC 1715z-1. 1893 PA 206, Sec. 7d, supra, should not be confused with 1893 PA 206, Sec. 7, subsection (d), since each of these sections is unconnected to and independent of the other, although each contains a separate exemption from taxation.

Moreover, it is most significant that when the Legislature last amended 1893 PA 206, Sec. 7d, supra, to add the specific references to 12 USC 1701q and 12 USC 1715z-1 thereto by means of 1978 PA 54, the Legislature by this amendatory act also amended 1893 PA 206, Sec. 7, subsection (d), supra, but did not add these requirements to 1893 PA 206, Sec. 7, subsection (d), supra. The failure of the Legislature to add these references to 1893 PA 206, Sec. 7, subsection (d), supra, confirms the legislative intent that charitable homes of fraternal or secret societies and nonprofit corporations whose stock is wholly owned by religious or fraternal societies are not required to be qualified, built or financed under either 12 USC 1701q or 12 USC 1715z-1 as a prerequisite to exemption from taxation.

It is, therefore, my opinion that charitable homes of fraternal or nonprofit corporations whose stock is wholly owned by fraternal or religious societies are eligible for tax exemption under 1893 PA 206, Sec. 7, subsection (d), supra, even though the charitable homes were not qualified, built or financed under 12 USC 1701q or 12 USC 1715z-1.

Frank J. Kelley