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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. 6350 March 26, 1986 FIREMEN AND FIRE DEPARTMENTS: Registration plates of vehicles utilized by a joint fire administrative board Source of authority of a joint fire administrative board Property utilized by a joint fire administrative board exempt from taxation MOTOR VEHICLES: Registration plates for vehicles utilized by a joint fire administrative board TAXATION: Exempt status of property utilized by a joint fire administrative board A joint fire administrative board created by an interlocal agreement of contiguous townships, incorporated villages, or cities derives its powers and duties from the contractual agreement, arrangement, or understanding of the participating municipalities. Property utilized by a fire department under the control of a joint fire administrative board would be exempt from taxation on the same basis as the property of its parent municipalities. A joint fire administrative board is authorized to use municipal motor vehicle registration plates. Honorable John Strand State Representative The Capitol Lansing, Michigan You have requested my opinion on three questions regarding joint fire administrative boards, the first of which is: Does a joint fire administrative board derive its authority from the contractual agreement by which it is established, or as a corporate body? The township fire protection act, MCL 41.811; MSA 5.2640(11), provides for the establishment of joint fire administrative boards: '(1) The governing bodies of 2 or more contiguous townships, incorporated villages, or cities may, acting jointly, create a joint fire administrative board . . .. . . .. '(3) A joint fire administrative board created pursuant to this section shall prepare an annual fire department budget for the fire department of each participating township, incorporated village, or city to be submitted to the respective governing bodies. The proposed budgets shall be reviewed by the governing bodies and may be amended, adopted, or rejected by them. A joint fire administrative board shall have other powers and duties as considered necessary by the participating governing bodies.' (Emphasis added.) The powers of a joint fire administrative board are also provided for by MCL 41.806; MSA 5.2640(6): 'The township board of any township or towhships acting jointly, where appropriations have been made as herein provided, shall have the power to establish and maintain a fire department; to organize and maintain fire companies; to employ and appoint a chief and such firemen and officers as shall be required for the proper and efficient operation and maintenance of the department; to make and establish rules and regulations for the government of the department, employees, firemen and officers thereof and for the care and management of the engines, apparatus, property and buildings pertaining to the department, and for the prescribing of the powers and duties of such employees, officers and firemen. The township board of boards of any township or townships may contract with the township board or legislative body of any township, city or village which maintains a fire department for the service thereof or for the care, maintenance and operation of said apparatus and equipment by the fire department of such township, city or village, upon such terms as may be agreed upon and may contract with the legislative body of any village which does not maintain a fire department to furnish fire protection to the village upon such terms as may be agreed upon. Any or all of the foregoing powers, at the discretion of the township board, may be delegated to a police or fire administrative board duly created and established according to law. 'Any township board or boards of 2 or more townships acting jointly, which have organized and are maintaining a fire department may also contract with other such township board or boards, or legislative bodies of townships, villages or cities which also maintain a fire department or with any person, organization or group to provide fire apparatus, equipment, personnel or fire protection.' (Emphasis added.) Joint fire administrative boards have those powers indicated in MCL 41.806; MSA 5.2640(6), and MCL 41.811; MSA 5.2640(11), and may have such additional powers as are considered necessary and as are delegated by the respective governing bodies which established the joint fire administrative board. Such joint functions or activities between local units of government may be implemented by interlocal agreements. See, for example, the inter-governmental contracts between municipal corporations act, MCL 124.1 et seq; MSA 5.4081 et seq; the inter-governmental transfers of functions and responsibilities act, MCL 124.531 et seq; MSA 5.4087(1) et seq; and the Urban Cooperation Act of 1967, MCL 124.501 et seq; MSA 5.4088(1) et seq. See also, Const 1963, art 7, Sec. 28, which these statutes implement. The terms and conditions of such an interlocal agreement would specify the manner in which the board would be structured, and the powers and duties delegated by the parties to the agreement. Under the Urban Cooperation Act of 1967 the joint exercise of powers may be administered by one or more of the parties as specified in the agreement, or a separate legal entity could be established as a commission, board, or council, which would possess the common power as specified in the agreement. See, MCL 124.507; MSA 5.4088(7). The township fire protection act contains no provision for the establishment of a public body corporate. Thus, a joint fire administrative board would not be a public body corporate unless such status was established pursuant to legislation, such as the Urban Cooperation Act. In either event, a joint fire administrative board acquires those powers and duties which are specified in the township fire protection act and which are conferred upon it by the governing bodies of the local units of government participating in the joint activity; those powers are conferred in the contract or interlocal agreement providing for the joint activity. It is my opinion, therefore, that a joint fire administrative board derives its authority from the contractual agreement, arrangement or understanding made pursuant to law by the municipalities which establish the same, rather than by virtue of corporate status. Your second question is: Does the property of a joint fire administrative board have the same status as that of municipalities regarding tax exemptions? A joint fire administrative board performs the joint administrative function which each such local unit has the power and authority to perform individually. Property utilized by the fire department would be owned either by the respective local units of government participating in the joint activity or by a separate legal entity established by those local units of government for the administration of the joint activity, depending upon the terms of the interlocal agreement. See, MCL 124.507; MSA 5.4088(7). To the extent that a local unit of government, as described in the township fire protection act, would be exempt from taxation pursuant to a given statute, the property of that local unit of government, when administered on a joint basis, would also be exempt from taxation. See, the General Property Tax Act, MCL 211.7m; MSA 7.7(4j), which provides: '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, nonprofit corporation, commission, or other separate legal entity comprised solely of, or which is wholly owned by, or whose members consist solely of a political subdivision, a combination of political subdivisions, or a combination of political subdivisions and the state and is used to carry out a public purpose itself or on behalf of a political subdivision or a combination is exempt from taxation under this act. Parks shall be open to the public generally. This exemption shall not apply to property acquired after July 19, 1966, unless a deed or other memorandum of conveyance is recorded in the county where the property is located before December 31 of the year of acquisition, or the local assessing officer is notified by registered mail of the acquisition before December 31 of the year of acquisition.' (Emphasis added.) See also, MCL 211.9; MSA 7.9, which provides, in pertinent part: 'The following personal property shall be exempt from taxation: (i) Fire engines and other implements used in extinguishing fires owned or used by an organized or independent fire company.' See also, MCL 257.801; MSA 9.2501, subsection (f), providing for separate registration fees for municipally-owned motor vehicles. A joint fire administrative board would also be exempt from the use tax in accordance with MCL 205.94(i); MSA 7.555(4)(i). It is my opinion, therefore, that the property utilized by a joint fire administrative board would be exempt from taxation on the same basis as the property of its parent municipalities. Your third question is: Is a joint fire administrative board authorized to use municipal registration plates? OAG, 1979-1980, No 5651, p 606 (February 12, 1980), concluded that fire trucks are required to be registered and to bear registration plates. The opinion cited the Michigan Vehicle Code, MCL 257.224; MSA 9.1924, which provides, in pertinent part: '(3) A registration plate issued for motor vehicles owned and operated by . . . a municipality . . . shall not expire at any particular time but shall be renewed when the registration plate is worn out or is illegible. This registration plate shall be assigned upon proper application and payment of the applicable fee . . ..' Motor vehicles owned and operated by municipalities, by a joint fire administrative board, or by a separate legal entity established by municipalities pursuant to an interlocal agreement for the exercise of the joint governmental function would be authorized to apply for and use municipal registration plates. It is my opinion, therefore, that a joint fire administrative board is authorized to use municipal registration plates. Frank J. Kelley Attorney General
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