House Bill 4556 would provide no direct benefit to DEQ programs. The Bill would present significant fiscal impacts for the state and local governments. The Bill fails to recognize that wetland properties have real, and in many cases, significant economic values. For example, wetlands can provide open space requirements for new developments and other economically valuable amenities. They often enhance rather than diminish the economic value of property, depending on the circumstances.
People own or buy property that contain wetlands for a variety of reasons.
Under the proposed amendment, properties containing wetlands would be exempt from property taxes, even though they may have very valuable economic uses that can be exercised without regulation under Part 303. There are approximately 5.5 million acres of wetlands in Michigan, the majority in private ownership. Currently, wetlands, like all properties, are taxed at their state equalized value which is based on their true market value. When assessments have been established above the market value, property owners may be able to lower assessments to more accurate levels by convincing zoning boards that the wetland is improperly zoned, for example, as industrial or residential property when it might more appropriately be zoned as recreational property. Also, when an assessment is above the actual market value of the property containing wetlands, the assessment usually has overlooked the extreme expenses normally associated with developing the wetland portion of the property.