HOUSE BILL No. 6482

 

September 18, 2008, Introduced by Reps. Moore, Calley, DeRoche, Pavlov, Green, Horn, Opsommer and Hansen and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 53b (MCL 211.53b), as amended by 2008 PA 122,

 

and by adding section 7qq.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7qq. (1) Except as otherwise limited in this subsection,

 

qualified foreclosed property is exempt from the tax levied by a

 

local school district for school operating purposes to the extent

 

provided under section 1211 of the revised school code, 1976 PA

 

451, MCL 380.1211, according to the provisions of this section.

 

     (2) To claim an exemption under subsection (1), the owner of

 

qualified foreclosed property shall file an affidavit claiming the

 

exemption with the local tax collecting unit by December 31.

 


     (3) The affidavit shall be on a form prescribed by the

 

department of treasury and shall require the person submitting the

 

affidavit to attest that the property for which the exemption is

 

claimed is qualified foreclosed property.

 

     (4) The assessor shall determine if the property is qualified

 

foreclosed property and if so shall exempt the property from the

 

collection of the tax as provided in subsection (1) until December

 

31 of the year in which the property is no longer qualified

 

foreclosed property or 3 years after the property is first exempt

 

under this section, whichever occurs first.

 

     (5) Not more than 90 days after all or a portion of the

 

exempted property is no longer qualified foreclosed property, the

 

owner shall rescind the exemption for the applicable portion of the

 

property by filing with the local tax collecting unit a rescission

 

form prescribed by the department of treasury. An owner who fails

 

to file a rescission as required by this subsection is subject to a

 

penalty of $5.00 per day for each separate failure beginning after

 

the 90 days have elapsed, up to a maximum of $1,000.00. This

 

penalty shall be collected under 1941 PA 122, MCL 205.1 to 205.31,

 

and shall be deposited in the general fund of this state.

 

     (6) An owner of property that is qualified foreclosed property

 

on December 31 for which an exemption was not on the tax roll may

 

file an appeal with the July or December board of review under

 

section 53b in the year the exemption was claimed or the

 

immediately succeeding year. An owner of property that is qualified

 

foreclosed property on May 1 for which an exemption was denied by

 

the assessor in the year the affidavit was filed may file an appeal

 


with the July board of review for summer taxes or, if there is not

 

a summer levy of school operating taxes, with the December board of

 

review under section 53b.

 

     (7) If the assessor of the local tax collecting unit believes

 

that the property for which an exemption has been granted is not

 

qualified foreclosed property, the assessor may deny or modify an

 

existing exemption by notifying the owner in writing at the time

 

required for providing a notice under section 24c. A taxpayer may

 

appeal the assessor's determination to the board of review meeting

 

under section 30. A decision of the board of review may be appealed

 

to the residential and small claims division of the Michigan tax

 

tribunal.

 

     (8) If property for which an exemption has been granted under

 

this section is not qualified foreclosed property, the property

 

that had been subject to that exemption shall be immediately placed

 

on the tax roll by the local tax collecting unit if the local tax

 

collecting unit has possession of the tax roll or by the county

 

treasurer if the county has possession of the tax roll as though

 

the exemption had not been granted. A corrected tax bill shall be

 

issued for each tax year being adjusted by the local tax collecting

 

unit if the local tax collecting unit has possession of the tax

 

roll or by the county treasurer if the county has possession of the

 

tax roll.

 

     (9) As used in this section, "qualified foreclosed property"

 

means either of the following:

 

     (a) Property owned by a bank, savings and loan, or other

 

financial institution as a result of mortgage foreclosure

 


proceedings if that property had been exempt as a principal

 

residence under section 7cc when mortgage foreclosure proceedings

 

were initiated.

 

     (b) Property that had been exempt as a principal residence

 

under section 7cc when mortgage foreclosure proceedings were

 

initiated and that was purchased from a bank, savings and loan, or

 

other financial institution after that bank, savings and loan, or

 

other financial institution initiated foreclosure proceedings, that

 

is not occupied, is for sale, is not leased, and is not used for

 

any business or commercial purpose.

 

     Sec. 53b. (1) If there has been a qualified error, the

 

qualified error shall be verified by the local assessing officer

 

and approved by the board of review. Except as otherwise provided

 

in subsection (7), the board of review shall meet for the purposes

 

of this section on Tuesday following the second Monday in December

 

and, for summer property taxes, on Tuesday following the third

 

Monday in July. Except as otherwise provided in subsection (7), if

 

there is not a levy of summer property taxes, the board of review

 

may meet for the purposes of this section on Tuesday following the

 

third Monday in July. If approved, the board of review shall file

 

an affidavit within 30 days relative to the qualified error with

 

the proper officials and all affected official records shall be

 

corrected. If the qualified error results in an overpayment or

 

underpayment, the rebate, including any interest paid, shall be

 

made to the taxpayer or the taxpayer shall be notified and payment

 

made within 30 days of the notice. A rebate shall be without

 

interest. The treasurer in possession of the appropriate tax roll

 


may deduct the rebate from the appropriate tax collecting unit's

 

subsequent distribution of taxes. The treasurer in possession of

 

the appropriate tax roll shall bill to the appropriate tax

 

collecting unit the tax collecting unit's share of taxes rebated.

 

Except as otherwise provided in subsection (6) and section 27a(4),

 

a correction under this subsection may be made in the year in which

 

the qualified error was made or in the following year only.

 

     (2) Action pursuant to this section may be initiated by the

 

taxpayer or the assessing officer.

 

     (3) The board of review meeting in July and December shall

 

meet only for the purpose described in subsection (1) and to hear

 

appeals provided for in sections 7u, 7cc, 7ee, and 7jj, and 7qq. If

 

an exemption under section 7u is approved, the board of review

 

shall file an affidavit with the proper officials involved in the

 

assessment and collection of taxes and all affected official

 

records shall be corrected. If an appeal under section 7cc, 7ee, or

 

7jj, or 7qq results in a determination that an overpayment has been

 

made, the board of review shall file an affidavit and a rebate

 

shall be made at the times and in the manner provided in subsection

 

(1). Except as otherwise provided in sections 7cc, 7ee, and 7jj,

 

and 7qq, a correction under this subsection shall be made for the

 

year in which the appeal is made only. If the board of review

 

grants an exemption or provides a rebate for property under section

 

7cc, 7ee, or 7jj, or 7qq as provided in this subsection, the board

 

of review shall require the owner to execute the affidavit provided

 

for in section 7cc, 7ee, or 7jj, or 7qq and shall forward a copy of

 

any section 7cc affidavits to the department of treasury.

 


     (4) If an exemption under section 7cc is granted by the board

 

of review under this section, the provisions of section 7cc apply.

 

If an exemption under section 7cc is not granted by the board of

 

review under this section, the owner may appeal that decision in

 

writing to the department of treasury within 35 days of the board

 

of review's denial and the appeal shall be conducted as provided in

 

section 7cc(8).

 

     (5) An owner or assessor may appeal a decision of the board of

 

review under this section regarding an exemption under section 7ee,

 

or 7jj, or 7qq to the residential and small claims division of the

 

Michigan tax tribunal. An owner is not required to pay the amount

 

of tax in dispute in order to receive a final determination of the

 

residential and small claims division of the Michigan tax tribunal.

 

However, interest and penalties, if any, shall accrue and be

 

computed based on interest and penalties that would have accrued

 

from the date the taxes were originally levied as if there had not

 

been an exemption.

 

     (6) A correction under this section that grants a principal

 

residence exemption pursuant to section 7cc may be made for the

 

year in which the appeal was filed and the 3 immediately preceding

 

tax years.

 

     (7) The governing body of the city or township may authorize,

 

by adoption of an ordinance or resolution, 1 or more of the

 

following alternative meeting dates for the purposes of this

 

section:

 

     (a) An alternative meeting date during the week of the second

 

Monday in December.

 


     (b) An alternative meeting date during the week of the third

 

Monday in July.

 

     (8) As used in this section, "qualified error" means 1 or more

 

of the following:

 

     (a) A clerical error relative to the correct assessment

 

figures, the rate of taxation, or the mathematical computation

 

relating to the assessing of taxes.

 

     (b) A mutual mistake of fact.

 

     (c) An adjustment under section 27a(4) or an exemption under

 

section 7hh(3)(b).

 

     (d) For board of review determinations in 2006 through 2009, 1

 

or more of the following:

 

     (i) An error of measurement or calculation of the physical

 

dimensions or components of the real property being assessed.

 

     (ii) An error of omission or inclusion of a part of the real

 

property being assessed.

 

     (iii) An error regarding the correct taxable status of the real

 

property being assessed.

 

     (iv) An error made by the taxpayer in preparing the statement

 

of assessable personal property under section 19.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 6483(request no.

 

07934'08 a) of the 94th Legislature is enacted into law.