March 14, 2006, Introduced by Reps. Sheen, Plakas, Amos, Booher, Jones, Emmons, Gaffney, Gosselin, Taub, Hansen, Stahl, Hoogendyk, Vander Veen, Pastor, Brandenburg, Drolet, Acciavatti, Ball, Casperson, Marleau, Robertson, Pavlov, Moolenaar and Walker and referred to the Committee on Tax Policy.
A bill to amend 1973 PA 186, entitled
"Tax tribunal act,"
by amending sections 35 and 37 (MCL 205.735 and 205.737), as
amended by 2003 PA 131.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35. (1) A proceeding before the tribunal is original and
independent
and is considered de novo. For
(2) Except as otherwise provided in subsection (3), for an
assessment dispute as to the valuation of property or if an
exemption is claimed, the assessment must be protested before the
board of review before the tribunal acquires jurisdiction of the
dispute
under subsection (2) (5), except as otherwise provided in
this section for a year in which the July or December board of
review has authority to determine a claim of exemption for
qualified agricultural property or for an appeal of a denial of a
principal residence exemption by the department of treasury, and in
section 37(5) and (7).
(3) All of the following apply to a property tax dispute
initiated after December 31, 2006 and before January 1, 2010:
(a) For a property tax dispute as to the assessed value,
taxable value, or exempt status of property classified as
residential real property, agricultural real property, timber-
cutover real property, agricultural personal property, or
residential personal property under section 34c of the general
property tax act, 1893 PA 206, MCL 211.34c, a protest shall be
filed with the board of review before the tribunal acquires
jurisdiction of the dispute under subsection (5), except as
otherwise provided in this section for a year in which the July or
December board of review has authority to determine a claim of
exemption for qualified agricultural property or for an appeal of a
denial of a principal residence exemption by the department of
treasury, and in section 37(5) and (7).
(b) For property classified as commercial real property,
industrial real property, developmental real property, commercial
personal property, industrial personal property, or utility
personal property under section 34c of the general property tax
act, 1893 PA 206, MCL 211.34c, the tribunal shall acquire
jurisdiction of a dispute as to the assessed value, taxable value,
or exempt status of the property if there is either a protest filed
with the board of review or if, on or before April 1 of the tax
year involved, a notice of intent to appeal is either filed with
the assessor of the local tax collecting unit in which the property
is located or is sent to the assessor of the local tax collecting
unit in which the property is located by certified mail, facsimile,
electronic mail, or a delivery service designated under section
7502 of the internal revenue code, 26 USC 7502. If April 1 is a day
during which the assessor's office is not open for business, the
notice of intent to appeal may be filed or sent by the next
business day. A notice of intent to appeal shall reasonably
identify the real or personal property that is the subject of the
appeal. A notice of intent to appeal that has 1 or more property
addresses or parcel identification numbers shall be deemed to have
reasonably identified each property listed. This section's filing
and substantive requirements for a notice of intent to appeal shall
not be changed by an assessor or by any local unit of government.
(4)
For a dispute regarding a determination
of a claim for
of exemption of qualified agricultural property for a year in which
the July or December board of review has authority to determine a
claim of exemption for qualified agricultural property, the claim
for
of exemption
must shall be
presented to either the July or
December board of review before the tribunal acquires jurisdiction
of the dispute. For a special assessment dispute, the special
assessment must
shall be protested at the hearing held for the
purpose of confirming the special assessment roll before the
tribunal acquires jurisdiction of the dispute.
(5) (2)
The jurisdiction of the tribunal in an assessment
dispute is invoked by a party in interest, as petitioner, filing a
written petition on or before June 30 of the tax year involved.
Except in the residential property and small claims division, a
written petition is considered filed by June 30 of the tax year
involved if it is sent by certified mail on or before June 30 of
that tax year. In the residential property and small claims
division, a written petition is considered filed by June 30 of the
tax year involved if it is postmarked by first-class mail or
delivered in person on or before June 30 of the tax year involved.
All petitions required to be filed or served by a day during which
the offices of the tribunal are not open for business shall be
filed by the next business day. In all other matters, the
jurisdiction of the tribunal is invoked by a party in interest, as
petitioner, filing a written petition within 30 days after the
final decision, ruling, determination, or order that the petitioner
seeks to review, or within 35 days if the appeal is pursuant to
section 22(1) of 1941 PA 122, MCL 205.22. Except in the residential
property and small claims division, a written petition is
considered filed if it is sent by certified mail or delivered in
person on or before expiration of the period in which an appeal may
be made as provided by law. In the residential and small claims
division, a written petition is considered filed if it is
postmarked by first-class mail or delivered in person on or before
expiration of the period in which an appeal may be made as provided
by law. An appeal of a contested tax bill shall be made within 60
days after mailing by the assessment district treasurer and the
appeal is limited solely to correcting arithmetic errors or
mistakes and is not a basis of appeal as to disputes of valuation
of the property, the property's exempt status, or the property's
state
equalized value valuation resulting from equalization of
its assessment by the county board of commissioners or the state
tax commission. Service of the petition on the respondent shall be
by certified mail. For an assessment dispute, service of the
petition
shall be mailed to the assessor of that
governmental
local tax collecting unit if the respondent is the local
governmental
tax collecting unit. Except for petitions filed under
chapter 6, a copy of the petition shall also be sent to the
secretary of the school board in the local school district in which
the property is located and to the clerk of any county that may be
affected.
(6) (3)
The petition or answer may be amended at any time by
leave of the tribunal and in compliance with its rules. If a tax
was paid while the determination of the right to the tax is pending
before the tribunal, the taxpayer may amend his or her petition to
seek a refund of that tax.
(7) (4)
A person or legal entity may appear before the
tribunal in his or her own behalf, or may be represented by an
attorney or by any other person.
Sec. 37. (1) The tribunal shall determine a property's taxable
value pursuant to section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.
(2) The tribunal shall determine a property's state equalized
valuation by multiplying its finding of true cash value by a
percentage equal to the ratio of the average level of assessment in
relation to true cash values in the assessment district, and
equalizing that product by application of the equalization factor
that is uniformly applicable in the assessment district for the
year in question. The property's state equalized valuation shall
not exceed 50% of the true cash value of the property on the
assessment date.
(3) The petitioner has the burden of proof in establishing the
true cash value of the property. The assessing agency has the
burden of proof in establishing the ratio of the average level of
assessments in relation to true cash values in the assessment
district and the equalization factor that was uniformly applied in
the assessment district for the year in question.
(4) If the taxpayer paid additional taxes as a result of the
unlawful assessments on the same property after filing the
petition, or if in subsequent years an unlawful assessment is made
against the same property, the taxpayer, not later than the filing
deadline
prescribed in section 35(2) 35(5), except as otherwise
provided in subsections (5) and (7), may amend the petition to join
all of the claims for a determination of the property's taxable
value, state equalized valuation, or exempt status and for a refund
of payments based on the unlawful assessments. The motion to amend
the petition to add a subsequent year shall be accompanied by a
motion fee equal to 50% of the filing fee to file a petition to
commence an appeal for that property in that year. A sum determined
by the tribunal to have been unlawfully paid or underpaid shall
bear interest from the date of payment to the date of judgment and
the judgment shall bear interest to date of its payment. However, a
sum determined by the tribunal to have been underpaid shall not
bear interest for any time period prior to 28 days after the
tribunal's decision. Interest required by this subsection shall
accrue for periods before April 1, 1982 at a rate of 6% per year,
shall accrue for periods after March 31, 1982 but before April 1,
1985 at a rate of 12% per year, and shall accrue for periods after
March 31, 1985 but before April 1, 1994 at a rate of 9% per year.
After March 31, 1994 but before January 1, 1996, interest shall
accrue at an interest rate set monthly at a per annum rate based on
the auction rate of the 91-day discount treasury bill rate for the
first Monday in each month, plus 1%. After December 31, 1995,
interest shall accrue at an interest rate set each year based on
the average auction rate of 91-day discount treasury bills in the
immediately preceding state fiscal year as certified by the
department of treasury, plus 1%. The department of treasury shall
certify the interest rate within 60 days after the end of the
immediately preceding fiscal year. The tribunal shall order the
refund of all or part of a property tax administration fee paid in
connection with taxes that the tribunal determines were unlawfully
paid.
(5) A motion to amend a petition to add subsequent years is
not necessary in the following circumstances:
(a) For petitions filed after December 31, 1987, if the
tribunal has jurisdiction over a petition alleging that the
property is exempt from taxation, the appeal for each subsequent
year for which an assessment has been established shall be added
automatically to the petition. However, upon leave of the tribunal,
the petitioner or respondent may request that any subsequent year
be excluded from appeal at the time of the hearing on the petition.
(b) If the residential property and small claims division of
the tribunal has jurisdiction over a petition, the appeal for each
subsequent year for which an assessment has been established shall
be added automatically to the petition. The residential property
and small claims division shall automatically add to an appeal of a
final determination of a claim for exemption of a principal
residence or of qualified agricultural property each subsequent
year in which a claim for exemption of that principal residence or
that qualified agricultural property is denied. However, upon leave
of the tribunal, the petitioner or respondent may request that any
subsequent year be excluded from appeal at the time of the hearing
on the petition.
(6) The notice of the hearing on a petition shall include a
statement advising the petitioner of the right to amend his or her
petition to include or exclude subsequent years as provided by
subsections (4) and (5).
(7) If the final equalization multiplier for the tax year is
greater than the tentative multiplier used in preparing the
assessment notice and as a result of action of the state board of
equalization or county board of commissioners a taxpayer's
assessment as equalized is in excess of 50% of true cash value,
that person may appeal directly to the tax tribunal without a prior
protest before the local board of review. The appeal shall be filed
under this subsection on or before the third Monday in August and
shall be heard in the same manner as other appeals of the tribunal.
An appeal pursuant to this subsection shall not result in an
equalized value less than the assessed value multiplied by the
tentative equalization multiplier used in preparing the assessment
notice.