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HB-4433, As Passed Senate, April 29, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4433

A bill to amend 1973 PA 186, entitled

"Tax tribunal act,"

by amending sections 3, 31, 32, 35a, and 52 (MCL 205.703, 205.731,

205.732, 205.735a, and 205.752), section 3 as amended by 1992 PA

172 and section 35a as added by 2006 PA 174, and by adding section

47.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. As used in this act:

(a) "Agency" means a board, official, or administrative agency

~~who is~~ empowered to make a decision, finding, ruling, assessment,

determination, or order that is subject to review under the

jurisdiction of the tribunal or ~~who~~ that has collected a tax for

which a refund is claimed.

(b) "Chairperson" means the chairperson of the tribunal.

facilitates communication between parties, assists in identifying

issues, and helps explore solutions to promote a mutually

acceptable settlement.

(d) "Mediator" means a neutral third party who is certified by

the tribunal under section 47 as a mediator in a proceeding before

the tribunal or as a facilitator in the court of claims, and who is

agreed to by the parties.

(e) ~~(c)~~ "Proceeding" means an appeal taken under this act.

(f) ~~(d)~~ "Property tax laws" does not include the drain code of

1956, ~~Act No. 40 of the Public Acts of 1956, being sections 280.1~~

~~to 280.630 of the~~ ~~Michigan~~ ~~Compiled Laws~~ 1956 PA 40, MCL 280.1 to

280.630.

(g) ~~(e)~~ "Tribunal" means the tax tribunal created under

section 21.

Sec. 31. The ~~tribunal's~~ tribunal has exclusive and original

jurisdiction ~~shall be~~ over all of the following:

(a) A proceeding for direct review of a final decision,

finding, ruling, determination, or order of an agency relating to

assessment, valuation, rates, special assessments, allocation, or

equalization, under the property tax laws of this state.

(b) A proceeding for a refund or redetermination of a tax

levied under the property tax laws of this state.

(b) before the tribunal.

(d) Certification of a mediator in a tax dispute described in

subdivision (c).

(e) Any other proceeding provided by law.

Sec. 32. The tribunal's powers include, but are not limited

to, all of the following:

(a) Affirming, reversing, modifying, or remanding a final

decision, finding, ruling, determination, or order of an agency.

(b) Ordering the payment or refund of taxes in a matter of

over which it may acquire jurisdiction.

directives ~~which~~ that it deems necessary or appropriate in the

process of disposition of a matter of over which it may acquire

jurisdiction.

(d) Promulgating ~~, pursuant to Act No. 306 of the Public Acts~~

~~of 1969, as amended, being sections 24.201 to 24.315 of the~~

~~Michigan Compiled Laws,~~ rules for the implementation of this act,

including rules for practice and procedure before the tribunal and

for mediation as provided in section 47, under the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(e) Mediating a proceeding before the tribunal.

(f) Certifying mediators to facilitate claims in the court of

claims and in the tribunal.

Sec. 35a. (1) The provisions of this section apply to a

proceeding before the tribunal that is commenced after December 31,

2006.

(2) A proceeding before the tribunal is original and

independent and is considered de novo.

(3) Except as otherwise provided in this section or by law,

for an assessment dispute as to the valuation or exemption of

property, the assessment must be protested before the board of

review before the tribunal acquires jurisdiction of the dispute

under subsection (6).

(4) In the 2007 tax year and each tax year after 2007, ~~both~~

all of the following apply:

(a) For an assessment dispute as to the valuation or exemption

of property classified under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, as commercial real property,

industrial real property, or developmental real property, the

assessment may be protested before the board of review or appealed

directly to the tribunal without protest before the board of review

as provided in subsection (6).

(b) For an assessment dispute as to the valuation or exemption

of property classified under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, as commercial personal property,

industrial personal property, or utility personal property, the

assessment may be protested before the board of review or appealed

directly to the tribunal without protest before the board of review

as provided in subsection (6), if a statement of assessable

property is filed under section 19 of the general property tax act,

1893 PA 206, MCL 211.19, prior to the commencement of the board of

review for the tax year involved.

that is subject to taxation under 1974 PA 198, MCL 207.551 to

207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651

to 207.668, the enterprise zone act, 1985 PA 224, MCL 125.2101 to

125.2123, the technology park development act, 1984 PA 385, MCL

207.701 to 207.718, the obsolete property rehabilitation act, 2000

PA 146, MCL 125.2781 to 125.2797, the commercial rehabilitation

act, 2005 PA 210, MCL 207.841 to 207.856, or 1953 PA 189, MCL

211.181 to 211.182, the assessment may be protested before the

board of review or appealed directly to the tribunal without

protest before the board of review as provided in subsection (6).

This subdivision does not apply to property that is subject to the

neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to

207.786.

(5) For a dispute regarding a determination of a claim of

exemption of a principal residence or qualified agricultural

property for a year in which the July or December board of review

has authority to determine a claim of exemption for a principal

residence or qualified agricultural property, the claim of

exemption 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 shall be

protested at the hearing held for the purpose of confirming the

special assessment roll before the tribunal acquires jurisdiction

of the dispute.

(6) The jurisdiction of the tribunal in an assessment dispute

as to property classified under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, as commercial real property,

industrial real property, developmental real property, commercial

personal property, industrial personal property, or utility

personal property is invoked by a party in interest, as petitioner,

filing a written petition on or before May 31 of the tax year

involved. The jurisdiction of the tribunal in an assessment dispute

as to property classified under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, as agricultural real property,

residential real property, timber-cutover real property, or

agricultural personal property is invoked by a party in interest,

as petitioner, filing a written petition on or before July 31 of

the tax year involved. In all other matters, the jurisdiction of

the tribunal is invoked by a party in interest, as petitioner,

filing a written petition within 35 days after the final decision,

ruling, or determination. 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 equalized value 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 local tax collecting unit

if the respondent is the local 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.

(7) A petition is considered filed on or before the expiration

of the time period provided in this section or by law if 1 or more

of the following occur:

(a) The petition is postmarked by the United States postal

service on or before the expiration of that time period.

(b) The petition is delivered in person on or before the

expiration of that time period.

delivery on or before the expiration of that time period and the

petition is delivered by that designated delivery service or, if

the petition is not delivered by that designated delivery service,

the petitioner establishes that the petition was given to that

designated delivery service for delivery on or before the

expiration of that time period.

(8) A petition required to be filed by a day during which the

offices of the tribunal are not open for business shall be filed by

the next business day.

(9) A 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.

(10) 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.

(11) As used in this section, "designated delivery service"

means a delivery service provided by a trade or business that is

designated by the tribunal for purposes of this subsection. The

tribunal shall issue a tribunal notice not later than December 31

in each calendar year designating not less than 1 delivery service

for the immediately succeeding calendar year. The tribunal may

designate a delivery service only if the tribunal determines that

the delivery service meets all of the following requirements:

(a) Is available to the general public.

(b) Is at least as timely and reliable on a regular basis as

the United States postal service.

course of business or marks on the petition the date on which the

petition was given to the delivery service for delivery.

(d) Any other requirement the tribunal prescribes.

Sec. 47. (1) A person may apply to the tribunal to be

certified as a mediator. Certification is for a period of 1 year.

The application shall be in a form prescribed by the tribunal. A

tribunal member or hearing officer may not be certified as a

mediator.

(2) The tribunal shall promulgate rules under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, that establish requirements for an applicant to be

certified as a mediator. Whether an applicant meets the established

requirements to be certified as a mediator shall be solely

determined by the tribunal. The requirements for certification as a

mediator shall include, but are not limited to, 5 years of state

and local tax experience that occurred within 7 years immediately

preceding submission of the application. If an applicant satisfies

the requirements established by the tribunal, the tribunal shall

certify that applicant as a mediator. The tribunal may charge each

mediator certified by the tribunal an annual certification fee, as

determined by the tribunal.

(3) The tribunal shall maintain a list of certified mediators

available to conduct a mediation described in section 32. The list

shall be published and shall indicate all of the following:

(a) The hourly rate charged by the mediator for his or her

mediation services.

(b) The type of tax the mediator is certified to mediate.

(d) The forum in which the mediator is certified to practice.

(4) A mediator shall disclose to all parties any conflict of

interest that may exist before agreeing to mediate a dispute.

(5) The tribunal shall mediate a proceeding in which it has

exclusive and original jurisdiction under section 31 if all of the

following conditions are satisfied:

(a) The parties have filed with the tribunal a stipulation

that they agree to participate in mediation.

(b) The parties agree to a mediator.

for mediation.

(6) The tribunal shall appoint the mediator agreed to by the

parties. A mediator has no authoritative decision-making power to

resolve a dispute in mediation. The mediator shall report the

results of the mediation to the tribunal. If an agreement is

reached in a proceeding before the tribunal, the tribunal shall

accept the agreement if it meets the tribunal’s requirements.

(7) Statements made during a mediation conference, including

statements made in written submissions, shall not be used and are

not admissible in any other proceedings, including trial. Any

statements, written submissions or materials, or communications

between the parties or counsel of the parties and the mediator

relating to the mediation are confidential and shall not be

disclosed without the written consent of all parties and are not

subject to the disclosure requirements of the freedom of

information act, 1976 PA 442, MCL 15.231 to 15.246, except for the

following:

(a) The report of the mediator. The report shall be in a form

prescribed by the tribunal.

(b) Information reasonably required by tribunal personnel to

administer and evaluate the mediation program under this section.

regarding the mediator’s fee.

(d) Consent judgments.

(8) A mediation conference is not a meeting of a public body

for purposes of the open meetings act, 1976 PA 267, MCL 15.261 to

15.275.

(9) The tribunal may charge a fee for mediation.

Sec. 52. (1) A decision ~~and~~ or order of the tribunal is final

and conclusive on all parties, unless reversed, remanded, or

modified on appeal. A copy of the decision or order shall be mailed

forthwith to each party or his attorney of record. Costs may be

awarded in the discretion of the tribunal.

(2) The tribunal may order a rehearing upon written motion

made by a party within 20 21 days after the entry of the decision