HB-4860, As Passed House, December 12, 2012HB-4860, As Passed Senate, December 12, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 4860

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 27b (MCL 211.27b), as amended by 1996 PA 476.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 27b. (1) If the buyer, grantee, or other transferee in

the immediately preceding transfer of ownership of property does

not notify the appropriate assessing office as required by section

27a(8) 27a(10), the property's taxable value shall be adjusted

under section 27a(3) and all of the following shall be levied:

     (a) Any additional taxes that would have been levied if the

transfer of ownership had been recorded as required under this act

from the date of transfer.

     (b) Interest and penalty from the date the tax would have been

originally levied.

     (c) For property classified under section 34c as either

industrial real property or commercial real property, a penalty in

the following amount:

     (i) Except as otherwise provided in subparagraph (ii), if the

sale price of the property transferred is $100,000,000.00 or less,

$20.00 per day for each separate failure beginning after the 45

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

     (ii) If the sale price of the property transferred is more than

$100,000,000.00, $20,000.00 after the 45 days have elapsed.

However, if the appropriate assessing office determines that the

failure to notify the assessing office within 45 days after the

property's transfer of ownership was due to reasonable cause and

not the willful neglect of the buyer, grantee, or other transferee,

the penalty under subparagraph (i) shall be imposed. If the

appropriate assessing office makes a determination that the failure

to notify the assessing office within 45 days after the property's

transfer of ownership was a result of the willful neglect of the

buyer, grantee, or other transferee, that assessing office shall

promptly send that buyer, grantee, or other transferee written

notice, by certified mail, of that determination. A buyer, grantee,

or other transferee who is assessed the penalty under this

subparagraph may appeal that determination to the Michigan tax

tribunal.

(d) (c) A For real property other than real property

classified under section 34c as industrial real property or

commercial real property, a penalty of $5.00 per day for each

separate failure beginning after the 45 days have elapsed, up to a

maximum of $200.00.

     (2) The appropriate assessing officer shall certify for

collection to the treasurer of the local tax collecting unit if the

local tax collecting unit has possession of the tax roll or the

county treasurer if the county has possession of the tax roll any

additional taxes due under subsection (1)(a) and any penalty due

under subsection (1)(c) or (d).

     (3) The treasurer of the local tax collecting unit if the

local tax collecting unit has possession of the tax roll or the

county treasurer if the county has possession of the tax roll shall

collect any taxes, interest, and penalty due pursuant to this

section, and shall immediately prepare and submit a corrected tax

bill for any additional taxes due under subsection (1)(a) and any

interest and penalty due under subsection (1)(b). A penalty due

under subsection (1)(c) or (d) may be collected with the

immediately succeeding regular tax bill.

     (4) Any taxes, interest, and penalty collected pursuant to

subsection (1)(a) and (b) shall be distributed in the same manner

as other delinquent taxes, interest, and penalties are distributed

under this act. Any penalty collected under subsection (1)(c) or

(d) shall be distributed to the local tax collecting unit.

     (5) The governing body of a local tax collecting unit may

waive, by resolution, the penalty levied under subsection (1)(c) or

(d).

     (6) If the taxable value of property is increased under this

section, the appropriate assessing officer shall immediately notify

by first-class mail the owner of that property of that increase in

taxable value. A buyer, grantee, or other transferee may appeal any

increase in taxable value or the levy of any additional taxes,

interest, and penalties under subsection (1) to the Michigan tax

tribunal within 35 days of receiving the notice of the increase in

the property's taxable value. An appeal under this subsection is

limited to the issues of whether a transfer of ownership has

occurred and correcting arithmetic errors. A dispute regarding the

valuation of the property is not a basis for appeal under this

subsection.

     (7) If the taxable value of property is adjusted under

subsection (1), the assessing officer making the adjustment shall

file an affidavit with all officials responsible for determining

assessment figures, rate of taxation, or mathematical calculations

for that property within 30 days of the date the adjustment is

made. The affidavit shall state the amount of the adjustment and

the amount of additional taxes levied. The officials with whom the

affidavit is filed shall correct all official records for which

they are responsible to reflect the adjustment and levy.

     (8) Notification of a transfer of ownership provided as

required under section 27a(10) or a levy of additional taxes,

interest, and penalty under this section shall not be considered a

determination of or evidence of the classification of the property

transferred as real or personal property.