September 10, 2014, Introduced by Senator CASWELL and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7b, 7u, 7cc, 7ee, 24c, 28, 29, 30, 34c, 53b,
53c, and 154 (MCL 211.7b, 211.7u, 211.7cc, 211.7ee, 211.24c,
211.28, 211.29, 211.30, 211.34c, 211.53b, 211.53c, and 211.154),
section 7b as amended by 2013 PA 161, section 7u as amended by 2012
PA 135, section 7cc as amended by 2014 PA 40, sections 7ee and 154
as amended by 2003 PA 247, section 24c as amended by 2010 PA 332,
section 28 as amended by 2006 PA 143, sections 30 and 53b as
amended by 2013 PA 153, section 34c as amended by 2012 PA 409, and
section 53c as added by 1995 PA 74, and by adding section 53e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7b. (1) Real property used and owned as a homestead by a
disabled veteran who was discharged from the armed forces of the
United States under honorable conditions or by an individual
described in subsection (2) is exempt from the collection of taxes
under this act. To obtain the exemption, an affidavit showing the
facts required by this section and a description of the real
property shall be filed by the property owner or his or her legal
designee with the supervisor or other assessing officer during the
period beginning with the tax day for each year and ending at the
time
of the final adjournment of the local December board of
review. The affidavit when filed shall be open to inspection. The
county treasurer shall cancel taxes subject to collection under
this act for any year in which a disabled veteran eligible for the
exemption under this section has acquired title to real property
exempt under this section. Upon granting the exemption under this
section, each local taxing unit shall bear the loss of its portion
of the taxes upon which the exemption has been granted.
(2) If a disabled veteran who is otherwise eligible for the
exemption under this section dies, either before or after the
exemption under this section is granted, the exemption shall remain
available to or shall continue for his or her unremarried surviving
spouse. The surviving spouse shall comply with the requirements of
subsection (1) and shall indicate on the affidavit that he or she
is the surviving spouse of a disabled veteran entitled to the
exemption under this section. The exemption shall continue as long
as the surviving spouse remains unremarried.
(3) A person claiming an exemption under this section may
appeal the decision of the March board of review to the Michigan
tax tribunal not later than July 31 in that year. A person claiming
an exemption under this section may appeal the decision of the July
or December board of review to the Michigan tax tribunal not later
than 60 days after the date of that decision. An appeal of the
denial of a claim of exemption under this section may be for the
current year and the 3 immediately preceding years; however, an
appeal may not be taken for a year prior to 2014.
(4) (3)
As used in this section,
"disabled veteran" means a
person who is a resident of this state and who meets 1 of the
following criteria:
(a) Has been determined by the United States department of
veterans affairs to be permanently and totally disabled as a result
of military service and entitled to veterans' benefits at the 100%
rate.
(b) Has a certificate from the United States veterans'
administration, or its successors, certifying that he or she is
receiving or has received pecuniary assistance due to disability
for specially adapted housing.
(c) Has been rated by the United States department of veterans
affairs as individually unemployable.
Sec. 7u. (1) The principal residence of persons who, in the
judgment of the supervisor and board of review, by reason of
poverty, are unable to contribute toward the public charges is
eligible for exemption in whole or in part from taxation under this
act. This section does not apply to the property of a corporation.
(2) To be eligible for exemption under this section, a person
shall do all of the following on an annual basis:
(a) Be an owner of and occupy as a principal residence the
property for which an exemption is requested.
(b) File a claim with the supervisor or board of review on a
form provided by the local assessing unit, accompanied by federal
and state income tax returns for all persons residing in the
principal residence, including any property tax credit returns,
filed in the immediately preceding year or in the current year.
Federal and state income tax returns are not required for a person
residing in the principal residence if that person was not required
to file a federal or state income tax return in the tax year in
which the exemption under this section is claimed or in the
immediately preceding tax year. If a person was not required to
file a federal or state income tax return in the tax year in which
the exemption under this section is claimed or in the immediately
preceding tax year, an affidavit in a form prescribed by the state
tax commission may be accepted in place of the federal or state
income tax return. The filing of a claim under this subsection
constitutes an appearance before the board of review for the
purpose of preserving the claimant's right to appeal the decision
of the board of review regarding the claim.
(c) Produce a valid driver's license or other form of
identification if requested by the supervisor or board of review.
(d) Produce a deed, land contract, or other evidence of
ownership of the property for which an exemption is requested if
required by the supervisor or board of review.
(e) Meet the federal poverty guidelines updated annually in
the federal register by the United States department of health and
human
services under authority of section 673 of subtitle B of
title
VI of the omnibus budget reconciliation act of 1981, Public
Law
97-35, 42 USC 9902 , or alternative guidelines adopted by the
governing body of the local assessing unit provided the alternative
guidelines do not provide income eligibility requirements less than
the federal guidelines.
(3) The application for an exemption under this section shall
be filed after January 1 but before the day prior to the last day
of the December board of review.
(4) The governing body of the local assessing unit shall
determine and make available to the public the policy and
guidelines the local assessing unit uses for the granting of
exemptions under this section. The guidelines shall include but not
be limited to the specific income and asset levels of the claimant
and total household income and assets.
(5) The board of review shall follow the policy and guidelines
of the local assessing unit in granting or denying an exemption
under this section unless the board of review determines there are
substantial and compelling reasons why there should be a deviation
from the policy and guidelines and the substantial and compelling
reasons are communicated in writing to the claimant.
(6) A person who files a claim under this section is not
prohibited from also appealing the assessment on the property for
which that claim is made before the board of review in the same
year.
(7) A person claiming an exemption under this section may
appeal the decision of the March board of review to the Michigan
tax tribunal not later than July 31 in that year. A person claiming
an exemption under this section may appeal the decision of the July
or December board of review to the Michigan tax tribunal not later
than 60 days after the date of that decision.
(8) (7)
As used in this section,
"principal residence" means
principal residence or qualified agricultural property as those
terms are defined in section 7dd.
Sec. 7cc. (1) A principal residence 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, if an owner of that principal residence
claims an exemption as provided in this section. Notwithstanding
the tax day provided in section 2, the status of property as a
principal residence shall be determined on the date an affidavit
claiming an exemption is filed under subsection (2).
(2) Except as otherwise provided in subsection (5), an owner
of property may claim 1 exemption under this section by filing an
affidavit on or before May 1 for taxes levied before January 1,
2012 or, for taxes levied after December 31, 2011, on or before
June 1 for the immediately succeeding summer tax levy and all
subsequent tax levies or on or before November 1 for the
immediately succeeding winter tax levy and all subsequent tax
levies with the local tax collecting unit in which the property is
located. The affidavit shall state that the property is owned and
occupied as a principal residence by that owner of the property on
the date that the affidavit is signed. The affidavit shall be on a
form prescribed by the department of treasury. One copy of the
affidavit shall be retained by the owner, 1 copy shall be retained
by the local tax collecting unit until any appeal or audit period
under this act has expired, and 1 copy shall be forwarded to the
department of treasury pursuant to subsection (4), together with
all
information submitted under subsection (28) (27) for
a
cooperative housing corporation. The affidavit shall require the
owner claiming the exemption to indicate if that owner or that
owner's spouse has claimed another exemption on property in this
state that is not rescinded or a substantially similar exemption,
deduction, or credit on property in another state that is not
rescinded. If the affidavit requires an owner to include a social
security number, that owner's number is subject to the disclosure
restrictions in 1941 PA 122, MCL 205.1 to 205.31. If an owner of
property filed an affidavit for an exemption under this section
before January 1, 2004, that affidavit shall be considered the
affidavit required under this subsection for a principal residence
exemption and that exemption shall remain in effect until rescinded
as provided in this section.
(3) Except as otherwise provided in subsection (5), a husband
and wife who are required to file or who do file a joint Michigan
income tax return are entitled to not more than 1 exemption under
this section. For taxes levied after December 31, 2002, a person is
not entitled to an exemption under this section if any of the
following conditions occur:
(a) That person has claimed a substantially similar exemption,
deduction, or credit on property in another state that is not
rescinded.
(b) Subject to subdivision (a), that person or his or her
spouse owns property in a state other than this state for which
that person or his or her spouse claims an exemption, deduction, or
credit substantially similar to the exemption provided under this
section, unless that person and his or her spouse file separate
income tax returns.
(c) That person has filed a nonresident Michigan income tax
return, except active duty military personnel stationed in this
state with his or her principal residence in this state.
(d) That person has filed an income tax return in a state
other than this state as a resident, except active duty military
personnel stationed in this state with his or her principal
residence in this state.
(e) That person has previously rescinded an exemption under
this section for the same property for which an exemption is now
claimed and there has not been a transfer of ownership of that
property after the previous exemption was rescinded, if either of
the following conditions is satisfied:
(i) That person has claimed an exemption under this section for
any other property for that tax year.
(ii) That person has rescinded an exemption under this section
on other property, which exemption remains in effect for that tax
year, and there has not been a transfer of ownership of that
property.
(4) Upon receipt of an affidavit filed under subsection (2)
and unless the claim is denied under this section, the assessor
shall exempt the property from the collection of 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, as provided in subsection (1) until December 31
of the year in which the property is transferred or, except as
otherwise provided in subsection (5), is no longer a principal
residence as defined in section 7dd. The local tax collecting unit
shall forward copies of affidavits to the department of treasury
according to a schedule prescribed by the department of treasury.
(5) Except as otherwise provided in this subsection, not more
than 90 days after exempted property is no longer used as a
principal residence by the owner claiming an exemption, that owner
shall rescind the claim of exemption by filing with the local tax
collecting unit a rescission form prescribed by the department of
treasury. If an owner is eligible for and claims an exemption for
that owner's current principal residence, that owner may retain an
exemption for not more than 3 tax years on property previously
exempt as his or her principal residence if that property is not
occupied, is for sale, is not leased, and is not used for any
business or commercial purpose by filing a conditional rescission
form prescribed by the department of treasury with the local tax
collecting unit within the time period prescribed in subsection
(2). Beginning in the 2012 tax year, subject to the payment
requirement set forth in this subsection, if a land contract
vendor, bank, credit union, or other lending institution owns
property as a result of a foreclosure or forfeiture of a recorded
instrument under chapter 31, 32, or 57 of the revised judicature
act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701
to 600.5759, or through deed or conveyance in lieu of a foreclosure
or forfeiture on that property and that property had been exempt
under this section immediately preceding the foreclosure, that land
contract vendor, bank, credit union, or other lending institution
may retain an exemption on that property at the same percentage of
exemption that the property previously had under this section if
that property is not occupied other than by the person who claimed
the exemption under this section immediately preceding the
foreclosure or forfeiture, is for sale, is not leased to any person
other than the person who claimed the exemption under this section
immediately preceding the foreclosure, and is not used for any
business or commercial purpose. A land contract vendor, bank,
credit union, or other lending institution may claim an exemption
under this subsection by filing a conditional rescission form
prescribed by the department of treasury with the local tax
collecting unit within the time period prescribed in subsection
(2). Property is eligible for a conditional rescission if that
property is available for lease and all other conditions under this
subsection are met. A copy of a conditional rescission form shall
be forwarded to the department of treasury according to a schedule
prescribed by the department of treasury. An owner or a land
contract vendor, bank, credit union, or other lending institution
that files a conditional rescission form shall annually verify to
the assessor of the local tax collecting unit on or before December
31 that the property for which the principal residence exemption is
retained is not occupied other than by the person who claimed the
exemption under this section immediately preceding the foreclosure
or forfeiture, is for sale, is not leased except as otherwise
provided in this section, and is not used for any business or
commercial purpose. The land contract vendor, bank, credit union,
or other lending institution may retain the exemption authorized
under this section for not more than 3 tax years. If an owner or a
land contract vendor, bank, credit union, or other lending
institution does not annually verify by December 31 that the
property for which the principal residence exemption is retained is
not occupied other than by the person who claimed the exemption
under this section immediately preceding the foreclosure or
forfeiture, is for sale, is not leased except as otherwise provided
in this section, and is not used for any business or commercial
purpose, the assessor of the local tax collecting unit shall deny
the principal residence exemption on that property. Except as
otherwise provided in this section, if property subject to a
conditional rescission is leased, the local tax collecting unit
shall deny that conditional rescission and that denial is
retroactive and is effective on December 31 of the year immediately
preceding the year in which the property subject to the conditional
rescission is leased. 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 $200.00. This penalty shall be
collected under 1941 PA 122, MCL 205.1 to 205.31, and shall be
deposited in the state school aid fund established in section 11 of
article IX of the state constitution of 1963. This penalty may be
waived by the department of treasury. If a land contract vendor,
bank, credit union, or other lending institution retains an
exemption on property under this subsection, that land contract
vendor, bank, credit union, or other lending institution shall pay
an amount equal to the additional amount that land contract vendor,
bank, credit union, or other lending institution would have paid
under section 1211 of the revised school code, 1976 PA 451, MCL
380.1211, if an exemption had not been retained on that property,
together with an administration fee equal to the property tax
administration fee imposed under section 44. The payment required
under this subsection shall be collected by the local tax
collecting unit at the same time and in the same manner as taxes
collected under this act. The administration fee shall be retained
by the local tax collecting unit. The amount collected that the
land contract vendor, bank, credit union, or other lending
institution would have paid under section 1211 of the revised
school code, 1976 PA 451, MCL 380.1211, if an exemption had not
been retained on that property is an amount that is not captured by
any authority as tax increment revenues and shall be distributed to
the department of treasury monthly for deposit into the state
school aid fund established in section 11 of article IX of the
state constitution of 1963. If a land contract vendor, bank, credit
union, or other lending institution transfers ownership of property
for which an exemption is retained under this subsection, that land
contract vendor, bank, credit union, or other lending institution
shall rescind the exemption as provided in this section and shall
notify the treasurer of the local tax collecting unit of that
transfer of ownership. If a land contract vendor, bank, credit
union, or other lending institution fails to make the payment
required under this subsection for any property within the period
for which property taxes are due and payable without penalty, the
local tax collecting unit shall deny that conditional rescission
and that denial is retroactive and is effective on December 31 of
the immediately preceding year. If the local tax collecting unit
denies a conditional rescission, the local tax collecting unit
shall remove the exemption of the property and the amount due from
the land contract vendor, bank, credit union, or other lending
institution shall be a tax so that the additional taxes, penalties,
and interest shall be collected as provided for in this section. If
payment of the tax under this subsection is not made by the March 1
following the levy of the tax, the tax shall be turned over to the
county treasurer and collected in the same manner as delinquent
taxes under this act. A person who previously occupied property as
his or her principal residence but now resides in a nursing home or
assisted living facility may retain an exemption on that property
if the owner manifests an intent to return to that property by
satisfying all of the following conditions:
(a) The owner continues to own that property while residing in
the nursing home or assisted living facility.
(b) The owner has not established a new principal residence.
(c) The owner maintains or provides for the maintenance of
that property while residing in the nursing home or assisted living
facility.
(d) That property is not occupied, is not leased, and is not
used for any business or commercial purpose.
(6) Except as otherwise provided in subsection (5), if the
assessor of the local tax collecting unit believes that the
property for which an exemption is claimed is not the principal
residence of the owner claiming the exemption, the assessor may
deny a new or existing claim by notifying the owner and the
department of treasury in writing of the reason for the denial and
advising the owner that the denial may be appealed to the
residential property and small claims division of the Michigan tax
tribunal
within 35 60 days after the date of mailing of the notice
of denial. The assessor may deny a claim for exemption for the
current year and for the 3 immediately preceding calendar years. If
the assessor denies an existing claim for exemption, the assessor
shall remove the exemption of the property and, if the tax roll is
in the local tax collecting unit's possession, amend the tax roll
to reflect the denial and the local treasurer shall within 30 days
of the date of the denial issue a corrected tax bill for any
additional taxes with interest at the rate of 1.25% per month or
fraction of a month and penalties computed from the date the taxes
were last payable without interest or penalty. If the tax roll is
in the county treasurer's possession, the tax roll shall be amended
to reflect the denial and the county treasurer shall within 30 days
of the date of the denial prepare and submit a supplemental tax
bill for any additional taxes, together with interest at the rate
of 1.25% per month or fraction of a month and penalties computed
from the date the taxes were last payable without interest or
penalty. Interest on any tax set forth in a corrected or
supplemental tax bill shall again begin to accrue 60 days after the
date the corrected or supplemental tax bill is issued at the rate
of 1.25% per month or fraction of a month. Taxes levied in a
corrected or supplemental tax bill shall be returned as delinquent
on the March 1 in the year immediately succeeding the year in which
the corrected or supplemental tax bill is issued. If the assessor
denies an existing claim for exemption, the interest due shall be
distributed
as provided in subsection (25). (24).
However, if the
property has been transferred to a bona fide purchaser before
additional taxes were billed to the seller as a result of the
denial of a claim for exemption, the taxes, interest, and penalties
shall not be a lien on the property and shall not be billed to the
bona fide purchaser, and 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 notify
the department of treasury of the amount of tax due, interest, and
penalties through the date of that notification. The department of
treasury shall then assess the owner who claimed the exemption
under this section for the tax, interest, and penalties accruing as
a result of the denial of the claim for exemption, if any, as for
unpaid taxes provided under 1941 PA 122, MCL 205.1 to 205.31, and
shall deposit any tax or penalty collected into the state school
aid fund and shall distribute any interest collected as provided in
subsection
(25). (24). The denial shall be made on a form
prescribed by the department of treasury. If the property for which
the assessor has denied a claim for exemption under this subsection
is located in a county in which the county treasurer or the county
equalization director have elected to audit exemptions under
subsection (10), the assessor shall notify the county treasurer or
the county equalization director of the denial under this
subsection.
(7) If the assessor of the local tax collecting unit believes
that the property for which the exemption is claimed is not the
principal residence of the owner claiming the exemption and has not
denied the claim, the assessor shall include a recommendation for
denial with any affidavit that is forwarded to the department of
treasury or, for an existing claim, shall send a recommendation for
denial to the department of treasury, stating the reasons for the
recommendation.
(8) The department of treasury shall determine if the property
is the principal residence of the owner claiming the exemption.
Except as otherwise provided in subsection (21), the department of
treasury may review the validity of exemptions for the current
calendar year and for the 3 immediately preceding calendar years.
Except as otherwise provided in subsection (5), if the department
of treasury determines that the property is not the principal
residence of the owner claiming the exemption, the department shall
send a notice of that determination to the local tax collecting
unit and to the owner of the property claiming the exemption,
indicating that the claim for exemption is denied, stating the
reason for the denial, and advising the owner claiming the
exemption
of the right to appeal the determination to the
department
of treasury and what those rights of appeal are. that
the denial may be appealed to the residential property and small
claims division of the Michigan tax tribunal within 60 days after
the date of mailing of the notice of denial. The department of
treasury may issue a notice denying a claim if an owner fails to
respond within 30 days of receipt of a request for information from
that department. An owner may appeal the denial of a claim of
exemption
to the department of treasury residential
property and
small
claims division of the Michigan tax tribunal within 35 60
days
after the date of receipt mailing of the notice of
denial. An
appeal
to the department of treasury shall be conducted according
to
the provisions for an informal conference in section 21 of 1941
PA
122, MCL 205.21. Within 10 days after acknowledging an appeal of
a
denial of a claim of exemption, the department of treasury shall
notify
the assessor and the treasurer for the county in which the
property
is located that an appeal has been filed. Upon receipt of
a notice that the department of treasury has denied a claim for
exemption, the assessor shall remove the exemption of the property
and, if the tax roll is in the local tax collecting unit's
possession, amend the tax roll to reflect the denial and the local
treasurer shall within 30 days of the date of the denial issue a
corrected tax bill for any additional taxes with interest at the
rate of 1.25% per month or fraction of a month and penalties
computed from the date the taxes were last payable without interest
and penalty. If the tax roll is in the county treasurer's
possession, the tax roll shall be amended to reflect the denial and
the county treasurer shall within 30 days of the date of the denial
prepare and submit a supplemental tax bill for any additional
taxes, together with interest at the rate of 1.25% per month or
fraction of a month and penalties computed from the date the taxes
were last payable without interest or penalty. Interest on any tax
set forth in a corrected or supplemental tax bill shall again begin
to accrue 60 days after the date the corrected or supplemental tax
bill is issued at the rate of 1.25% per month or fraction of a
month. The department of treasury may waive interest on any tax set
forth in a corrected or supplemental tax bill for the current tax
year and the immediately preceding 3 tax years if the assessor of
the local tax collecting unit files with the department of treasury
a sworn affidavit in a form prescribed by the department of
treasury stating that the tax set forth in the corrected or
supplemental tax bill is a result of the assessor's classification
error or other error or the assessor's failure to rescind the
exemption after the owner requested in writing that the exemption
be rescinded. Taxes levied in a corrected or supplemental tax bill
shall be returned as delinquent on the March 1 in the year
immediately succeeding the year in which the corrected or
supplemental tax bill is issued. If the department of treasury
denies an existing claim for exemption, the interest due shall be
distributed
as provided in subsection (25). (24).
However, if the
property has been transferred to a bona fide purchaser before
additional taxes were billed to the seller as a result of the
denial of a claim for exemption, the taxes, interest, and penalties
shall not be a lien on the property and shall not be billed to the
bona fide purchaser, and 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 notify
the department of treasury of the amount of tax due and interest
through the date of that notification. The department of treasury
shall then assess the owner who claimed the exemption under this
section for the tax and interest plus penalty accruing as a result
of the denial of the claim for exemption, if any, as for unpaid
taxes provided under 1941 PA 122, MCL 205.1 to 205.31, and shall
deposit any tax or penalty collected into the state school aid fund
and shall distribute any interest collected as provided in
subsection
(25).(24).
(9) The department of treasury may enter into an agreement
regarding the implementation or administration of subsection (8)
with the assessor of any local tax collecting unit in a county that
has not elected to audit exemptions claimed under this section as
provided in subsection (10). The agreement may specify that for a
period of time, not to exceed 120 days, the department of treasury
will not deny an exemption identified by the department of treasury
in the list provided under subsection (11).
(10) A county may elect to audit the exemptions claimed under
this section in all local tax collecting units located in that
county as provided in this subsection. The election to audit
exemptions shall be made by the county treasurer, or by the county
equalization director with the concurrence by resolution of the
county board of commissioners. The initial election to audit
exemptions shall require an audit period of 2 years. Before 2009,
subsequent elections to audit exemptions shall be made every 2
years and shall require 2 annual audit periods. Beginning in 2009,
an election to audit exemptions shall be made every 5 years and
shall require 5 annual audit periods. An election to audit
exemptions shall be made by submitting an election to audit form to
the assessor of each local tax collecting unit in that county and
to the department of treasury not later than April 1 preceding the
October 1 in the year in which an election to audit is made. The
election to audit form required under this subsection shall be in a
form prescribed by the department of treasury. If a county elects
to audit the exemptions claimed under this section, the department
of treasury may continue to review the validity of exemptions as
provided in subsection (8). If a county does not elect to audit the
exemptions claimed under this section as provided in this
subsection, the department of treasury shall conduct an audit of
exemptions claimed under this section in the initial 2-year audit
period for each local tax collecting unit in that county unless the
department of treasury has entered into an agreement with the
assessor for that local tax collecting unit under subsection (9).
(11) If a county elects to audit the exemptions claimed under
this section as provided in subsection (10) and the county
treasurer or his or her designee or the county equalization
director or his or her designee believes that the property for
which an exemption is claimed is not the principal residence of the
owner claiming the exemption, the county treasurer or his or her
designee or the county equalization director or his or her designee
may, except as otherwise provided in subsection (5), deny an
existing claim by notifying the owner, the assessor of the local
tax collecting unit, and the department of treasury in writing of
the reason for the denial and advising the owner that the denial
may be appealed to the residential property and small claims
division
of the Michigan tax tribunal within 35 60 days after the
date of mailing of the notice of denial. The county treasurer or
his or her designee or the county equalization director or his or
her designee may deny a claim for exemption for the current year
and for the 3 immediately preceding calendar years. If the county
treasurer or his or her designee or the county equalization
director or his or her designee denies an existing claim for
exemption, the county treasurer or his or her designee or the
county equalization director or his or her designee shall direct
the assessor of the local tax collecting unit in which the property
is located to remove the exemption of the property from the
assessment roll and, if the tax roll is in the local tax collecting
unit's possession, direct the assessor of the local tax collecting
unit to amend the tax roll to reflect the denial and the treasurer
of the local tax collecting unit shall within 30 days of the date
of the denial issue a corrected tax bill for any additional taxes
with interest at the rate of 1.25% per month or fraction of a month
and penalties computed from the date the taxes were last payable
without interest and penalty. If the tax roll is in the county
treasurer's possession, the tax roll shall be amended to reflect
the denial and the county treasurer shall within 30 days of the
date of the denial prepare and submit a supplemental tax bill for
any additional taxes, together with interest at the rate of 1.25%
per month or fraction of a month and penalties computed from the
date the taxes were last payable without interest or penalty.
Interest on any tax set forth in a corrected or supplemental tax
bill shall again begin to accrue 60 days after the date the
corrected or supplemental tax bill is issued at the rate of 1.25%
per month or fraction of a month. Taxes levied in a corrected or
supplemental tax bill shall be returned as delinquent on the March
1 in the year immediately succeeding the year in which the
corrected or supplemental tax bill is issued. If the county
treasurer or his or her designee or the county equalization
director or his or her designee denies an existing claim for
exemption, the interest due shall be distributed as provided in
subsection
(25). (24). However, if the property has been
transferred to a bona fide purchaser before additional taxes were
billed to the seller as a result of the denial of a claim for
exemption, the taxes, interest, and penalties shall not be a lien
on the property and shall not be billed to the bona fide purchaser,
and 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 notify the department
of treasury of the amount of tax due and interest through the date
of that notification. The department of treasury shall then assess
the owner who claimed the exemption under this section for the tax
and interest plus penalty accruing as a result of the denial of the
claim for exemption, if any, as for unpaid taxes provided under
1941 PA 122, MCL 205.1 to 205.31, and shall deposit any tax or
penalty collected into the state school aid fund and shall
distribute
any interest collected as provided in subsection (25).
(24). The department of treasury shall annually provide the county
treasurer or his or her designee or the county equalization
director or his or her designee a list of parcels of property
located in that county for which an exemption may be erroneously
claimed. The county treasurer or his or her designee or the county
equalization director or his or her designee shall forward copies
of the list provided by the department of treasury to each assessor
in each local tax collecting unit in that county within 10 days of
receiving the list.
(12) If a county elects to audit exemptions claimed under this
section as provided in subsection (10), the county treasurer or the
county equalization director may enter into an agreement with the
assessor of a local tax collecting unit in that county regarding
the implementation or administration of this section. The agreement
may specify that for a period of time, not to exceed 120 days, the
county will not deny an exemption identified by the department of
treasury in the list provided under subsection (11).
(13) An owner may appeal a denial by the assessor of the local
tax collecting unit under subsection (6), a final decision of the
department of treasury under subsection (8), or a denial by the
county treasurer or his or her designee or the county equalization
director or his or her designee under subsection (11) to the
residential property and small claims division of the Michigan tax
tribunal
within 35 60 days after
the date of mailing of notice of
that decision. An owner is not required to pay the amount of tax in
dispute
in order to appeal a denial of a claim of exemption to the
department
of treasury or to receive a final
determination of the
residential property and small claims division of the Michigan tax
tribunal. However, interest at the rate of 1.25% per month or
fraction of a month and penalties shall accrue and be computed from
the date the taxes were last payable without interest and penalty.
If the residential property and small claims division of the
Michigan tax tribunal grants an owner's appeal of a denial and that
owner has paid the interest due as a result of a denial under
subsection (6), (8), or (11), the interest received after a
distribution
was made under subsection (25) (24)
shall be refunded.
(14) For taxes levied after December 31, 2005, for each county
in which the county treasurer or the county equalization director
does not elect to audit the exemptions claimed under this section
as provided in subsection (10), the department of treasury shall
conduct an annual audit of exemptions claimed under this section
for the current calendar year.
(15) Except as otherwise provided in subsection (5), an
affidavit filed by an owner for the exemption under this section
rescinds all previous exemptions filed by that owner for any other
property. The department of treasury shall notify the assessor of
the local tax collecting unit in which the property for which a
previous exemption was claimed is located if the previous exemption
is rescinded by the subsequent affidavit. When an exemption is
rescinded, the assessor of the local tax collecting unit shall
remove the exemption effective December 31 of the year in which the
affidavit was filed that rescinded the exemption. For any year for
which the rescinded exemption has not been removed from the tax
roll, the exemption shall be denied as provided in this section.
However, interest and penalty shall not be imposed for a year for
which a rescission form has been timely filed under subsection (5).
(16)
Except as otherwise provided in subsection (30), (28), if
the principal residence is part of a unit in a multiple-unit
dwelling or a dwelling unit in a multiple-purpose structure, an
owner shall claim an exemption for only that portion of the total
taxable value of the property used as the principal residence of
that owner in a manner prescribed by the department of treasury. If
a portion of a parcel for which the owner claims an exemption is
used for a purpose other than as a principal residence, the owner
shall claim an exemption for only that portion of the taxable value
of the property used as the principal residence of that owner in a
manner prescribed by the department of treasury.
(17) When a county register of deeds records a transfer of
ownership of a property, he or she shall notify the local tax
collecting unit in which the property is located of the transfer.
(18) The department of treasury shall make available the
affidavit forms and the forms to rescind an exemption, which may be
on the same form, to all city and township assessors, county
equalization officers, county registers of deeds, and closing
agents. A person who prepares a closing statement for the sale of
property shall provide affidavit and rescission forms to the buyer
and seller at the closing and, if requested by the buyer or seller
after execution by the buyer or seller, shall file the forms with
the local tax collecting unit in which the property is located. If
a closing statement preparer fails to provide exemption affidavit
and rescission forms to the buyer and seller, or fails to file the
affidavit and rescission forms with the local tax collecting unit
if requested by the buyer or seller, the buyer may appeal to the
department
of treasury residential
property and small claims
division
of the Michigan tax tribunal within 30
60 days after
the
date of mailing of notice to the buyer that an exemption was not
recorded.
If the department of treasury determines that the buyer
qualifies
for the exemption, the department of treasury shall
notify
the assessor of the local tax collecting unit that the
exemption
is granted and the assessor of the local tax collecting
unit
or, if the tax roll is in the possession of the county
treasurer,
the county treasurer shall correct the tax roll to
reflect
the exemption. This subsection does
not create a cause of
action at law or in equity against a closing statement preparer who
fails to provide exemption affidavit and rescission forms to a
buyer and seller or who fails to file the affidavit and rescission
forms with the local tax collecting unit when requested to do so by
the buyer or seller.
(19) An owner who owned and occupied a principal residence on
May 1 for taxes levied before January 1, 2012 for which the
exemption
was not on the tax roll may file an appeal with the July
board
of review or December board of review residential property
and small claims division of the Michigan tax tribunal in the year
for which the exemption was claimed or the immediately succeeding 3
years. For taxes levied after December 31, 2011, an owner who owned
and occupied a principal residence on June 1 or November 1 for
which the exemption was not on the tax roll may file an appeal with
the
July board of review or December board of review residential
property and small claims division of the Michigan tax tribunal in
the year for which the exemption was claimed or the immediately
succeeding
3 years. If an appeal of a claim for exemption that was
not
on the tax roll is received not later than 5 days prior to the
date
of the December board of review, the local tax collecting unit
shall
convene a December board of review and consider the appeal
pursuant
to this section and section 53b.
(20) An owner who owned and occupied a principal residence
within the time period prescribed in subsection (2) in any year
before the 3 immediately preceding tax years for which the
exemption was not on the tax roll as a result of a qualified error
on the part of the local tax collecting unit may file a request for
the exemption for those tax years with the department of treasury.
The request for the exemption shall be in a form prescribed by the
department of treasury and shall include all documentation the
department of treasury considers necessary to consider the request
and to correct any affected official records if a qualified error
on the part of the local tax collecting unit is recognized and an
exemption is granted. If the department of treasury denies a
request for the exemption under this subsection, the owner is
responsible for all costs related to the request as determined by
the department of treasury. If the department of treasury grants a
request for the exemption under this subsection and the exemption
results in an overpayment of the tax in the years under
consideration, the department of treasury shall notify the
treasurer of the local tax collecting unit, the county treasurer,
and other affected officials of the error and the granting of the
request for the exemption and all affected official records shall
be corrected consistent with guidance provided by the department of
treasury. If granting the request for the exemption results in an
overpayment, a rebate, including any interest paid by the owner,
shall be paid to the owner within 30 days of the receipt 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. A local tax collecting
unit responsible for a qualified error under this subsection shall
reimburse each county treasurer and other affected local official
required to correct official records under this subsection for the
costs incurred in complying with this subsection.
(21) If an owner of property received a principal residence
exemption to which that owner was not entitled in any year before
the 3 immediately preceding tax years, as a result of a qualified
error on the part of the local tax collecting unit, the department
of treasury may deny the principal residence exemption as provided
in subsection (8). If the department of treasury denies an
exemption under this subsection, the owner shall be issued a
corrected or supplemental tax bill as provided in subsection (8),
except interest shall not accrue until 60 days after the date the
corrected or supplemental tax bill is issued. A local tax
collecting unit responsible for a qualified error under this
subsection shall reimburse each county treasurer and other affected
local official required to correct official records under this
subsection for the costs incurred in complying with this
subsection.
(22) If the assessor or treasurer of the local tax collecting
unit believes that the department of treasury erroneously denied a
claim for exemption, the assessor or treasurer may submit written
information supporting the owner's claim for exemption to the
department of treasury within 35 days of the owner's receipt of the
notice denying the claim for exemption. If, after reviewing the
information provided, the department of treasury determines that
the claim for exemption was erroneously denied, the department of
treasury shall grant the exemption and the tax roll shall be
amended to reflect the exemption.
(23) If granting the exemption under this section results in
an overpayment of the tax, a rebate, including any interest paid,
shall be made to the taxpayer 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
within 30 days of the date the exemption is granted. The rebate
shall
be without interest. If an exemption for property classified
as
timber-cutover real property is granted under this section for
the
2008 or 2009 tax year, the tax roll shall be corrected and any
delinquent
and unpaid penalty, interest, and tax resulting from
that
property not having been exempt under this section for the
2008
or 2009 tax year shall be waived.
(24)
If an exemption under this section is erroneously granted
for
an affidavit filed before October 1, 2003, an owner may request
in
writing that the department of treasury withdraw the exemption.
The
request to withdraw the exemption shall be received not later
than
November 1, 2003. If an owner requests that an exemption be
withdrawn,
the department of treasury shall issue an order
notifying
the local assessor that the exemption issued under this
section
has been denied based on the owner's request. If an
exemption
is withdrawn, 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 the 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. Unless a
denial
has been issued prior to July 1, 2003, if an owner requests
that
an exemption under this section be withdrawn and that owner
pays
the corrected tax bill issued under this subsection within 30
days
after the corrected tax bill is issued, that owner is not
liable
for any penalty or interest on the additional tax. An owner
who
pays a corrected tax bill issued under this subsection more
than
30 days after the corrected tax bill is issued is liable for
the
penalties and interest that would have accrued if the exemption
had
not been granted from the date the taxes were originally
levied.
(24) (25)
Subject to subsection (26), (25), interest
at the
rate of 1.25% per month or fraction of a month collected under
subsection (6), (8), or (11) shall be distributed as follows:
(a) If the assessor of the local tax collecting unit denies
the exemption under this section, as follows:
(i) To the local tax collecting unit, 70%.
(ii) To the department of treasury, 10%.
(iii) To the county in which the property is located, 20%.
(b) If the department of treasury denies the exemption under
this section, as follows:
(i) To the local tax collecting unit, 20%.
(ii) To the department of treasury, 70%.
(iii) To the county in which the property is located, 10%.
(c) If the county treasurer or his or her designee or the
county equalization director or his or her designee denies the
exemption under this section, as follows:
(i) To the local tax collecting unit, 20%.
(ii) To the department of treasury, 10%.
(iii) To the county in which the property is located, 70%.
(25) (26)
Interest distributed under
subsection (25) (24) is
subject to the following conditions:
(a) Interest distributed to a county shall be deposited into a
restricted fund to be used solely for the administration of
exemptions under this section. Money in that restricted fund shall
lapse to the county general fund on the December 31 in the year 3
years after the first distribution of interest to the county under
subsection
(25) (24) and on each succeeding December 31 thereafter.
(b) Interest distributed to the department of treasury shall
be deposited into the principal residence property tax exemption
audit fund, which is created within the state treasury. The state
treasurer may receive money or other assets from any source for
deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the
fund interest and earnings from fund investments. Money in the fund
shall be considered a work project account and at the close of the
fiscal year shall remain in the fund and shall not lapse to the
general fund. Money from the fund shall be expended, upon
appropriation, only for the purpose of auditing exemption
affidavits.
(26) (27)
Interest distributed under
subsection (25) (24) is
in addition to and shall not affect the levy or collection of the
county property tax administration fee established under this act.
(27) (28)
A cooperative housing corporation
is entitled to a
full or partial exemption under this section for the tax year in
which the cooperative housing corporation files all of the
following with the local tax collecting unit in which the
cooperative housing corporation is located if filed within the time
period prescribed in subsection (2):
(a) An affidavit form.
(b) A statement of the total number of units owned by the
cooperative housing corporation and occupied as the principal
residence of a tenant stockholder as of the date of the filing
under this subsection.
(c) A list that includes the name, address, and social
security number of each tenant stockholder of the cooperative
housing corporation occupying a unit in the cooperative housing
corporation as his or her principal residence as of the date of the
filing under this subsection.
(d) A statement of the total number of units of the
cooperative housing corporation on which an exemption under this
section was claimed and that were transferred in the tax year
immediately preceding the tax year in which the filing under this
section was made.
(29)
Before May 1, 2004 and before May 1, 2005, the treasurer
of
each county shall forward to the department of education a
statement
of the taxable value of each school district and fraction
of
a school district within the county for the preceding 4 calendar
years.
This requirement is in addition to the requirement set forth
in
section 151 of the state school aid act of 1979, 1979 PA 94, MCL
388.1751.
(28) (30)
For a parcel of property open and
available for use
as a bed and breakfast, the portion of the taxable value of the
property used as a principal residence under subsection (16) shall
be calculated in the following manner:
(a) Add all of the following:
(i) The square footage of the property used exclusively as that
owner's principal residence.
(ii) 50% of the square footage of the property's common area.
(iii) If the property was not open and available for use as a
bed and breakfast for 90 or more consecutive days in the
immediately preceding 12-month period, the result of the following
calculation:
(A) Add the square footage of the property that is open and
available regularly and exclusively as a bed and breakfast, and 50%
of the square footage of the property's common area.
(B) Multiply the result of the calculation in sub-subparagraph
(A) by a fraction, the numerator of which is the number of
consecutive days in the immediately preceding 12-month period that
the property was not open and available for use as a bed and
breakfast and the denominator of which is 365.
(b) Divide the result of the calculation in subdivision (a) by
the total square footage of the property.
(29) (31)
The owner claiming an exemption
under this section
for property open and available as a bed and breakfast shall file
an affidavit claiming the exemption within the time period
prescribed in subsection (2) with the local tax collecting unit in
which the property is located. The affidavit shall be in a form
prescribed by the department of treasury.
(30) (32)
As used in this section:
(a) "Bed and breakfast" means property classified as
residential real property under section 34c that meets all of the
following criteria:
(i) Has 10 or fewer sleeping rooms, including sleeping rooms
occupied by the owner of the property, 1 or more of which are
available for rent to transient tenants.
(ii) Serves meals at no extra cost to its transient tenants.
(iii) Has a smoke detector in proper working order in each
sleeping room and a fire extinguisher in proper working order on
each floor.
(b) "Common area" includes, but is not limited to, a kitchen,
dining room, living room, fitness room, porch, hallway, laundry
room, or bathroom that is available for use by guests of a bed and
breakfast or, unless guests are specifically prohibited from access
to the area, an area that is used to provide a service to guests of
a bed and breakfast.
(c) "Qualified error" means that term as defined in section
53b.53e.
Sec. 7ee. (1) Qualified agricultural 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) Qualified agricultural property that is classified as
agricultural under section 34c is exempt under subsection (1) and
the owner is not required to file an affidavit claiming an
exemption with the local tax collecting unit unless requested by
the assessor to determine whether the property includes structures
that are not exempt under this section. To claim an exemption under
subsection (1) for qualified agricultural property that is not
classified as agricultural under section 34c, the owner shall file
an affidavit claiming the exemption with the local tax collecting
unit by May 1.
(3) The affidavit shall be on a form prescribed by the
department of treasury.
(4) For property classified as agricultural, and upon receipt
of an affidavit filed under subsection (2) for property not
classified as agricultural, the assessor shall determine if the
property is qualified agricultural 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 agricultural property as defined in section
7dd. An owner is required to file a new claim for exemption on the
same property as requested by the assessor under subsection (2).
(5) Not more than 90 days after all or a portion of the
exempted property is no longer qualified agricultural 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 $200.00. This penalty
shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and
shall be deposited in the state school aid fund established in
section 11 of article IX of the state constitution of 1963. This
penalty may be waived by the department of treasury.
(6) An owner of property that is qualified agricultural
property on May 1 for which an exemption was not on the tax roll
may
file an appeal with the July or December board of review
residential property and small claims division of the Michigan tax
tribunal in the year the exemption was claimed or the immediately
succeeding year. An appeal shall be filed within 60 days after the
date of mailing of the tax bill. An owner of property that is
qualified agricultural 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.residential
property and small claims
division of the Michigan tax tribunal within 60 days of the denial.
An appeal to the residential property and small claims division of
the Michigan tax tribunal under this subsection may include the
current assessment year and the 3 immediately preceding years.
(7) If the assessor of the local tax collecting unit believes
that the property for which an exemption has been granted is not
qualified agricultural 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 property and
small claims division of the
Michigan tax tribunal within 60 days of the denial or modification.
(8) If an exemption under this section is erroneously granted,
an owner may request in writing that the local tax collecting unit
withdraw the exemption. If an owner requests that an exemption be
withdrawn, the local assessor shall notify the owner that the
exemption issued under this section has been denied based on that
owner's request. If an exemption is withdrawn, 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 the 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. If an owner requests that an exemption under this section
be withdrawn before that owner is contacted in writing by the local
assessor regarding that owner's eligibility for the exemption and
that owner pays the corrected tax bill issued under this subsection
within 30 days after the corrected tax bill is issued, that owner
is not liable for any penalty or interest on the additional tax. An
owner who pays a corrected tax bill issued under this subsection
more than 30 days after the corrected tax bill is issued is liable
for the penalties and interest that would have accrued if the
exemption had not been granted from the date the taxes were
originally levied.
Sec. 24c. (1) The assessor shall give to each owner or person
or persons listed on the assessment roll of the property a notice
by first-class mail of an increase in the tentative state equalized
valuation or the tentative taxable value for the year. The notice
shall specify each parcel of property, the tentative taxable value
for the current year, and the taxable value for the immediately
preceding year. The notice shall also specify the time and place of
the meeting of the board of review. The notice shall also specify
the difference between the property's tentative taxable value in
the current year and the property's taxable value in the
immediately preceding year.
(2) The notice shall include, in addition to the information
required by subsection (1), all of the following:
(a) The state equalized valuation for the immediately
preceding year.
(b) The tentative state equalized valuation for the current
year.
(c) The net change between the tentative state equalized
valuation for the current year and the state equalized valuation
for the immediately preceding year.
(d) The classification of the property as defined by section
34c.
(e) The inflation rate for the immediately preceding year as
defined in section 34d.
(f) A statement provided by the state tax commission
explaining the relationship between state equalized valuation and
taxable value. If the assessor believes that a transfer of
ownership has occurred in the immediately preceding year, the
statement shall state that the ownership was transferred and that
the taxable value of that property is the same as the state
equalized valuation of that property.
(g) The assessor's telephone number.
(h) A statement that the owner or person or persons listed on
the assessment roll may meet with the assessor prior to the board
of review.
(3) When required by the income tax act of 1967, 1967 PA 281,
MCL
206.1 to 206.532, 206.713,
the assessment notice shall include
or be accompanied by information or forms prescribed by the income
tax
act of 1967, 1967 PA 281, MCL 206.1 to 206.532.206.713.
(4) The assessment notice shall be addressed to the owner
according to the records of the assessor and mailed not less than
14 days before the meeting of the board of review. The failure to
send or receive an assessment notice does not invalidate an
assessment roll or an assessment on that property.
(5) The tentative state equalized valuation shall be
calculated by multiplying the assessment by the tentative equalized
valuation multiplier. If the assessor has made assessment
adjustments that would have changed the tentative multiplier, the
assessor may recalculate the multiplier for use in the notice.
(6) The state tax commission shall prepare a model assessment
notice form that shall be made available to local units of
government.
(7) The assessment notice under subsection (1) shall include
the following statement:
"If you purchased your principal residence after May 1 last
year, to claim the principal residence exemption, if you have not
already done so, you are required to file an affidavit before May
1.".
(8) For taxes levied after December 31, 2003, the assessment
notice under subsection (1) shall separately state the state
equalized valuation and taxable value for any leasehold
improvements.
Sec. 28. (1) Those electors of the township appointed by the
township board shall constitute a board of review for the township.
At least 2/3 of the members shall be property taxpayers of the
township. Members appointed to the board of review shall serve for
terms of 2 years beginning at noon on January 1 of each odd-
numbered year. Each member of the board of review shall qualify by
taking the constitutional oath of office within 10 days after
appointment. The township board may fill any vacancy that occurs in
the membership of the board of review. A member of the township
board is not eligible to serve on the board or to fill any vacancy.
The assessor for the township is not eligible to serve on the board
or to fill any vacancy. A spouse, mother, father, sister, brother,
son, or daughter, including an adopted child, of the assessor is
not eligible to serve on the board or to fill any vacancy. A
majority of the board of review constitutes a quorum for the
transaction of business, but a lesser number may adjourn and a
majority vote of those present shall decide all questions. The
assessor is not eligible to vote on any issue before the board of
review. At least 2 members of a 3-member board of review shall be
present to conduct any business or hearings of the board of review.
(2) The township board may appoint 3, 6, or 9 electors of the
township, who shall constitute a board of review for the township.
If 6 or 9 members are appointed as provided in this subsection, the
membership of the board of review shall be divided into board of
review committees consisting of 3 members each for the purpose of
hearing and deciding issues protested pursuant to section 30. Two
of the 3 members of a board of review committee constitute a quorum
for the transaction of the business of the committee. All meetings
of the members of the board of review and committees shall be held
during the same hours of the same day and at the same location.
(3) A township board may appoint not more than 2 alternate
members for the same term as regular members of the board of
review. Each alternate member shall be a property taxpayer of the
township. Alternate members shall qualify by taking the
constitutional oath of office within 10 days after appointment. The
township board may fill any vacancy that occurs in the alternate
membership of the board of review. A member of the township board
is not eligible to serve as an alternate member or to fill any
vacancy. The assessor for the township is not eligible to serve as
an alternate member or to fill any vacancy. A spouse, mother,
father, sister, brother, son, or daughter, including an adopted
child, of the assessor is not eligible to serve as an alternate
member or to fill any vacancy. An alternate member may be called to
perform the duties of a regular member of the board of review in
the absence of a regular member. An alternate member may also be
called to perform the duties of a regular member of the board of
review for the purpose of reaching a decision in issues protested
in which a regular member has abstained for reasons of conflict of
interest.
(4) The size, composition, and manner of appointment of the
board of review of a city may be prescribed by the charter of a
city. In the absence of or in place of a charter provision, the
governing body of the city, by ordinance, may establish the city
board of review in the same manner and for the same purposes as
provided by this section for townships. Notwithstanding any charter
provision to the contrary, the assessor for the city is not
eligible to serve on the board of review, to serve as an alternate
member, or to fill any vacancy.
(5) A majority of the entire board of review membership shall
indorse the assessment roll as provided in section 30. The duties
and responsibilities of the board contained in section 29 shall be
carried out by the entire membership of the board of review and a
majority of the membership constitutes a quorum for those purposes.
(6) An assessor for a township or city shall provide testimony
and information to the board of review if such information is
requested by the board of review or if the assessor determines it
is necessary to provide further factual information in response to
an appeal.
Sec. 29. (1) On the Tuesday immediately following the first
Monday in March, the board of review of each township shall meet at
the office of the supervisor, at which time the supervisor shall
submit to the board the assessment roll for the current year, as
prepared by the supervisor, and the board shall proceed to examine
and review the assessment roll.
(2) During that day, and the day following, if necessary, the
board, of its own motion, or on sufficient cause being shown by a
person, shall add to the roll the names of persons, the value of
personal property, and the description and value of real property
liable to assessment in the township, omitted from the assessment
roll. The board shall correct errors in the names of persons, in
the descriptions of property upon the roll, and in the assessment
and valuation of property. The board shall do whatever else is
necessary to make the roll comply with this act.
(3) The roll shall be reviewed and all evidence considered
according to the facts existing on the tax day. The board shall not
add to the roll property not subject to taxation on the tax day,
and the board shall not remove from the roll property subject to
taxation
on that the tax day regardless of a change in the taxable
status
of the property since that the
tax day.
(4) The board shall pass upon each valuation and each
interest, and shall enter the valuation of each, as fixed by the
board, in a separate column.
(5) The roll as prepared by the supervisor shall stand as
approved and adopted as the act of the board of review, except as
changed by a vote of the board. If for any cause a quorum does not
assemble during the days above mentioned, the roll as prepared by
the supervisor shall stand as if approved by the board of review.
(6) The business which the board may perform shall be
conducted at a public meeting of the board held in compliance with
Act
No. 267 of the Public Acts of 1976, being sections 15.261 to
15.275
of the Michigan Compiled Laws. the
open meetings act, 1976
PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and
place
of the meeting shall be given in the manner required by Act
No.
267 of the Public Acts of 1976. the
open meetings act, 1976 PA
267, MCL 15.261 to 15.275. Notice of the date, time, and place of
the meeting of the board of review shall be given at least 1 week
before the meeting by publication in a generally circulated
newspaper serving the area. The notice shall appear in 3 successive
issues of the newspaper where available; otherwise, by the posting
of the notice in 5 conspicuous places in the township.
(7) When the board of review makes a change in the assessment
of property or adds property to the assessment roll, the person
chargeable
with the assessment shall be promptly notified in such a
manner
as that will assure the person opportunity to attend the
second meeting of the board of review provided in section 30.
Sec. 30. (1) Except as otherwise provided in subsection (2),
the board of review shall meet on the second Monday in March.
(2) The governing body of the city or township may authorize,
by adoption of an ordinance or resolution, alternative starting
dates in March when the board of review shall initially meet, which
alternative starting dates shall be the Tuesday or Wednesday
following the second Monday of March.
(3) The first meeting of the board of review shall start not
earlier than 9 a.m. and not later than 3 p.m. and last for not less
than 6 hours. The board of review shall also meet for not less than
6 hours during the remainder of that week. Persons or their agents
who have appeared to file a protest before the board of review at a
scheduled meeting or at a scheduled appointment shall be afforded
an opportunity to be heard by the board of review. The board of
review shall schedule a final meeting after the board of review
makes a change in the assessed value or tentative taxable value of
property, adds property to the assessment roll, exempts the
homestead of a disabled veteran or the unremarried surviving spouse
of a disabled veteran under section 7b, exempts a person's
principal residence, in whole or in part, by reason of poverty
under section 7u, or exempts personal property under section 9m,
9n, or 9o and removes it from the assessment roll. The board of
review shall hold at least 3 hours of its required sessions for
review of assessment rolls during the week of the second Monday in
March after 6 p.m.
(4) A board of review shall meet a total of at least 12 hours
during the week beginning the second Monday in March to hear
protests. At the request of a person whose property is assessed on
the assessment roll or of his or her agent, and if sufficient cause
is shown, the board of review shall correct the assessed value or
tentative taxable value of the property in a manner that will make
the valuation of the property relatively just and proper under this
act. For a claim of exemption for the homestead of a disabled
veteran or the unremarried surviving spouse of a disabled veteran
under section 7b, if an exemption is approved, the board of review
shall remove the homestead from the tax roll and file an affidavit
with the proper officials involved in the assessment and collection
of taxes and all affected official records shall be corrected. For
a claim of exemption by reason of poverty under section 7u, if an
exemption is approved, the board of review shall remove the
person's principal residence, in whole or in part, from the tax
roll and file an affidavit with the proper officials involved in
the assessment and collection of taxes and all affected official
records shall be corrected. For the appeal of a denial of a claim
of exemption for personal property under section 9m, 9n, or 9o, or
for an appeal under section 9o(7), if an exemption is approved, the
board of review shall remove the personal property from the
assessment roll. The board of review may examine under oath the
person making the application, or any other person concerning the
matter. A member of the board of review may administer the oath. A
nonresident taxpayer may file his or her appearance, protest, and
papers in support of the protest by letter, and his or her personal
appearance is not required. The board of review, on its own motion,
may change assessed values or tentative taxable values or add to
the roll property omitted from the roll that is liable to
assessment if the person who is assessed for the altered valuation
or for the omitted property is promptly notified and granted an
opportunity to file objections to the change at the meeting or at a
subsequent meeting. An objection to a change in assessed value or
tentative taxable value or to the addition of property to the tax
roll shall be promptly heard and determined. Each person who makes
a request, protest, or application to the board of review for the
correction of the assessed value or tentative taxable value of the
person's property, for the exemption of the homestead of a disabled
veteran or the unremarried surviving spouse of a disabled veteran
under section 7b, for the exemption of that person's principal
residence, in whole or in part, by reason of poverty under section
7u, or for the exemption of that person's personal property under
section 9m, 9n, or 9o shall be notified in writing, not later than
the first Monday in June, of the board of review's action on the
request, protest, or application, of the state equalized valuation
or tentative taxable value of the property, and of information
regarding the right of further appeal to the tax tribunal.
Information regarding the right of further appeal to the tax
tribunal shall include, but is not limited to, a statement of the
right to appeal to the tax tribunal, the address of the tax
tribunal, and the final date for filing an appeal with the tax
tribunal.
(5) If an exemption for personal property under section 9m,
9n, or 9o 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
the board of review does not approve an exemption under section 9m,
9n, or 9o, the person claiming the exemption for that personal
property may appeal that decision in writing to the Michigan tax
tribunal. A correction under this subsection that approves an
exemption under section 9o may be made for the year in which the
appeal was filed and the immediately preceding 3 tax years. A
correction under this subsection that approves an exemption under
section 9m or 9n may be made only for the year in which the appeal
was filed.
(6) After the board of review completes the review of the
assessment roll, a majority of the board of review shall indorse
the roll and sign a statement to the effect that the roll is the
assessment roll for the year in which it has been prepared and
approved by the board of review.
(7) The completed assessment roll shall be delivered by the
appropriate assessing officer to the county equalization director
not later than the tenth day after the adjournment of the board of
review, or the Wednesday following the first Monday in April,
whichever date occurs first.
(8) The governing body of the township or city may authorize,
by adoption of an ordinance or resolution, a resident taxpayer to
file his or her protest before the board of review by letter
without a personal appearance by the taxpayer or his or her agent.
If that ordinance or resolution is adopted, the township or city
shall include a statement notifying taxpayers of this option in
each assessment notice under section 24c and on each notice or
publication of the meeting of the board of review.
Sec. 34c. (1) Not later than the first Monday in March in each
year, the assessor shall classify every item of assessable property
according to the definitions contained in this section. Following
the March board of review, the assessor shall tabulate the total
number of items and the valuations as approved by the board of
review for each classification and for the totals of real and
personal property in the local tax collecting unit. The assessor
shall transmit to the county equalization department and to the
state tax commission the tabulation of assessed valuations and
other statistical information the state tax commission considers
necessary to meet the requirements of this act and 1911 PA 44, MCL
209.1 to 209.8.
(2) The classifications of assessable real property are
described as follows:
(a) Agricultural real property includes parcels used partially
or wholly for agricultural operations, with or without buildings.
For taxes levied after December 31, 2002, agricultural real
property includes buildings on leased land used for agricultural
operations. If a parcel of real property is classified as
agricultural real property and is engaged in agricultural
operations, any contiguous parcel owned by the same taxpayer, that
is a vacant parcel, a wooded parcel, or a parcel on which is
located 1 or more agricultural outbuildings that comprise more than
50% of the taxable value of all buildings on that parcel as
indicated by the assessment records for the local tax collecting
unit in which that parcel is located, shall be classified as
agricultural real property. Contiguity is not broken by a boundary
between local tax collecting units, a section boundary, a road, a
right-of-way, or property purchased or taken under condemnation
proceedings by a public utility for power transmission lines if the
2 parcels separated by the purchased or condemned property were a
single parcel prior to the sale or condemnation. For purposes of
this subsection, contiguity requires that the parcel classified as
agricultural real property by reason of its agriculture use and the
vacant parcel, wooded parcel, or parcel on which is located 1 or
more agricultural outbuildings must be immediately adjacent to each
other, without intervening parcels that do not qualify for
classification as agricultural real property based on their actual
agricultural use. It is the intent of the legislature that if a
parcel of real property is classified as agricultural real property
and is engaged in agricultural operations, any contiguous parcel
owned by the same taxpayer, that is a vacant parcel, a wooded
parcel, or a parcel on which is located 1 or more agricultural
outbuildings that comprise more than 50% of the taxable value of
all buildings on that parcel as indicated by the assessment records
for the local tax collecting unit in which that parcel is located,
shall be classified as agricultural real property even if the
contiguous parcels are located in different local tax collecting
units. Property shall not lose its classification as agricultural
real property as a result of an owner or lessee of that property
implementing a wildlife risk mitigation action plan. As used in
this subdivision:
(i) "Agricultural outbuilding" means a building or other
structure primarily used for agricultural operations.
(ii) "Agricultural operations" means the following:
(A) Farming in all its branches, including cultivating soil.
(B) Growing and harvesting any agricultural, horticultural, or
floricultural commodity.
(C) Dairying.
(D) Raising livestock, bees, fish, fur-bearing animals, or
poultry, including operating a game bird hunting preserve licensed
under part 417 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also
including farming operations that harvest cervidae on site where
not less than 60% of the cervidae were born as part of the farming
operation. As used in this subparagraph, "livestock" includes, but
is not limited to, cattle, sheep, new world camelids, goats, bison,
privately owned cervids, ratites, swine, equine, poultry,
aquaculture, and rabbits. Livestock does not include dogs and cats.
(E) Raising, breeding, training, leasing, or boarding horses.
(F) Turf and tree farming.
(G) Performing any practices on a farm incident to, or in
conjunction with, farming operations. A commercial storage,
processing, distribution, marketing, or shipping operation is not
part of agricultural operations.
(iii) "Project" means certain risk mitigating measures, which
may include, but are not limited to, the following:
(A) Making it difficult for wildlife to access feed by storing
livestock feed securely, restricting wildlife access to feeding and
watering areas, and deterring or reducing wildlife presence around
livestock feed by storing feed in an enclosed barn, wrapping bales
or covering stacks with tarps, closing ends of bags, storing grains
in animal-proof containers or bins, maintaining fences, practicing
small mammal and rodent control, or feeding away from wildlife
cover.
(B) Minimizing wildlife access to livestock feed and water by
feeding livestock in an enclosed area, feeding in open areas near
buildings and human activity, removing extra or waste feed when
livestock are moved, using hay feeders to reduce waste, using
artificial water systems to help keep livestock from sharing water
sources with wildlife, fencing off stagnant ponds, wetlands, or
areas of wildlife habitats that pose a disease risk, and keeping
mineral feeders near buildings and human activity or using devices
that restrict wildlife usage.
(iv) "Wildlife risk mitigation action plan" means a written
plan consisting of 1 or more projects to help reduce the risks of a
communicable disease spreading between wildlife and livestock that
is approved by the department of agriculture and rural development
under the animal industry act, 1988 PA 466, MCL 287.701 to 287.746.
(b) Commercial real property includes the following:
(i) Platted or unplatted parcels used for commercial purposes,
whether wholesale, retail, or service, with or without buildings.
(ii) Parcels used by fraternal societies.
(iii) Parcels used as golf courses, boat clubs, ski areas, or
apartment buildings with more than 4 units.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for commercial purposes.
(c) Developmental real property includes parcels containing
more than 5 acres without buildings, or more than 15 acres with a
market value in excess of its value in use. Developmental real
property may include farm land or open space land adjacent to a
population center, or farm land subject to several competing
valuation influences.
(d) Industrial real property includes the following:
(i) Platted or unplatted parcels used for manufacturing and
processing purposes, with or without buildings.
(ii) Parcels used for utilities sites for generating plants,
pumping stations, switches, substations, compressing stations,
warehouses, rights-of-way, flowage land, and storage areas.
(iii) Parcels used for removal or processing of gravel, stone,
or mineral ores.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for industrial purposes.
(v) For taxes levied after December 31, 2002, buildings on
leased land for utility purposes.
(e) Residential real property includes the following:
(i) Platted or unplatted parcels, with or without buildings,
and condominium apartments located within or outside a village or
city, which are used for, or probably will be used for, residential
purposes.
(ii) Parcels that are used for, or probably will be used for,
recreational purposes, such as lake lots and hunting lands, located
in an area used predominantly for recreational purposes.
(iii) For taxes levied after December 31, 2002, a home, cottage,
or cabin on leased land, and a mobile home that would be assessable
as real property under section 2a except that the land on which it
is located is not assessable because the land is exempt.
(f) Timber-cutover real property includes parcels that are
stocked with forest products of merchantable type and size, cutover
forest land with little or no merchantable products, and marsh
lands or other barren land. However, when a typical purchase of
this type of land is for residential or recreational uses, the
classification shall be changed to residential.
(3) The classifications of assessable personal property are
described as follows:
(a) Agricultural personal property includes any agricultural
equipment and produce not exempt by law.
(b) Commercial personal property includes the following:
(i) All equipment, furniture, and fixtures on commercial
parcels, and inventories not exempt by law.
(ii) All outdoor advertising signs and billboards.
(iii) Well drilling rigs and other equipment attached to a
transporting vehicle but not designed for operation while the
vehicle is moving on the highway.
(iv) Unlicensed commercial vehicles or commercial vehicles
licensed as special mobile equipment or by temporary permits.
(c) Industrial personal property includes the following:
(i) All machinery and equipment, furniture and fixtures, and
dies on industrial parcels, and inventories not exempt by law.
(ii) Personal property of mining companies.
(d) For taxes levied before January 1, 2003, residential
personal property includes a home, cottage, or cabin on leased
land, and a mobile home that would be assessable as real property
under section 2a except that the land on which it is located is not
assessable because the land is exempt.
(e) Utility personal property includes the following:
(i) Electric transmission and distribution systems, substation
equipment, spare parts, gas distribution systems, and water
transmission and distribution systems.
(ii) Oil wells and allied equipment such as tanks, gathering
lines, field pump units, and buildings.
(iii) Inventories not exempt by law.
(iv) Gas wells with allied equipment and gathering lines.
(v) Oil or gas field equipment stored in the open or in
warehouses such as drilling rigs, motors, pipes, and parts.
(vi) Gas storage equipment.
(vii) Transmission lines of gas or oil transporting companies.
(4) For taxes levied before January 1, 2003, buildings on
leased land of any classification are improvements where the owner
of the improvement is not the owner of the land or fee, the value
of the land is not assessed to the owner of the building, and the
improvement has been assessed as personal property pursuant to
section 14(6).
(5) If the total usage of a parcel includes more than 1
classification, the assessor shall determine the classification
that most significantly influences the total valuation of the
parcel.
(6)
An owner of any assessable property who disputes the
classification
of that parcel shall notify the assessor and may
protest
the assigned classification to the March board of review.
An
owner or assessor may appeal the decision of the March board of
review
by filing a petition with the state tax commission not later
than
June 30 in that tax year. The state tax commission shall
arbitrate
the petition based on the written petition and the
written
recommendations of the assessor and the state tax
commission
staff. An appeal may not be taken from the decision of
the
state tax commission regarding classification complaint
petitions
and the state tax commission's determination is final and
binding
for the year of the petition.assessable
property or an
assessor may protest the assigned classification of that assessable
property for the current year and the 3 immediately preceding years
by filing a petition with the March board of review or with the
July or December board of review. An owner of assessable property
or an assessor may appeal the decision of the March board of review
for the current year and the 3 immediately preceding years by
filing a petition with the state tax commission not later than July
31 in that tax year. An owner of assessable property or an assessor
may appeal the decision of the July or December board of review for
the current year and the 3 immediately preceding years by filing a
petition with the state tax commission not later than 60 days after
the decision of the July or December board of review. An owner of
assessable property or an assessor may appeal the decision of the
state tax commission for the current year and the 3 immediately
preceding years by filing a petition with the Michigan tax tribunal
not later than 60 days after the decision of the state tax
commission. An owner of assessable property or an assessor may
appeal the decision of the Michigan tax tribunal for the current
year and the 3 immediately preceding years by filing a petition
with the Michigan court of appeals not later than 21 days after the
decision of the Michigan tax tribunal.
(7)
The department of treasury may appeal the classification
of
any assessable property to the residential and small claims
division
of the Michigan tax tribunal not later than December 31 in
the
tax year for which the classification is appealed.
(7) (8)
This section shall not be construed
to encourage the
assessment of property at other than the uniform percentage of true
cash value prescribed by this act.
(8) (9)
The assessor of each city or
township in which is
located property that is subject to payment in lieu of taxes under
subpart 14 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place
that property on an assessment roll that is separate from the
assessment roll prepared under section 24. For purposes of
calculating the debt limitation imposed by section 11 of article
VII of the state constitution of 1963, the separate assessment roll
for property that is subject to payment in lieu of taxes under
subpart 14 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2152 to 324.2154, required by
this subsection shall be combined with the assessment roll prepared
under section 24.
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 (9), the board of review shall meet for the purposes
of
this section on Tuesday following the second Monday in December
and
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 subsections (6) and
(8)
and section 27a(4), a correction under this subsection may be
made
for the current year and the immediately preceding year only.
(2)
Action pursuant to subsection (1) may be initiated by the
taxpayer
or the assessing officer.
(1) (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, 7jj , 9m, 9n, and
9o.
and 34c and to consider
applications for exemptions provided
for under sections 7b and 7u. Except as otherwise provided in
subsection (4), the board of review shall meet for the purposes of
this section on Tuesday following the second Monday in December and
on Tuesday following the third Monday in July. If an exemption is
approved under section 7b for the homestead of a disabled veteran
or the unremarried surviving spouse of a disabled veteran, the
board of review shall remove the homestead from the tax roll and
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 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, 7jj , 9m, 9n, or 9o or approval of an
exemption under section 7b 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). 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 sections 7cc, 7ee,
section
7b or 7jj, and 9o, a correction
under this subsection shall
be made for the year in which the appeal is made only. If the board
of review approves an exemption or provides a rebate for property
under
section 7cc, 7ee, or 7b or
7jj as provided in this
subsection, the board of review shall require the owner to execute
the
affidavit provided for in section 7cc, 7ee, or 7b or 7jj. and
shall
forward a copy of any section 7cc affidavits to the
department
of treasury.
(4)
If an exemption under section 7cc is approved by the board
of
review under this section, the provisions of section 7cc apply.
If
an exemption under section 7cc is not approved 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).
(2) If an exemption under section 7b is approved by the board
of review under this section, the provisions of section 7b apply.
If an exemption under section 7b is not approved by the board of
review under this section, a person claiming an exemption under
this section may appeal the decision of the July or December board
of review to the Michigan tax tribunal not later than 60 days after
the date of that decision.
(3) (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 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 approves 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)
For the appeal of a denial of a claim of exemption for
personal
property under section 9m, 9n, or 9o, if an exemption is
approved,
the board of review shall remove the personal property
from
the assessment roll.
(8)
If an exemption for personal property under section 9m,
9n,
or 9o 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
the
board of review does not approve an exemption under section 9m,
9n,
or 9o, the person claiming the exemption for that personal
property
may appeal that decision in writing to the Michigan tax
tribunal.
A correction under this subsection that approves an
exemption
under section 9o may be made for the year in which the
appeal
was filed and the immediately preceding 3 tax years. A
correction
under this subsection that approves an exemption under
section
9m or 9n may be made only for the year in which the appeal
was
filed.
(4) (9)
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.
(10)
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)
An error of measurement or calculation of the physical
dimensions
or components of the real property being assessed.
(e)
An error of omission or inclusion of a part of the real
property
being assessed.
(f)
An error regarding the correct taxable status of the real
property
being assessed.
(g)
An error made by the taxpayer in preparing the statement
of
assessable personal property under section 19.
(h)
An error made in the denial of a claim of exemption for
personal
property under section 9m, 9n, or 9o.
Sec. 53c. (1) If the March board of review denies a claim for
exemption under section 7u, the person claiming the exemption may
appeal that decision to the Michigan tax tribunal not later than
July 31.
(2) If the July or December board of review denies a claim for
exemption under section 7u, the person claiming the exemption may
appeal
that decision to the Michigan tax tribunal within 30 60 days
of the denial.
Sec. 53e. (1) If there has been a qualified error, the
qualified error shall be verified by the local assessing officer
and submitted to the state tax commission for approval. If
approved, the state tax commission 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. A correction under this
subsection may be made for the current year and the 3 immediately
preceding years.
(2) Action pursuant to subsection (1) may be initiated by the
taxpayer or the assessing officer. The taxpayer or assessing
officer may claim a qualified error under this section for any tax
year at any time.
(3) If a qualified error made in the denial of a claim of
exemption for personal property under section 9m, 9n, or 9o is
approved, the state tax commission 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 the state
tax commission does not approve a qualified error made in the
denial of a claim of exemption for personal property under section
9m, 9n, or 9o, the person claiming the exemption for that personal
property may appeal that decision to the Michigan tax tribunal as
provided in this section.
(4) The taxpayer or the assessing officer may appeal the
decision of the state tax commission under this section to the
Michigan tax tribunal within 60 days of that decision.
(5) 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) An error of measurement or calculation of the physical
dimensions or components of the real property being assessed.
(e) An error of omission or inclusion of a part of the real
property being assessed.
(f) An error regarding the correct taxable status of the real
property being assessed.
(g) An error made by the taxpayer in preparing the statement
of assessable personal property under section 19.
(h) An error made in the denial of a claim of exemption for
personal property under section 9m, 9n, or 9o.
Sec. 154. (1) If the state tax commission determines that
property subject to the collection of taxes under this act,
including property subject to taxation under 1974 PA 198, MCL
207.551 to 207.572, 1905 PA 282, MCL 207.1 to 207.21, 1953 PA 189,
MCL 211.181 to 211.182, and the commercial redevelopment act, 1978
PA 255, MCL 207.651 to 207.668, has been incorrectly reported or
omitted for any previous year, but not to exceed the current
assessment
year and 2 3 years immediately preceding the date the
incorrect reporting or omission was discovered and disclosed to the
state tax commission, the state tax commission shall place the
corrected assessment value for the appropriate years on the
appropriate assessment roll. The state tax commission shall issue
an order certifying to the treasurer of the local tax collecting
unit if the local tax collecting unit has possession of a tax roll
for a year for which an assessment change is made or the county
treasurer if the county has possession of a tax roll for a year for
which an assessment change is made the amount of taxes due as
computed by the correct annual rate of taxation for each year
except the current year. Taxes computed under this section shall
not be spread against the property for a period before the last
change of ownership of the property.
(2) If an assessment change made under this section results in
increased property taxes, the additional taxes shall be collected
by the treasurer of the local tax collecting unit if the local tax
collecting unit has possession of a tax roll for a year for which
an assessment change is made or by the county treasurer if the
county has possession of a tax roll for a year for which an
assessment change is made. Not later than 20 days after receiving
the order certifying the amount of taxes due under subsection (1),
the treasurer of the local tax collecting unit if the local tax
collecting unit has possession of a tax roll for a year for which
an assessment change is made or the county treasurer if the county
has possession of a tax roll for a year for which an assessment
change is made shall submit a corrected tax bill, itemized by
taxing jurisdiction, to each person identified in the order and to
the owner of the property on which the additional taxes are
assessed, if different than a person named in the order, by first-
class mail, address correction requested. Except for real property
subject to taxation under 1974 PA 198, MCL 207.551 to 207.572, 1905
PA 282, MCL 207.1 to 207.21, 1953 PA 189, MCL 211.181 to 211.182,
and the commercial redevelopment act, 1978 PA 255, MCL 207.651 to
207.668, and for real property only, if the additional taxes remain
unpaid on the March 1 in the year immediately succeeding the year
in which the state tax commission issued the order certifying the
additional taxes under subsection (1), the real property on which
the additional taxes are due shall be returned as delinquent to the
county treasurer. Real property returned for delinquent taxes under
this section, and upon which taxes, interest, penalties, and fees
remain unpaid after the property is returned as delinquent to the
county treasurer, is subject to forfeiture, foreclosure, and sale
for the enforcement and collection of the delinquent taxes as
provided in sections 78 to 79a.
(3) Except as otherwise provided in subsection (4), a
corrected tax bill based on an assessment roll corrected for
incorrectly reported or omitted personal property that is issued
after the effective date of the amendatory act that added this
subsection shall include penalty and interest at the rate of 1.25%
per month or fraction of a month from the date the taxes originally
could have been paid without interest or penalty. If the tax bill
has not been paid within 60 days after the corrected tax bill is
issued, interest shall again begin to accrue at the rate of 1.25%
per month or fraction of a month.
(4) If a person requests that an increased assessment due to
incorrectly reported or omitted personal property be added to the
assessment roll under this section before March 1, 2004 with
respect to statements filed or required to be filed under section
19 for taxes levied before January 1, 2004, and the corrected tax
bill issued under this subsection is paid within 30 days after the
corrected tax bill is issued, that person is not liable for any
penalty or interest on that portion of the additional tax
attributable to the increased assessment resulting from that
request. However, a person who pays a corrected tax bill issued
under this subsection more than 30 days after the corrected tax
bill is issued is liable for the penalties and interest imposed
under subsection (3).
(5) Except as otherwise provided in this section, the
treasurer of the local tax collecting unit or the county treasurer
shall disburse the payments of interest received to this state and
to a city, township, village, school district, county, and
authority, in the same proportion as required for the disbursement
of taxes collected under this act. The amount to be disbursed to a
local school district, except for that amount of interest
attributable to mills levied under section 1211(2) or 1211c of the
revised school code, 1976 PA 451, MCL 380.1211 and 380.1211c, and
mills that are not included as mills levied for school operating
purposes under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, shall be paid to the state treasury and credited
to the state school aid fund established by section 11 of article
IX of the state constitution of 1963. For an intermediate school
district receiving state aid under section 56, 62, or 81 of the
state school aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662,
and 388.1681, of the interest that would otherwise be disbursed to
or retained by the intermediate school district, all or a portion,
to be determined on the basis of the tax rates being utilized to
compute the amount of the state school aid, shall be paid instead
to the state treasury and credited to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
(6) If an assessment change made under this section results in
a decreased tax liability, a refund of excess tax payments shall be
made by the county treasurer and shall include interest at the rate
of 1% per month or fraction of a month for taxes levied before
January 1, 1997 and interest at the rate provided under section 37
of the tax tribunal act, 1973 PA 186, MCL 205.737, for taxes levied
after December 31, 1996, from the date of the payment of the tax to
the date of the payment of the refund. The county treasurer shall
charge a refund of excess tax payments under this subsection to the
various taxing jurisdictions in the same proportion as the taxes
levied.
(7) A person to whom property is assessed under this section
or the local tax collecting unit may appeal the state tax
commission's order to the Michigan tax tribunal within 60 days of
the date of the state tax commission's order under subsection (1).
An appeal of the state tax commission's order may include the
current assessment year and the 3 immediately preceding years, as
set forth in the state tax commission's order under subsection (1).
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.1039
of the 97th Legislature is enacted into law.