September 10, 2014, Introduced by Senator CASWELL and referred to the Committee on Finance.
A bill to amend 1973 PA 186, entitled
"Tax tribunal act,"
by amending sections 21, 22, 32, 35a, 36, 49, and 62 (MCL 205.721,
205.722, 205.732, 205.735a, 205.736, 205.749, and 205.762), section
22 as amended by 2008 PA 127, sections 32 and 35a as amended by
2008 PA 125, section 49 as amended by 2008 PA 126, and section 62
as amended by 2008 PA 128.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 21. (1) The tax tribunal is created and is a quasi-
judicial agency which, for administrative purposes only, is in the
department
of treasury. licensing and
regulatory affairs.
(2) The tribunal consists of 7 members appointed by the
governor, with the advice and consent of the senate, for terms of 4
years.
The 2 additional members first appointed by this amendatory
act
shall first serve for 3 years.
(3) A member appointed by a governor is subject to removal
during his or her term by that same governor for cause after notice
and hearing.
(4) A member appointed by a governor not currently in office
is subject to removal during his or her term as provided in section
10 of article V of the state constitution of 1963.
(5) A member may be reappointed and a vacancy shall be filled
for an unexpired term in the same manner as the appointment is made
for a full term.
(6) Members shall undergo annual training on proper courtroom
procedure.
Sec. 22. (1) The members of the tribunal shall be citizens of
the
United States and residents of this state. At least 2 All
members shall be attorneys admitted to practice in this state who
have been engaged for at least 5 years immediately preceding the
appointment in active government, corporate, or private practice
dealing with federal and state or local tax matters, including
property taxes, or in the discharge of a judicial or quasi-judicial
office.
At least 1 member shall be a certified assessor holding the
highest
level of certification granted by the state assessors
board.
At least 1 member shall be a professional real estate
appraiser
holding a recognized certification indicating competence
in
the valuation of complex income producing and residential
property
of the type subject to property taxation, with a
certification
having required a review of sample appraisals and 5
years
of experience as an appraiser. At least 1 member shall be a
certified
public accountant with 5 years of experience in state or
local
tax matters. Appointees who are not attorneys, certified
assessors,
professional real estate appraisers, or certified public
accountants
shall have at least 5 years of experience in state or
local
tax matters.
(2) Each member shall take and subscribe to the constitutional
oath of office before entering on the discharge of his or her
duties.
(3) Each member shall devote his or her entire time to, and
personally perform the duties of, his or her office and shall not
engage in other business or professional activity for remuneration.
(4) Each member shall receive an annual salary as determined
by law and shall be reimbursed for his or her actual and necessary
expenses at the rate determined by the administrative board.
Sec. 32. The tribunal's powers include, but are not limited
to, all of the following:
(a) Affirming, reversing, modifying, or remanding a final
decision, finding, ruling, determination, or order of an agency.
(b) Ordering the payment or refund of taxes in a matter over
which it may acquire jurisdiction.
(c) Granting other relief or issuing writs, orders, or
directives that it deems necessary or appropriate in the process of
disposition of a matter over which it may acquire jurisdiction.
(d) Promulgating rules for the implementation of this act,
including rules for practice and procedure before the tribunal and
for mediation as provided in section 47, under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(e) Mediating a proceeding before the tribunal.
(f) Certifying mediators to facilitate claims in the court of
claims and in the tribunal.
(g) Contracting with assessors if no members of the tribunal
are assessors.
Sec. 35a. (1) The provisions of this section apply to a
proceeding before the tribunal that is commenced after December 31,
2006.
(2) A proceeding before the tribunal is original and
independent and is considered de novo.
(3) Except as otherwise provided in this section or by law,
for an assessment dispute as to the valuation or exemption of
property, the assessment must be protested before the board of
review before the tribunal acquires jurisdiction of the dispute
under
subsection (6).(10). For a
dispute as to the classification
of property under section 34c of the general property tax act, 1893
PA 206, MCL 211.34c, the classification must be protested before
the board of review and the state tax commission as provided in
section 34c of the general property tax act, 1893 PA 206, MCL
211.34c, before the tribunal acquires jurisdiction of the dispute
under subsection (11).
(4) In the 2007 tax year and each tax year after 2007, all of
the following apply:
(a) For an assessment dispute as to the valuation or exemption
of property classified under section 34c of the general property
tax act, 1893 PA 206, MCL 211.34c, as commercial real property,
industrial real property, or developmental real property, the
assessment may be protested before the board of review or appealed
directly to the tribunal without protest before the board of review
as
provided in subsection (6).(10).
(b) For an assessment dispute as to the valuation or exemption
of property classified under section 34c of the general property
tax act, 1893 PA 206, MCL 211.34c, as commercial personal property,
industrial personal property, or utility personal property, the
assessment may be protested before the board of review or appealed
directly to the tribunal without protest before the board of review
as
provided in subsection (6), (10),
if a statement of assessable
property is filed under section 19 of the general property tax act,
1893 PA 206, MCL 211.19, prior to the commencement of the board of
review for the tax year involved.
(c) For an assessment dispute as to the valuation of property
that is subject to taxation under 1974 PA 198, MCL 207.551 to
207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651
to 207.668, the enterprise zone act, 1985 PA 224, MCL 125.2101 to
125.2123, the technology park development act, 1984 PA 385, MCL
207.701 to 207.718, the obsolete property rehabilitation act, 2000
PA 146, MCL 125.2781 to 125.2797, the commercial rehabilitation
act, 2005 PA 210, MCL 207.841 to 207.856, or 1953 PA 189, MCL
211.181 to 211.182, the assessment may be protested before the
board of review or appealed directly to the tribunal without
protest
before the board of review as provided in subsection (6).
(10). This subdivision does not apply to property that is subject
to the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771
to 207.786.
(5)
For a A dispute regarding a determination of a claim of
exemption of a principal residence or qualified agricultural
property
for a year in which the July or December board of review
has
authority to determine a claim of exemption for a principal
residence
or qualified agricultural property, the claim of
exemption
shall be presented to either the July or December board
of
review before the tribunal acquires jurisdiction of the dispute.
shall be appealed directly to the tribunal without protest before
the board of review. For a special assessment dispute, the special
assessment shall be protested at the hearing held for the purpose
of confirming the special assessment roll before the tribunal
acquires jurisdiction of the dispute.
(6) For a dispute regarding a determination of a claim of
exemption of a principal residence by reason of poverty under
section 7u of the general property tax act, 1893 PA 206, MCL
211.7u, the claim of exemption shall be presented to the March,
July, or December board of review before the tribunal acquires
jurisdiction of the dispute.
(7) For a dispute regarding a determination of a claim of
exemption of the homestead of a disabled veteran or the unremarried
surviving spouse of a disabled veteran under section 7b of the
general property tax act, 1893 PA 206, MCL 211.7b, the claim of
exemption shall be presented to the March, July, or December board
of review before the tribunal acquires jurisdiction of the dispute.
(8) For a dispute regarding a determination of a claim of a
qualified error under section 53e of the general property tax act,
1893 PA 206, MCL 211.53e, the claim of exemption shall be presented
to the state tax commission before the tribunal acquires
jurisdiction of the dispute.
(9) For a dispute regarding a determination of a claim of
exemption of qualified agricultural property under section 7ee of
the general property tax act, 1893 PA 206, MCL 211.7ee, the claim
of exemption shall be appealed directly to the tribunal without
protest before the board of review.
(10) (6)
The jurisdiction of the tribunal in
an assessment
dispute as to property classified under section 34c of the general
property tax act, 1893 PA 206, MCL 211.34c, as commercial real
property, industrial real property, developmental real property,
commercial personal property, industrial personal property, or
utility personal property is invoked by a party in interest, as
petitioner,
filing a written petition on or before May July 31
of
the tax year involved. The jurisdiction of the tribunal in an
assessment dispute as to property classified under section 34c of
the general property tax act, 1893 PA 206, MCL 211.34c, as
agricultural real property, residential real property, timber-
cutover real property, or agricultural personal property is invoked
by a party in interest, as petitioner, filing a written petition on
or before July 31 of the tax year involved. The jurisdiction of the
tribunal in an assessment dispute as to property subject to an
order issued by the state tax commission under section 154(1) of
the general property tax act, 1893 PA 206, MCL 211.154, is invoked
by a party in interest, as petitioner, filing a written petition
within 60 days after that order is issued. In all other matters,
except as otherwise provided in this section, the jurisdiction of
the tribunal is invoked by a party in interest, as petitioner,
filing a written petition within 35 days after the final decision,
ruling, or determination. The jurisdiction of the tribunal in a
dispute regarding a determination of a claim of exemption of a
principal residence by reason of poverty under section 7u of the
general property tax act, 1893 PA 206, MCL 211.7u, is invoked by
the person claiming the exemption, as petitioner, filing a written
petition by July 31 if the claim of exemption was denied by the
March board of review or within 60 days after the July or December
board of review denied the claim for exemption. The jurisdiction of
the tribunal in a dispute regarding a determination of a claim of
exemption of a principal residence of the homestead of a disabled
veteran or the unremarried surviving spouse of a disabled veteran
under section 7b of the general property tax act, 1893 PA 206, MCL
211.7b, is invoked by the person claiming the exemption, as
petitioner, filing a written petition by July 31 if the claim of
exemption was denied by the March board of review or within 60 days
after the July or December board of review denied the claim for
exemption. The jurisdiction of the tribunal in a dispute regarding
a determination of a claim of a qualified error under section 53e
of the general property tax act, 1893 PA 206, MCL 211.53e, is
invoked by the taxpayer or assessing officer filing a written
petition within 60 days after the decision of the state tax
commission. The jurisdiction of the tribunal in a dispute regarding
a determination of a claim of exemption of qualified agricultural
property under section 7ee of the general property tax act, 1893 PA
206, MCL 211.7ee, is invoked by the person claiming the exemption,
as petitioner, filing a written petition within 60 days of the
denial or modification of the exemption. An appeal of a contested
tax bill shall be made within 60 days after mailing by the
assessment district treasurer and the appeal is limited solely to
correcting arithmetic errors or mistakes and is not a basis of
appeal as to disputes of valuation of the property, the property's
exempt status, or the property's equalized value resulting from
equalization of its assessment by the county board of commissioners
or the state tax commission. Service of the petition on the
respondent shall be by certified mail. For an assessment dispute,
service of the petition shall be mailed to the assessor of that
local tax collecting unit if the respondent is the local tax
collecting unit. Except for petitions filed under chapter 6, a copy
of the petition shall also be sent to the secretary of the school
board in the local school district in which the property is located
and to the clerk of any county that may be affected.
(11) The jurisdiction of the tribunal in a dispute as to the
classification of property under section 34c of the general
property tax act, 1893 PA 206, MCL 211.34c, is invoked by an owner
or an assessor, as petitioner, filing a written petition within the
time frame prescribed in section 34c of the general property tax
act, 1893 PA 206, MCL 211.34c. An appeal as to the classification
of property under section 34c of the general property tax act, 1893
PA 206, MCL 211.34c, may include the year in which the petition is
filed and the 3 immediately preceding years. Service of the
petition on the respondent shall be by certified mail. Service of
the petition shall be mailed to the assessor of that local tax
collecting unit if the respondent is the local tax collecting unit.
A copy of the petition shall also be sent to the secretary of the
school board in the local school district in which the property is
located, to the clerk of any county that may be affected, and to
the state treasurer.
(12) (7)
A petition is considered filed on
or before the
expiration of the time period provided in this section or by law if
1 or more of the following occur:
(a) The petition is postmarked by the United States postal
service on or before the expiration of that time period.
(b) The petition is delivered in person on or before the
expiration of that time period.
(c) The petition is given to a designated delivery service for
delivery on or before the expiration of that time period and the
petition is delivered by that designated delivery service or, if
the petition is not delivered by that designated delivery service,
the petitioner establishes that the petition was given to that
designated delivery service for delivery on or before the
expiration of that time period.
(13) (8)
A petition required to be filed by
a day during which
the offices of the tribunal are not open for business shall be
filed by the next business day.
(14) (9)
A petition or answer may be amended
at any time by
leave of the tribunal and in compliance with its rules. If a tax
was paid while the determination of the right to the tax is pending
before the tribunal, the taxpayer may amend his or her petition to
seek a refund of that tax.
(15) (10)
A person or legal entity may appear
before the
tribunal in his or her own behalf or may be represented by an
attorney or by any other person.
(16) (11)
As used in this section,
"designated delivery
service" means a delivery service provided by a trade or business
that is designated by the tribunal for purposes of this subsection.
The tribunal shall issue a tribunal notice not later than December
31 in each calendar year designating not less than 1 delivery
service for the immediately succeeding calendar year. The tribunal
may designate a delivery service only if the tribunal determines
that the delivery service meets all of the following requirements:
(a) Is available to the general public.
(b) Is at least as timely and reliable on a regular basis as
the United States postal service.
(c) Records electronically to a database kept in the regular
course of business or marks on the petition the date on which the
petition was given to the delivery service for delivery.
(d) Any other requirement the tribunal prescribes.
Sec.
36. (1) Tribunal, The
tribunal, upon written request of a
party
to a proceeding, shall may
issue subpoenas forthwith
requiring the attendance and testimony of witnesses and the
production of evidence, including, but not limited to, books,
records, correspondence, and documents in their possession or under
their control. On written request, the tribunal shall revoke a
subpoena
if the testimony to be provided
and the evidence ,
the
production
of which is required, does to
be produced do not relate
to
a matter in issue , or if the subpoena does not describe with
sufficient
particularity the evidence, the production of which is
required,
or if for any other reason
sufficient in law. the
subpoena
is invalid. In case of refusal to
comply with a subpoena,
the party on whose behalf it was issued may file a petition, in the
circuit court for Ingham county or for the county in which the
proceeding is held, for an order requiring compliance.
(2) When directed by the chairman, a state or local
governmental unit or agency shall make available books, records,
documents, information, and assistance to the tribunal.
Sec. 49. (1) The tribunal by rule shall prescribe filing fees
and other fees to be paid in connection with a proceeding before
the tribunal. The fees shall be paid to the clerk of the tribunal
and by order of the tribunal may be taxed as costs.
(2) The residential property and small claims division of the
tribunal
shall not charge fees or costs on appeals for any of the
following:
(a) Appeals relating to the valuation of principal residence
property as defined in rules promulgated by the tax tribunal.
(b) Appeal relating to a claim for exemption by reason of
poverty under section 7u of the general property tax act, 1893 PA
206, MCL 211.7u.
(3) The Michigan tax tribunal fund is created in the
department
of labor and economic growth licensing
and regulatory
affairs as a separate interest bearing fund. All fees collected
pursuant to this act shall be deposited in the Michigan tax
tribunal fund. The state treasurer shall direct the investment of
the Michigan tax tribunal fund. Money in the Michigan tax tribunal
fund shall remain in the Michigan tax tribunal fund at the close of
the fiscal year and shall not revert to the general fund. Money in
the Michigan tax tribunal fund shall be used solely for operation
of the tribunal.
Sec. 62. (1) The residential property and small claims
division created in section 61 has jurisdiction over a proceeding,
otherwise cognizable by the tribunal, in which residential property
is exclusively involved. Property other than residential property
may be included in a proceeding before the residential property and
small claims division if the amount of that property's taxable
value or state equalized valuation in dispute is not more than
$100,000.00.
$150,000.00, adjusted
annually by the inflation rate.
The residential property and small claims division also has
jurisdiction over a proceeding involving an appeal of any other tax
over which the tribunal has jurisdiction if the amount of the tax
in
dispute is $20,000.00 $75,000.00
or less, adjusted annually by
the inflation rate. As used in this subsection, "inflation rate"
means the ratio of the general price level for the state fiscal
year ending in the calendar year immediately preceding the current
year divided by the general price level for the state fiscal year
ending in the calendar year before the year immediately preceding
the current year.
(2) A person or legal entity entitled to proceed under section
31, and whose proceeding meets the jurisdictional requirements of
subsection (1), may elect to proceed before either the residential
property and small claims division or the entire tribunal. A formal
record of residential property and small claims division
proceedings is not required. Within 20 days after a hearing officer
or referee issues a proposed order, a party may file exceptions to
the proposed order. The tribunal shall review the exceptions to
determine if the proposed order shall be adopted as a final order.
Upon a showing of good cause or at the tribunal's discretion, the
tribunal may modify the proposed order and issue a final order or
hold a rehearing by a tribunal member. A rehearing is not limited
to the evidence presented before the hearing officer or referee.
(3) Except as otherwise provided in this subsection, the
residential property and small claims division shall meet in the
county in which the property in question is located or in a county
contiguous to the county in which the property in question is
located. A petitioner-appellant shall not be required to travel
more than 100 miles from the location of the property in question
to the hearing site, except that a rehearing by a tribunal member
shall be at a site determined by the tribunal. By leave of the
tribunal and with the mutual consent of all parties, a residential
property and small claims division proceeding may take place at a
location mutually agreed upon by all parties or may take place by
the use of amplified telephonic or video conferencing equipment.
(4) The tribunal shall make a short form for the simplified
filing of residential property and small claims appeals.
(5) In a proceeding before the residential property and small
claims division for property other than residential property, if
the amount of taxable value or state equalized valuation in dispute
is greater than $20,000.00, or in nonproperty matters if the amount
in dispute is greater than $1,000.00, the filing fee is the amount
that would have been paid if the proceeding was brought before the
entire tribunal and not the residential property and small claims
division.
(6) As used in this chapter, "residential property" means any
of the following:
(a) Real property exempt under section 7cc of the general
property tax act, 1893 PA 206, MCL 211.7cc.
(b) Real property classified as residential real property
under section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
(c) Real property with less than 4 rental units.
(d) Real property classified as agricultural real property
under section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
(e) Real property exempt under section 7ee of the general
property tax act, 1893 PA 206, MCL 211.7ee.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.1038
of the 97th Legislature is enacted into law.