SB-1185, As Passed Senate, November 10, 2004                                

SUBSTITUTE FOR

SENATE BILL NO. 1185

                                                                             A bill to amend 1893 PA 206, entitled                                             

"The general property tax act,"                                             

by amending section 154 (MCL 211.154), as amended by 2003 PA                

247.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 154.  (1) If the state tax commission determines that                  

2   property subject to the collection of taxes under this act,                 

3   including property subject to taxation under 1974 PA 198, MCL               

4   207.551 to 207.572, 1905 PA 282, MCL 207.1 to 207.21, 1953 PA               

5   189, MCL 211.181 to 211.182, and the commercial redevelopment               

6   act, 1978 PA 255, MCL 207.651 to 207.668, has been incorrectly              

7   reported or omitted for any of the previous  year, but not to               

8   exceed the current assessment year and 2 years immediately                  

9   preceding the date the incorrect reporting or omission was                  

10  discovered and disclosed to the state tax commission, the state             

1   tax commission shall place the corrected assessment value for the           

2   appropriate years on the appropriate assessment roll. years                

3   designated under this section, the state tax commission shall               

4   issue an order to the local tax collecting unit if the local tax            

5   collecting unit has possession of the tax roll being amended or             

6   to the county treasurer if the county treasurer has possession of           

7   the tax roll being amended requiring the revision of the assessed           

8   value and taxable value for each year for which the property was            

9   incorrectly reported or omitted.  The order of the state tax                

10  commission shall not exceed the current assessment year and the 2           

11  years immediately preceding the date a person liable for the                

12  incorrectly reported or omitted taxes notifies the state tax                

13  commission that the taxes were incorrectly reported or omitted.             

14  If the state tax commission is notified that taxes have been                

15  incorrectly reported or omitted by someone other than a person              

16  liable for the incorrectly reported or omitted taxes, the order             

17  shall not exceed the current assessment year and 2 years                    

18  immediately preceding the later of the date the incorrect                   

19  reporting or omission was discovered and disclosed to the state             

20  tax commission or the date written notice of the incorrect                  

21  reporting or omission was provided to the taxpayer.  The written            

22  notice provided shall be a copy of the petition alleging the                

23  incorrect reporting or omission sent to the taxpayer by ordinary            

24  mail at the taxpayer's last known address based on the records of           

25  the assessor for the local tax collecting unit. The state tax               

26  commission shall issue an order  certifying  to the treasurer of            

27  the local tax collecting unit if the local tax collecting unit              

1   has possession of a tax roll for a year for which an assessment             

2   change is made or the county treasurer if the county has                    

3   possession of a tax roll for a year for which an assessment                 

4   change is made requiring the revision of the assessed value and             

5   taxable value and certifying the amount of taxes due as computed            

6   by the correct annual rate of taxation for each year except the             

7   current year.  Taxes computed under this section shall not be               

8   spread against the property for a period before the last change             

9   of ownership of the property.                                               

10      (2) If an assessment change made under this section results                 

11  in increased property taxes, the additional taxes shall be                  

12  collected by the treasurer of the local tax collecting unit if              

13  the local tax collecting unit has possession of a tax roll for a            

14  year for which an assessment change is made or by the county                

15  treasurer if the county has possession of a tax roll for a year             

16  for which an assessment change is made.  Not later than 20 days             

17  after receiving the order certifying the amount of taxes due                

18  under subsection (1), the treasurer of the local tax collecting             

19  unit if the local tax collecting unit has possession of a tax               

20  roll for a year for which an assessment change is made or the               

21  county treasurer if the county has possession of a tax roll for a           

22  year for which an assessment change is made shall submit a                  

23  corrected tax bill, itemized by taxing jurisdiction, to each                

24  person identified in the order and to the owner of the property             

25  on which the additional taxes are assessed, if different than a             

26  person named in the order, by first-class mail, address                     

27  correction requested.  Except for real property subject to                  

1   taxation under 1974 PA 198, MCL 207.551 to 207.572, 1905 PA 282,            

2   MCL 207.1 to 207.21, 1953 PA 189, MCL 211.181 to 211.182, and the           

3   commercial redevelopment act, 1978 PA 255, MCL 207.651 to                   

4   207.668, and for real property only, if the additional taxes                

5   remain unpaid on the March 1 in the year immediately succeeding             

6   the year in which the state tax commission issued the order                 

7   certifying the additional taxes under subsection (1), the real              

8   property on which the additional taxes are due shall be returned            

9   as delinquent to the county treasurer.  Real property returned              

10  for delinquent taxes under this section, and upon which taxes,              

11  interest, penalties, and fees remain unpaid after the property is           

12  returned as delinquent to the county treasurer, is subject to               

13  forfeiture, foreclosure, and sale for the enforcement and                   

14  collection of the delinquent taxes as provided in sections 78 to            

15  79a.                                                                        

16      (3)  Except as otherwise provided in subsection (4), a                      

17  corrected tax bill based on an assessment roll corrected for                

18  incorrectly reported or omitted personal property that is issued            

19  after the effective date of the amendatory act that added this              

20  subsection shall include penalty and interest at the rate of                

21  1.25% per month or fraction of a month from the date the taxes              

22  originally could have been paid without interest or penalty. For           

23  assessments corrected by the state tax commission under this                

24  section as a result of a person's failure to file the statement             

25  required under section 19 for property that has not been                    

26  otherwise assessed, a corrected tax bill may include a penalty of           

27  1% per month of the resulting tax bill plus interest at the rate            

1   provided under section 37 of the tax tribunal act, 1973 PA 186,             

2   MCL 205.737, from the date the taxes originally could have been             

3   paid without interest. If the state tax commission determines               

4   that the failure to file the statement required under section 19            

5   was due to reasonable cause, the state tax commission shall waive           

6   the penalty. If the tax bill has not been paid within 60 days               

7   after the corrected tax bill is issued, interest shall again                

8   begin to accrue  at the rate of 1.25% per month or fraction of a            

9   month from the date the corrected tax bill is issued at the rate           

10  provided under section 37 of the tax tribunal act, 1973 PA 186,             

11  MCL 205.737.                                                                

12      (4)  If a person requests that an increased assessment due to               

13  incorrectly reported or omitted personal property be added to the           

14  assessment roll under this section before March 1, 2004 with                

15  respect to statements filed or required to be filed under section           

16  19 for taxes levied before January 1, 2004, and the corrected tax           

17  bill issued under this subsection is paid within 30 days after              

18  the corrected tax bill is issued, that person is not liable for             

19  any penalty or interest on that portion of the additional tax               

20  attributable to the increased assessment resulting from that                

21  request.  However, a person who pays a corrected tax bill issued            

22  under this subsection more than 30 days after the corrected tax             

23  bill is issued is liable for the penalties and interest imposed             

24  under subsection (3). For assessments corrected as a result of             

25  notification filed with the state tax commission after December             

26  29, 2003 and for which a person either did not request that an              

27  increased assessment due to incorrectly reported or omitted                 

1   personal property be added to the assessment roll under this                

2   section before March 1, 2004, or did not otherwise inform the               

3   state tax commission of an issue as to the person's reporting or            

4   omitting personal property prior to December 29, 2003, a                    

5   corrected personal property tax bill that is issued under this              

6   section due to reasons other than a person's failure to file the            

7   statement required under section 19 may include interest as                 

8   provided under section 37 of the tax tribunal act, 1973 PA 186,             

9   MCL 205.737, calculated from the date the taxes originally could            

10  have been paid without interest or penalty and a penalty of 1%              

11  per month on the corrected portion of the assessment only, not to           

12  exceed 18% of the total tax due.  If the state tax commission               

13  determines that the incorrect reporting or omission was the                 

14  result of reasonable cause, the state tax commission shall waive            

15  the penalty.  In no case shall interest and penalty be imposed on           

16  any assessment subject to a notification pending before the state           

17  tax commission as of December 29, 2003.  If the corrected tax               

18  bill has not been paid within 60 days after the corrected tax               

19  bill is issued, all of the following shall again begin to accrue            

20  from the date the corrected tax bill is issued:                             

21      (a) Interest at the rate provided under section 37 of the tax               

22  tribunal act, 1973 PA 186, MCL 205.737.                                     

23      (b) A penalty at the rate of 1% per month.

24      (5) Except as otherwise provided in this section, the                       

25  treasurer of the local tax collecting unit or the county                    

26  treasurer shall disburse the payments of interest and penalty

27  received to this state and to a city, township, village, school             

1   district, county, and authority, in the same proportion as                  

2   required for the disbursement of taxes collected under this act.            

3   The amount to be disbursed to a local school district, except for           

4   that amount of interest attributable to mills levied under                  

5   section 1211(2)  or 1211c  of the revised school code, 1976 PA              

6   451, MCL 380.1211,  and 380.1211c,  and mills that are not                  

7   included as mills levied for school operating purposes under                

8   section 1211 of the revised school code, 1976 PA 451, MCL                   

9   380.1211, shall be paid to the state treasury and credited to the           

10  state school aid fund established by section 11 of article IX of            

11  the state constitution of 1963.  For an intermediate school                 

12  district receiving state aid under section 56, 62, or 81 of the             

13  state school aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662,           

14  and 388.1681, of the interest that would otherwise be disbursed             

15  to or retained by the intermediate school district, all or a                

16  portion, to be determined on the basis of the tax rates being               

17  utilized to compute the amount of the state school aid, shall be            

18  paid instead to the state treasury and credited to the state                

19  school aid fund established by section 11 of article IX of the              

20  state constitution of 1963.                                                 

21      (6) If an assessment change made under this section results                 

22  in a decreased tax liability, a refund of excess tax payments               

23  shall be made by the county treasurer and shall include interest            

24  at the rate of 1% per month or fraction of a month for taxes                

25  levied before January 1, 1997 and interest at the rate provided             

26  under section 37 of the tax tribunal act, 1973 PA 186, MCL                  

27  205.737, for taxes levied after December 31, 1996, from the date            

1   of the payment of the tax to the date of the payment of the                 

2   refund.  The county treasurer shall charge a refund of excess tax           

3   payments under this subsection to the various taxing                        

4   jurisdictions in the same proportion as the taxes levied.                   

5       (7) A person to whom property is assessed under this section                

6   may appeal the state tax commission's order to the Michigan tax             

7   tribunal.                                                                   

8   (8) Failure to file the statement required under section 19                 

9   by the date required shall not prohibit a person from seeking               

10  relief under this section if that person files the statement                

11  required under section 19 prior to the first meeting of the board           

12  of review.

13      Enacting section 1.  This amendatory act is retroactive and                 

14  is effective December 29, 2003.