SB-0489, As Passed Senate, October 23, 2013

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 489

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 9o, 19, 21, 22, 30, and 53b (MCL 211.9o,

211.19, 211.21, 211.22, 211.30, and 211.53b), section 9o as added

by 2012 PA 402, section 19 as amended by 2002 PA 267, sections 21

and 22 as amended by 1996 PA 126, section 30 as amended by 2003 PA

194, and section 53b as amended by 2010 PA 24.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 9o. (1) Beginning December 31, 2013, eligible personal

property for which an exemption has been properly claimed under

this section is exempt from the collection of taxes under this act.

(2) An owner of eligible personal property shall claim the

exemption under this section by annually filing an affidavit with

the local tax collecting unit in which the eligible personal

property is located ~~and with the department of treasury~~ not later

than February 20 10 in each tax year. The affidavit shall be in a

form prescribed by the ~~department of treasury.~~ state tax commission

and shall include any address where any property owned by, leased

to, or in the possession of that owner or a related entity is

located within that local tax collecting unit. The affidavit shall

require the owner to attest that the combined ~~taxable~~ true cash

value of all industrial personal property and commercial personal

property in that local tax collecting unit owned by, ~~or under the~~

~~control~~ leased to, or in the possession of that owner or a related

entity on December 31 of the immediately preceding year is less

than ~~$40,000.00 in that local tax collecting unit.~~$80,000.00.

(3) If an affidavit claiming the exemption under this section

is filed as provided in subsection (2), the owner of that eligible

personal property is not required to also file a statement under

section 19 in that tax year.

(4) A person who claims an exemption for eligible personal

property under this section shall maintain books and records and

shall provide access to those books and records as provided in

section 22.

(5) If the assessor of the local tax collecting unit believes

that personal property for which an affidavit claiming an exemption

is filed under subsection (2) is not eligible personal property,

the assessor may deny that claim for exemption by notifying the

person that filed the affidavit in writing of the reason for the

denial and advising the person that the denial may be appealed to

the board of review under section 30 or 53b during that tax year.

The assessor may deny a claim for exemption for the current year

and for the 3 immediately preceding calendar years. If the assessor

denies a claim for exemption, the assessor shall remove the

exemption of that personal 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% 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% 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% 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.

(6) If a person fraudulently claims an exemption for personal

property under this section, that person is subject to the

penalties provided for in section 21(2).

(7) For 2014 only, if an owner of eligible personal property

did not timely file an affidavit to claim the exemption under this

section, that owner may file an appeal with the March 2014 board of

review to claim the exemption.

(8) ~~(4)~~ As used in this section:

(a) "Commercial personal property" means personal property

~~classified as commercial personal property under section 34c.~~that

is classified as commercial personal property under section 34c or

would be classified as commercial personal property under section

34c if not exempt from the collection of taxes under this act under

this section or section 9m or 9n.

(b) "Control", "controlled by", and "under common control

with" mean the possession of the power to direct or cause the

direction of the management and policies of a related entity,

directly or indirectly, whether derived from a management position,

official office, or corporate office held by an individual; by an

ownership interest, beneficial interest, or equitable interest; or

by contractual agreement or other similar arrangement. There is a

rebuttable presumption that control exists if any person, directly

or indirectly, owns, controls, or holds the power to vote, directly

or by proxy, 10% or more of the ownership interest of any other

person or has contributed more than 10% of the capital of the other

person. Indirect ownership includes ownership through attribution

or through 1 or more intermediary entities.

all of the following conditions:

(i) Is industrial personal property or commercial personal

property.

(ii) The combined ~~taxable~~ true cash value of all industrial

personal property and commercial personal property in that local

tax collecting unit owned by, leased to, or ~~under the control of~~

~~the owner~~ in the possession of the person claiming an exemption

under this section or a related entity on December 31 of the

immediately preceding year is less than ~~$40,000.00 in that local~~

~~tax collecting unit.~~$80,000.00.

(iii) Is not leased to or used by a person that previously owned

the property or a person that, directly or indirectly, controls, is

controlled by, or is under common control with the person that

previously owned the property.

(d) ~~(c)~~ "Industrial personal property" means personal property

~~classified as industrial personal property under section 34c.~~that

is classified as industrial personal property under section 34c or

would be classified as industrial personal property under section

34c if not exempt from the collection of taxes under this act under

this section or section 9m or 9n.

(e) "Person" means an individual, partnership, corporation,

association, limited liability company, or any other legal entity.

(f) "Related entity" means a person that, directly or

indirectly, controls, is controlled by, or is under common control

with the person claiming an exemption under this section.

Sec. 19. (1) A supervisor or other assessing officer, as soon

as possible after entering upon the duties of his or her office or

as required under the provisions of any charter that makes special

provisions for the assessment of property, shall ascertain the

taxable property in his or her assessing district, the person to

whom it should be assessed, and that person's residence.

(2) ~~The~~ Except as otherwise provided in section 9m, 9n, or 9o,

the supervisor or other assessing officer shall require any person

whom he or she believes has personal property in their possession

to make a statement of all the personal property of that person

whether owned by that person or held for the use of another ~~. The~~

~~statement shall~~ to be completed and delivered to the supervisor or

assessor on or before February 20 of each year. A notice the

supervisor or other assessing officer provides regarding that

statement shall also do all of the following:

(a) Notify the person to whom such notice is given of the

exemptions available under sections 9m, 9n, and 9o.

(b) Explain where information about those exemptions, the

forms and requirements for claiming those exemptions, and the forms

for the statement otherwise required under this section are

available.

year.

(3) If a supervisor, an assessing officer, a county tax or

equalization department provided for in section 34, or the state

tax commission considers it necessary to require from any person a

statement of real property assessable to that person, it shall

notify the person, and that person shall submit the statement.

(4) A local tax collecting unit may provide for the electronic

filing of the statement required under subsection (2) or (3).

(5) A statement under subsection (2) or (3) shall be in a form

prescribed by the state tax commission. If a local tax collecting

unit has provided for electronic filing of the statement under

subsection (4), the filing format shall be prescribed by the state

tax commission. The state tax commission shall not prescribe more

than 1 format for electronically filing a statement under

subsection (2) or more than 1 format for electronically filing a

statement under subsection (3).

(6) A statement under subsection (2) or (3) shall be signed

manually, by facsimile, or electronically. A supervisor or assessor

shall not require that a statement required under subsection (2) or

(3) be filed before February 20 of each year.

(7) A supervisor or assessor shall not accept a statement

under subsection (2) or (3) as final or sufficient if that

statement is not in the proper form or does not contain a manual,

facsimile, or electronic signature. A supervisor or assessor shall

preserve a statement that is not in the proper form or is not

signed as in other cases, and that statement may be used to make

the assessment and as evidence in any proceeding regarding the

assessment of the person furnishing that statement.

(8) An electronic or facsimile signature shall be accepted by

a local tax collecting unit using a procedure prescribed by the

state tax commission.

(9) A statement under subsection (2) for 2015 shall include a

schedule of when any personal property included in the statement

will become eligible for exemption under section 9m or 9n.

Sec. 21. (1) If a person, member of a firm, or officer of a

corporation willfully neglects or refuses to make out and deliver a

statement required under section 18 19 or falsely answers or

refuses to answer questions concerning his or her property or

property under his or her control as required by under this act,

that person is guilty of a misdemeanor , punishable by imprisonment

in the county jail for not less than 30 days or more than 6 months

, or by a fine of not less than $100.00 or more than $1,000.00, or

both. If a supervisor, assessing officer, or member of the state

tax commission is satisfied that a person is liable under this

~~section,~~ subsection, he or she shall report the case to the

prosecuting attorney of the county in which the property is

located.

(2) If a person fraudulently claims an exemption for personal

property under section 9m, 9n, or 9o, that person is guilty of a

misdemeanor punishable by imprisonment in the county jail for not

less than 30 days or more than 6 months or by a fine of not less

than $500.00 or more than $2,500.00, or both. If the assessor for

the local tax collecting unit is satisfied that a person is liable

under this subsection, he or she shall report the case to the

prosecuting attorney of the county in which the personal property

is located.

Sec. 22. (1) If a supervisor, assessing officer, member of the

state tax commission, or director or deputy director of the county

tax or equalization department is satisfied that a statement

required under section 18 19 is incorrect, or if a statement

required under section 18 19 cannot be obtained from the person,

firm, or corporation whose property is assessed, a supervisor,

assessing officer, member of the state tax commission, or director

or deputy director of the county tax or equalization department may

examine, under oath to be administered by the supervisor, assessing

officer, member of the state tax commission, or director or deputy

director of the county tax or equalization department, any person

he or she believes has knowledge of the amount or value of any

property owned, held, or controlled by the person neglecting,

refusing, or omitting to be examined or to furnish the statement

required under section ~~18.~~19.

(2) A person who files an affidavit claiming an exemption for

personal property under section 9o shall maintain adequate books

and records relating to the description; the date of purchase,

lease, or acquisition; and the purchase price, lease amount, or

value of all industrial personal property and commercial personal

property owned by, leased by, or in the possession of that person

or a related entity for 4 years after filing an affidavit claiming

the exemption. A person who files an affidavit claiming an

exemption for personal property under section 9o shall provide

access to the books and records relating to the description; the

date of purchase, lease, or acquisition; and the purchase price,

lease amount, or value of all industrial personal property and

commercial personal property owned by, leased by, or in the

possession of that person or a related entity if requested by the

assessor of the local tax collecting unit, county equalization

department, or department of treasury for 4 years immediately

succeeding the year in which that person files an affidavit

claiming the exemption.

(3) A person who files an affidavit claiming an exemption for

personal property under section 9m or 9n shall maintain adequate

books and records relating to the description; the date of

purchase, lease, or acquisition; and the purchase price, lease

amount, or value of that personal property; the customary

industrial use for that personal property; and the asset

classification grouping of that personal property as applied in

mass appraisal techniques for assessing purposes until that

personal property is no longer eligible for exemption under section

9m or 9n. A person who claims an exemption for personal property

under section 9m or 9n shall provide access to the books and

records relating to the description; the date of purchase, lease,

or acquisition; and the purchase price, lease amount, or value of

that personal property; the customary industrial use for that

personal property; and the asset classification grouping of that

personal property as applied in mass appraisal techniques for

assessing purposes if requested by the assessor of the local tax

collecting unit, county equalization department, or department of

treasury in any year in which that person claims an exemption for

that personal property under section 9m or 9n.

(4) The assessor of a local tax collecting unit shall preserve

all affidavits claiming an exemption for personal property filed

under sections 9m, 9n, and 9o for not less than 4 years after

completion of the assessment roll for which the affidavits are

filed.

(5) A supervisor or assessing officer is authorized to assess

to a person, firm, or corporation subject to assessment the amount

of real and personal property the supervisor or assessing officer

considers reasonable and just.

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, or adds property to the assessment roll, 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 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 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) ~~(5)~~ 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) ~~(6)~~ 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) ~~(7)~~ 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. 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 ~~(7),~~ (9), the board of review shall meet for the

purposes of this section on Tuesday following the second Monday in

December and ~~, for summer property taxes,~~ on Tuesday following the

third Monday in July. ~~Except as otherwise provided in subsection~~

~~(7), if there is not a levy of summer property taxes, the board of~~

~~review may meet for the purposes of this section 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 ~~subsection (6)~~

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 ~~this section~~ subsection (1) may be

initiated by the taxpayer or the assessing officer.

(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, ~~and~~ 7jj, 9m, 9n, and

9o. 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, or

7jj, 9m, 9n, or 9o 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). Except as otherwise provided in sections 7cc, 7ee,

~~and~~ 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 ~~grants~~ approves an exemption or provides a rebate for

property under section 7cc, 7ee, 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 7jj and shall

forward a copy of any section 7cc affidavits to the department of

treasury.

(4) If an exemption under section 7cc is ~~granted~~ approved by

the board of review under this section, the provisions of section

7cc apply. If an exemption under section 7cc is not ~~granted~~

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).

(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 ~~grants~~ 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,