COMPUTERIZED ASSESSMENT ROLLS                                                     H.B. 4888 (H-2):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4888 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Holly Hughes

House Committee:  Local Government

Senate Committee:  Local Government

CONTENT

The bill would amend the General Property Tax Act to allow a local tax collecting unit to use a computerized database as the assessment roll required under the Act.

The Act requires each assessor, by the first Monday in March every year, to make and complete an assessment roll that contains information specified in the Act. The bill would allow a local tax collecting unit to use a computerized database system as the assessment roll, if the local unit and the assessor certified in a form and manner prescribed by the State Tax Commission that the proposed system had the capacity to enable the local unit to comply, and it did comply, with the following requirements:

-- The assessor would have to maintain a computerized assessment roll in a format compatible with the local unit's computer system.

-- The affidavit attached to or included with the assessment roll would have to include documentation that the roll had been backed up.

-- The local unit would have to certify and maintain a retention policy that complied with certain requirements of law pertaining to public records.

-- The local unit would have to certify that the computerized roll had sufficient security procedures to assure the system's integrity.

The bill also would prescribe procedures for the State Tax Commission to notify a local unit that it was not in compliance with these requirements.

MCL 211.24                                                            Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would tend to reduce the costs of a local taxing unit that used a computerized database that met the requirements of the bill for the assessment roll. Current law allows a local tax collecting unit to use a computerized database for the tax roll and the final settlement tax roll if certain conditions are met. The bill would extend similar provisions to the use of a computerized assessment roll with sufficient security, a backup system, and a records retention policy, upon certification by the local taxing unit and the assessor to the State Tax Commission. This would reduce printing and storage costs for local taxing units. The State Tax Commission would incur additional costs of a minimal amount to develop and receive certification forms.

Date Completed:  2-10-16                                                  Fiscal Analyst:  Elizabeth Pratt

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.