HB-5168, As Passed Senate, December 17, 2003
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5168
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7cc, 7ee, 24c, and 154 (MCL 211.7cc,
211.7ee, 211.24c, and 211.154), sections 7cc and 24c as amended
by 2003 PA 140, section 7ee as amended by 2003 PA 105, and
section 154 as amended by 2000 PA 281.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7cc. (1) A principal residence is exempt from the tax
2 levied by a local school district for school operating purposes
3 to the extent provided under section 1211 of the revised school
4 code, 1976 PA 451, MCL 380.1211, if an owner of that principal
5 residence claims an exemption as provided in this section.
6 Notwithstanding the tax
day provided in section 2, for taxes
7 levied before January 1, 2004, the status of property as
a
8 principal residence shall be determined on the date an affidavit
1 claiming an exemption is
filed under subsection (2). For taxes
2 levied after December 31, 2003, the status of property as a
3 principal residence
shall be determined on the tax day provided
4 in section 2.
5 (2) An owner of property may claim an exemption under this
6 section by filing an affidavit
on or before May 1 for taxes
7 levied before January 1, 2004 and the tax day as provided in
8 section 2 for taxes
levied after December 31, 2003 with the
9 local tax collecting unit in which the property is located. The
10 affidavit shall state that the property is owned and occupied as
11 a principal residence by that owner of the property on the date
12 that the affidavit is signed. The affidavit shall be on a form
13 prescribed by the department of treasury. One copy of the
14 affidavit shall be retained by the owner, 1 copy shall be
15 retained by the local tax collecting unit until any appeal or
16 audit period under this act has expired, and 1 copy shall be
17 forwarded to the department of treasury pursuant to subsection
18 (4), together with all information submitted under subsection
19 (27) (26) for a cooperative housing corporation.
The affidavit
20 shall require the owner claiming the exemption to indicate if
21 that owner or that owner's spouse has claimed another exemption
22 on property in this state that is not rescinded or a
23 substantially similar exemption, deduction, or credit on property
24 in another state that is not rescinded. If the affidavit
25 requires an owner to include a social security number, that
26 owner's number is subject to the disclosure restrictions in 1941
27 PA 122, MCL 205.1 to 205.31. If an owner of property filed an
1 affidavit for an exemption under this section before January 1,
2 2004, that affidavit shall be considered the affidavit required
3 under this subsection for a principal residence exemption and
4 that exemption shall remain in effect until rescinded as provided
5 in this section.
6 (3) A husband and wife who are required to file or who do
7 file a joint Michigan income tax return are entitled to not more
8 than 1 exemption under
this section. A For taxes levied after
9 December 31, 2002, a person is not entitled to an exemption under
10 this section if any of the following conditions occur:
11 (a) That person has claimed a substantially similar
12 exemption, deduction, or credit on property in another state that
13 is not rescinded.
14 (b) Subject to subdivision (a), that person or his or her
15 spouse owns property in a state other than this state for which
16 that person or his or her spouse claims an exemption, deduction,
17 or credit substantially similar to the exemption provided under
18 this section, unless that person and his or her spouse file
19 separate income tax returns.
20 (c) That person has filed a nonresident Michigan income tax
21 return, except active duty military personnel stationed in this
22 state with his or her principal residence in this state.
23 (d) That person has filed an income tax return in a state
24 other than this state as a resident, except active duty military
25 personnel stationed in this state with his or her principal
26 residence in this state.
27 (e) That person has previously rescinded an exemption under
1 this section for the same property for which an exemption is now
2 claimed and there has not been a transfer of ownership of that
3 property after the previous exemption was rescinded, if either of
4 the following conditions is satisfied:
5 (i) That person has claimed an exemption under this section
6 for any other property for that tax year.
7 (ii) That person has rescinded an exemption under this
8 section on other property, which exemption remains in effect for
9 that tax year, and there has not been a transfer of ownership of
10 that property.
11 (4) Upon receipt of an affidavit filed under subsection (2)
12 and unless the claim is denied under this section, the assessor
13 shall exempt the property from the collection of the tax levied
14 by a local school district for school operating purposes to the
15 extent provided under section 1211 of the revised school code,
16 1976 PA 451, MCL 380.1211, as provided in subsection (1) until
17 December 31 of the year in which the property is transferred or
18 is no longer a principal residence as defined in section 7dd.
19 The local tax collecting unit shall forward copies of affidavits
20 to the department of treasury according to a schedule prescribed
21 by the department of treasury.
22 (5) Not more than 90 days after exempted property is no
23 longer used as a principal residence by the owner claiming an
24 exemption, that owner shall rescind the claim of exemption by
25 filing with the local tax collecting unit a rescission form
26 prescribed by the department of treasury. An owner who fails to
27 file a rescission as required by this subsection is subject to a
1 penalty of $5.00 per day for each separate failure beginning
2 after the 90 days have elapsed, up to a maximum of $200.00. This
3 penalty shall be collected under 1941 PA 122, MCL 205.1 to
4 205.31, and shall be deposited in the state school aid fund
5 established in section 11 of article IX of the state constitution
6 of 1963. This penalty may be waived by the department of
7 treasury.
8 (6) If the assessor of the local tax collecting unit believes
9 that the property for which an exemption is claimed is not the
10 principal residence of the owner claiming the exemption, the
11 assessor may deny a new or existing claim by notifying the owner
12 and the department of treasury in writing of the reason for the
13 denial and advising the owner that the denial may be appealed to
14 the residential and small claims division of the Michigan tax
15 tribunal within 35 days after the date of the notice. The
16 assessor may deny a claim for exemption for the current year and
17 for the 3 immediately preceding calendar years. If the assessor
18 denies an existing claim for exemption, the assessor shall remove
19 the exemption of the property and, if the tax roll is in the
20 local tax collecting unit's possession, amend the tax roll to
21 reflect the denial and the local treasurer shall within 30 days
22 of the date of the denial issue a corrected tax bill for
23 previously unpaid any additional taxes with interest at the
24 rate of 1.25% per month or fraction of a month and penalties
25 computed from the date the taxes were last payable without
26 interest or penalty. If the tax roll is in the county
27 treasurer's possession, the tax roll shall be amended to reflect
1 the denial and the county treasurer shall within 30 days of the
2 date of the denial prepare and submit a supplemental tax bill for
3 any additional taxes, together with interest at the rate of 1.25%
4 per month or fraction of a month and penalties computed from the
5 date the taxes were last payable without interest or penalty.
6 Additional interest Interest on any tax set forth in a
7 corrected or supplemental tax bill shall again begin to accrue 60
8 days after the date the corrected or supplemental tax bill is
9 issued at the rate of 1.25% per month or fraction of a month.
10 Taxes levied in a corrected or supplemental tax bill shall be
11 returned as delinquent on the March 1 in the year immediately
12 succeeding the year in which the corrected or supplemental tax
13 bill is issued. If the assessor denies an existing claim for
14 exemption, the interest due shall be distributed as provided in
15 subsection (24) (23).
However, if the property has been
16 transferred to a bona fide purchaser before additional taxes were
17 billed to the seller as a result of the denial of a claim for
18 exemption, the taxes, interest, and penalties shall not be a lien
19 on the property and shall not be billed to the bona fide
20 purchaser, and the local tax collecting unit if the local tax
21 collecting unit has possession of the tax roll or the county
22 treasurer if the county has possession of the tax roll shall
23 notify the department of treasury of the amount of tax due,
24 interest, and penalties through the date of that notification.
25 The department of treasury shall then assess the owner who
26 claimed the exemption under this section for the tax, interest,
27 and penalties accruing as a result of the denial of the claim for
1 exemption, if any, as for unpaid taxes provided under 1941 PA
2 122, MCL 205.1 to 205.31, and shall deposit any tax or penalty
3 collected into the state school aid fund and shall distribute any
4 interest collected as
provided in subsection (24) (23). The
5 denial shall be made on a form prescribed by the department of
6 treasury. If the property for which the assessor has denied a
7 claim for exemption under this subsection is located in a county
8 in which the county treasurer or the county equalization director
9 have elected to audit exemptions under subsection (10), the
10 assessor shall notify the county treasurer or the county
11 equalization director of the denial under this subsection.
12 (7) If the assessor of the local tax collecting unit believes
13 that the property for which the exemption is claimed is not the
14 principal residence of the owner claiming the exemption and has
15 not denied the claim, the assessor shall include a recommendation
16 for denial with any affidavit that is forwarded to the department
17 of treasury or, for an existing claim, shall send a
18 recommendation for denial to the department of treasury, stating
19 the reasons for the recommendation.
20 (8) The department of treasury shall determine if the
21 property is the principal residence of the owner claiming the
22 exemption. The department of treasury may review the validity of
23 exemptions for the current calendar year and for the 3
24 immediately preceding calendar years. If the department of
25 treasury determines that the property is not the principal
26 residence of the owner claiming the exemption, the department
27 shall send a notice of that determination to the local tax
1 collecting unit and to the owner of the property claiming the
2 exemption, indicating that the claim for exemption is denied,
3 stating the reason for the denial, and advising the owner
4 claiming the exemption of the right to appeal the determination
5 to the department of treasury and what those rights of appeal
6 are. The department of treasury may issue a notice denying a
7 claim if an owner fails to respond within 30 days of receipt of a
8 request for information from that department. An owner may
9 appeal the denial of a claim of exemption to the department of
10 treasury within 35 days of receipt of the notice of denial. An
11 appeal to the department of treasury shall be conducted according
12 to the provisions for an informal conference in section 21 of
13 1941 PA 122, MCL 205.21. Within 10 days after acknowledging an
14 appeal of a denial of a claim of exemption, the department of
15 treasury shall notify the assessor and the treasurer for the
16 county in which the property is located that an appeal has been
17 filed. Upon receipt of a notice that the department of treasury
18 has denied a claim for exemption, the assessor shall remove the
19 exemption of the property and, if the tax roll is in the local
20 tax collecting unit's possession, amend the tax roll to reflect
21 the denial and the local treasurer shall within 30 days of the
22 date of the denial issue
a corrected tax bill for previously
23 unpaid any additional taxes with interest at the rate
of 1.25%
24 per month or fraction of a month and penalties computed from the
25 date the taxes were last payable without interest and penalty.
26 If the tax roll is in the county treasurer's possession, the tax
27 roll shall be amended to reflect the denial and the county
1 treasurer shall within 30 days of the date of the denial prepare
2 and submit a supplemental tax bill for any additional taxes,
3 together with interest at the rate of 1.25% per month or fraction
4 of a month and penalties computed from the date the taxes were
5 last payable without
interest or penalty. Additional interest
6 Interest on any tax set forth in a corrected or supplemental tax
7 bill shall again begin to accrue 60 days after the date the
8 corrected or supplemental tax bill is issued at the rate of 1.25%
9 per month or fraction of a month. Taxes levied in a corrected or
10 supplemental tax bill shall be returned as delinquent on the
11 March 1 in the year immediately succeeding the year in which the
12 corrected or supplemental tax bill is issued. If the department
13 of treasury denies an existing claim for exemption, the interest
14 due shall be distributed
as provided in subsection (24) (23).
15 However, if the property has been transferred to a bona fide
16 purchaser before additional taxes were billed to the seller as a
17 result of the denial of a claim for exemption, the taxes,
18 interest, and penalties shall not be a lien on the property and
19 shall not be billed to the bona fide purchaser, and the local tax
20 collecting unit if the local tax collecting unit has possession
21 of the tax roll or the county treasurer if the county has
22 possession of the tax roll shall notify the department of
23 treasury of the amount of tax due and interest through the date
24 of that notification. The department of treasury shall then
25 assess the owner who claimed the exemption under this section for
26 the tax and interest plus penalty accruing as a result of the
27 denial of the claim for exemption, if any, as for unpaid taxes
1 provided under 1941 PA 122, MCL 205.1 to 205.31, and shall
2 deposit any tax or penalty collected into the state school aid
3 fund and shall distribute any interest collected as provided in
4 subsection (24) (23).
5 (9) The department of treasury may enter into an agreement
6 regarding the implementation or administration of subsection (8)
7 with the assessor of any local tax collecting unit in a county
8 that has not elected to audit exemptions claimed under this
9 section as provided in subsection (10). The agreement may
10 specify that for a period of time, not to exceed 120 days, the
11 department of treasury will not deny an exemption identified by
12 the department of treasury in the list provided under subsection
13 (11).
14 (10) A county may elect to audit the exemptions claimed under
15 this section in all local tax collecting units located in that
16 county as provided in this subsection. The election to audit
17 exemptions shall be made by the county treasurer, or by the
18 county equalization director with the concurrence by resolution
19 of the county board of commissioners. The initial election to
20 audit exemptions shall require an audit period of 2 years.
21 Subsequent elections to audit exemptions shall be made every 2
22 years and shall require 2 annual audit periods. An election to
23 audit exemptions shall be made by submitting an election to audit
24 form to the assessor of each local tax collecting unit in that
25 county and to the department of treasury not later than October 1
26 in the year in which an election to audit is made. The election
27 to audit form required under this subsection shall be in a form
1 prescribed by the department of treasury. If a county elects to
2 audit the exemptions claimed under this section, the department
3 of treasury may continue to review the validity of exemptions as
4 provided in subsection (8). If a county does not elect to audit
5 the exemptions claimed under this section as provided in this
6 subsection, the department of treasury shall conduct an audit of
7 exemptions claimed under this section in the initial 2-year audit
8 period for each local tax collecting unit in that county unless
9 the department of treasury has entered into an agreement with the
10 assessor for that local tax collecting unit under subsection
11 (9).
12 (11) If a county elects to audit the exemptions claimed under
13 this section as provided in subsection (10) and the county
14 treasurer or his or her designee or the county equalization
15 director or his or her designee believes that the property for
16 which an exemption is claimed is not the principal residence of
17 the owner claiming the exemption, the county treasurer or his or
18 her designee or the county equalization director or his or her
19 designee may deny an existing claim by notifying the owner, the
20 assessor of the local tax collecting unit, and the department of
21 treasury in writing of the reason for the denial and advising the
22 owner that the denial may be appealed to the residential and
23 small claims division of the Michigan tax tribunal within 35 days
24 after the date of the notice. The county treasurer or his or her
25 designee or the county equalization director or his or her
26 designee may deny a claim for exemption for the current year and
27 for the 3 immediately preceding calendar years. If the county
1 treasurer or his or her designee or the county equalization
2 director or his or her designee denies an existing claim for
3 exemption, the county treasurer or his or her designee or the
4 county equalization director or his or her designee shall direct
5 the assessor of the local tax collecting unit in which the
6 property is located to remove the exemption of the property from
7 the assessment roll and, if the tax roll is in the local tax
8 collecting unit's possession, direct the assessor of the local
9 tax collecting unit to amend the tax roll to reflect the denial
10 and the treasurer of the local tax collecting unit shall within
11 30 days of the date of the denial issue a corrected tax bill for
12 previously unpaid any additional taxes with interest at the
13 rate of 1.25% per month or fraction of a month and penalties
14 computed from the date the taxes were last payable without
15 interest and penalty. If the tax roll is in the county
16 treasurer's possession, the tax roll shall be amended to reflect
17 the denial and the county treasurer shall within 30 days of the
18 date of the denial prepare and submit a supplemental tax bill for
19 any additional taxes, together with interest at the rate of 1.25%
20 per month or fraction of a month and penalties computed from the
21 date the taxes were last payable without interest or penalty.
22 Additional interest Interest on any tax set forth in a
23 corrected or supplemental tax bill shall again begin to accrue 60
24 days after the date the corrected or supplemental tax bill is
25 issued at the rate of 1.25% per month or fraction of a month.
26 Taxes levied in a corrected or supplemental tax bill shall be
27 returned as delinquent on the March 1 in the year immediately
1 succeeding the year in which the corrected or supplemental tax
2 bill is issued. If the county treasurer or his or her designee
3 or the county equalization director or his or her designee denies
4 an existing claim for exemption, the interest due shall be
5 distributed as provided
in subsection (24) (23). However, if
6 the property has been transferred to a bona fide purchaser before
7 additional taxes were billed to the seller as a result of the
8 denial of a claim for exemption, the taxes, interest, and
9 penalties shall not be a lien on the property and shall not be
10 billed to the bona fide purchaser, and the local tax collecting
11 unit if the local tax collecting unit has possession of the tax
12 roll or the county treasurer if the county has possession of the
13 tax roll shall notify the department of treasury of the amount of
14 tax due and interest through the date of that notification. The
15 department of treasury shall then assess the owner who claimed
16 the exemption under this section for the tax and interest plus
17 penalty accruing as a result of the denial of the claim for
18 exemption, if any, as for unpaid taxes provided under 1941 PA
19 122, MCL 205.1 to 205.31, and shall deposit any tax or penalty
20 collected into the state school aid fund and shall distribute any
21 interest collected as
provided in subsection (24) (23). The
22 department of treasury shall annually provide the county
23 treasurer or his or her designee or the county equalization
24 director or his or her designee a list of parcels of property
25 located in that county for which an exemption may be erroneously
26 claimed. The county treasurer or his or her designee or the
27 county equalization director or his or her designee shall forward
1 copies of the list provided by the department of treasury to each
2 assessor in each local tax collecting unit in that county within
3 10 days of receiving the list.
4 (12) If a county elects to audit exemptions claimed under
5 this section as provided in subsection (10), the county treasurer
6 or the county equalization director may enter into an agreement
7 with the assessor of a local tax collecting unit in that county
8 regarding the implementation or administration of this section.
9 The agreement may specify that for a period of time, not to
10 exceed 120 days, the county will not deny an exemption identified
11 by the department of treasury in the list provided under
12 subsection (11).
13 (13) An owner may appeal a denial by the assessor of the
14 local tax collecting unit under subsection (6), a final decision
15 of the department of treasury under subsection (8), or a denial
16 by the county treasurer or his or her designee or the county
17 equalization director or his or her designee under subsection
18 (11) to the residential and small claims division of the Michigan
19 tax tribunal within 35 days of that decision. An owner is not
20 required to pay the amount of tax in dispute in order to appeal a
21 denial of a claim of exemption to the department of treasury or
22 to receive a final determination of the residential and small
23 claims division of the Michigan tax tribunal. However, interest
24 at the rate of 1.25% per month or fraction of a month and
25 penalties shall accrue and be computed from the date the taxes
26 were last payable without interest and penalty. If the
27 residential and small claims division of the Michigan tax
1 tribunal grants an owner's appeal of a denial and that owner has
2 paid the interest due as a result of a denial under subsection
3 (6), (8), or (11), the interest received after a distribution was
4 made under subsection (24)
(23) shall be refunded.
5 (14) For taxes levied after December 31, 2005, for each
6 county in which the county treasurer or the county equalization
7 director does not elect to audit the exemptions claimed under
8 this section as provided in subsection (10), the department of
9 treasury shall conduct an annual audit of exemptions claimed
10 under this section for the current calendar year.
11 (15) An affidavit filed by an owner for the exemption under
12 this section rescinds all previous exemptions filed by that owner
13 for any other property. The department of treasury shall notify
14 the assessor of the local tax collecting unit in which the
15 property for which a previous exemption was claimed is located
16 that the previous exemption is rescinded by the subsequent
17 affidavit. Upon
receipt of notice that When an exemption is
18 rescinded, the assessor of the local tax collecting unit shall
19 remove the exemption effective December 31 of the year in which
20 the property is
transferred or is no longer a principal
21 residence as defined
in section 7dd. The assessor of the local
22 tax collecting unit in
which that property is located shall
23 notify the treasurer
in possession of the tax roll for a year for
24 which the exemption is
rescinded. If the tax roll is in the
25 local tax collecting
unit's possession, the tax roll shall be
26 amended to reflect the
rescission and the local treasurer shall
27 prepare and issue a
corrected tax bill for previously unpaid
1 taxes with interest
and penalties computed based on the interest
2 and penalties that
would have accrued from the date the taxes
3 were originally levied
if there had not been an exemption for
4 that year. If the tax
roll is in the county treasurer's
5 possession, the tax
roll shall be amended to reflect the
6 rescission and the
county treasurer shall prepare and submit a
7 supplemental tax bill
for any additional taxes, together with any
8 interest and
penalties. However, if the property has been
9 transferred to a bona
fide purchaser, the taxes, interest, and
10 penalties shall not be
billed to the bona fide purchaser, and the
11 local tax collecting
unit if the local tax collecting unit has
12 possession of the tax
roll or the county treasurer if the county
13 has possession of the
tax roll shall notify the department of
14 treasury of the amount
of tax due and interest through the date
15 of that notification.
The department of treasury shall then
16 assess the owner who
received the exemption under this section
17 when the property was
not a principal residence as defined in
18 section 7dd for the
tax and interest plus penalty accruing, if
19 any, as for unpaid
taxes provided under 1941 PA 122, MCL 205.1 to
20 205.31, and shall
deposit any tax, interest, or penalty collected
21 into the state school
aid fund. affidavit was filed
that
22 rescinded the exemption. For any year for which the rescinded
23 exemption has not been removed from the tax roll, the exemption
24 shall be denied as provided in this section. However, interest
25 and penalty shall not be imposed for a year for which a
26 rescission form has been timely filed under subsection (5).
27 (16) An owner of
property for which a claim of exemption is
1 rescinded may appeal
that rescission with either the July or
2 December board of
review in either the year for which the
3 exemption is rescinded
or in the immediately succeeding year. If
4 an appeal of a
rescission of a claim for exemption is received
5 not later than 5 days
prior to the date of the December board of
6 review, the local tax
collecting unit shall convene a December
7 board of review and
consider the appeal pursuant to this section
8 and section 53b. An
owner of property for which a claim of
9 exemption is rescinded
may appeal the decision of the board of
10 review to the
residential and small claims division of the
11 Michigan tax tribunal within 35 days of that decision.
12 (16) (17) If
the principal residence is part of a unit in a
13 multiple-unit dwelling or a dwelling unit in a multiple-purpose
14 structure, an owner shall claim an exemption for only that
15 portion of the total taxable value of the property used as the
16 principal residence of that owner in a manner prescribed by the
17 department of treasury. If a portion of a parcel for which the
18 owner claims an exemption is used for a purpose other than as a
19 principal residence, the owner shall claim an exemption for only
20 that portion of the taxable value of the property used as the
21 principal residence of that owner in a manner prescribed by the
22 department of treasury.
23 (17) (18) When
a county register of deeds records a
24 transfer of ownership of a property, he or she shall notify the
25 local tax collecting unit in which the property is located of the
26 transfer.
27 (18) (19) The
department of treasury shall make available
1 the affidavit forms and the forms to rescind an exemption, which
2 may be on the same form, to all city and township assessors,
3 county equalization officers, county registers of deeds, and
4 closing agents. A person who prepares a closing statement for
5 the sale of property shall provide affidavit and rescission forms
6 to the buyer and seller at the closing and, if requested by the
7 buyer or seller after execution by the buyer or seller, shall
8 file the forms with the local tax collecting unit in which the
9 property is located. If a closing statement preparer fails to
10 provide exemption affidavit and rescission forms to the buyer and
11 seller, or fails to file the affidavit and rescission forms with
12 the local tax collecting unit if requested by the buyer or
13 seller, the buyer may appeal to the department of treasury within
14 30 days of notice to the buyer that an exemption was not
15 recorded. If the department of treasury determines that the
16 buyer qualifies for the exemption, the department of treasury
17 shall notify the assessor of the local tax collecting unit that
18 the exemption is granted and the assessor of the local tax
19 collecting unit or, if the tax roll is in the possession of the
20 county treasurer, the county treasurer shall correct the tax roll
21 to reflect the exemption. This subsection does not create a
22 cause of action at law or in equity against a closing statement
23 preparer who fails to provide exemption affidavit and rescission
24 forms to a buyer and seller or who fails to file the affidavit
25 and rescission forms with the local tax collecting unit when
26 requested to do so by the buyer or seller.
27 (19) (20) An
owner who owned and occupied a principal
1 residence on May 1 for
taxes levied before January 1,
2004 and
2 the tax day as
provided in section 2 for taxes levied after
3 December 31, 2003 for which
the exemption was not on the tax
4 roll may file an appeal with the July board of review or December
5 board of review in the year for which the exemption was claimed
6 or the immediately succeeding 3 years. If an appeal of a claim
7 for exemption that was not on the tax roll is received not later
8 than 5 days prior to the date of the December board of review,
9 the local tax collecting unit shall convene a December board of
10 review and consider the appeal pursuant to this section and
11 section 53b.
12 (20) (21) If
the assessor or treasurer of the local tax
13 collecting unit believes that the department of treasury
14 erroneously denied a claim for exemption, the assessor or
15 treasurer may submit written information supporting the owner's
16 claim for exemption to the department of treasury within 35 days
17 of the owner's receipt of the notice denying the claim for
18 exemption. If, after reviewing the information provided, the
19 department of treasury determines that the claim for exemption
20 was erroneously denied, the department of treasury shall grant
21 the exemption and the tax roll shall be amended to reflect the
22 exemption.
23 (21) (22) If
granting the exemption under this section
24 results in an overpayment of the tax, a rebate, including any
25 interest paid, shall be made to the taxpayer by the local tax
26 collecting unit if the local tax collecting unit has possession
27 of the tax roll or by the county treasurer if the county has
1 possession of the tax roll within 30 days of the date the
2 exemption is granted. The rebate shall be without interest.
3 (22) (23) If
an exemption under this section is erroneously
4 granted for an affidavit filed before October 1, 2003, an owner
5 may request in writing that the department of treasury withdraw
6 the exemption. The request to withdraw the exemption shall be
7 received not later than November 1, 2003. If an owner requests
8 that an exemption be withdrawn, the department of treasury shall
9 issue an order notifying the local assessor that the exemption
10 issued under this section has been denied based on the owner's
11 request. If an exemption is withdrawn, the property that had
12 been subject to that exemption shall be immediately placed on the
13 tax roll by the local tax collecting unit if the local tax
14 collecting unit has possession of the tax roll or by the county
15 treasurer if the county has possession of the tax roll as though
16 the exemption had not been granted. A corrected tax bill shall
17 be issued for the tax year being adjusted by the local tax
18 collecting unit if the local tax collecting unit has possession
19 of the tax roll or by the county treasurer if the county has
20 possession of the tax roll. Unless a denial has been issued
21 prior to July 1, 2003, if an owner requests that an exemption
22 under this section be withdrawn and that owner pays the corrected
23 tax bill issued under this subsection within 30 days after the
24 corrected tax bill is issued, that owner is not liable for any
25 penalty or interest on the additional tax. An owner who pays a
26 corrected tax bill issued under this subsection more than 30 days
27 after the corrected tax bill is issued is liable for the
1 penalties and interest that would have accrued if the exemption
2 had not been granted from the date the taxes were originally
3 levied.
4 (23) (24) Subject
to subsection (25) (24), interest at
5 the rate of 1.25% per month or fraction of a month collected
6 under subsection (6), (8), or (11) shall be distributed as
7 follows:
8 (a) If the assessor of the local tax collecting unit denies
9 the exemption under this section, as follows:
10 (i) To the local tax collecting unit, 70%.
11 (ii) To the department of treasury, 10%.
12 (iii) To the county in which the property is located, 20%.
13 (b) If the department of treasury denies the exemption this
14 section, as follows:
15 (i) To the local tax collecting unit, 20%.
16 (ii) To the department of treasury, 70%.
17 (iii) To the county in which the property is located, 10%.
18 (c) If the county treasurer or his or her designee or the
19 county equalization director or his or her designee denies the
20 exemption under this section, as follows:
21 (i) To the local tax collecting unit, 20%.
22 (ii) To the department of treasury, 10%.
23 (iii) To the county in which the property is located, 70%.
24 (24) (25) Interest
distributed under subsection (24) (23)
25 is subject to the following conditions:
26 (a) Interest distributed to a county shall be deposited into
27 a restricted fund to be used solely for the administration of
1 exemptions under this section. Money in that restricted fund
2 shall lapse to the county general fund on the December 31 in the
3 year 3 years after the first distribution of interest to the
4 county under subsection (24)
(23) and on each succeeding
5 December 31 thereafter.
6 (b) Interest distributed to the department of treasury shall
7 be deposited into the principal residence property tax exemption
8 audit fund, which is created within the state treasury. The
9 state treasurer may receive money or other assets from any source
10 for deposit into the fund. The state treasurer shall direct the
11 investment of the fund. The state treasurer shall credit to the
12 fund interest and earnings from fund investments. Money in the
13 fund shall be considered a work project account and at the close
14 of the fiscal year shall remain in the fund and shall not lapse
15 to the general fund. Money from the fund shall be expended, upon
16 appropriation, only for the purpose of auditing exemption
17 affidavits.
18 (25) (26) Interest
distributed under subsection (24) (23)
19 is in addition to and shall not affect the levy or collection of
20 the county property tax administration fee established under this
21 act.
22 (26) (27) A
cooperative housing corporation is entitled to
23 a full or partial exemption under this section for the tax year
24 in which the cooperative housing corporation files all of the
25 following with the local tax collecting unit in which the
26 cooperative housing corporation is located if filed on or before
27 May 1: for
taxes levied before January 1,
2004 and the tax day
1 as provided in section
2 for taxes levied after December 31,
2 2003:
3 (a) An affidavit form.
4 (b) A statement of the total number of units owned by the
5 cooperative housing corporation and occupied as the principal
6 residence of a tenant stockholder as of the date of the filing
7 under this subsection.
8 (c) A list that includes the name, address, and social
9 security number of each tenant stockholder of the cooperative
10 housing corporation occupying a unit in the cooperative housing
11 corporation as his or her principal residence as of the date of
12 the filing under this subsection.
13 (d) A statement of the total number of units of the
14 cooperative housing corporation on which an exemption under this
15 section was claimed and that were transferred in the tax year
16 immediately preceding the tax year in which the filing under this
17 section was made.
18 (27) (28) Before
May 1, 2004 and before May 1, 2005, the
19 treasurer of each county shall forward to the department of
20 education a statement of the taxable value of each school
21 district and fraction of a school district within the county for
22 the preceding 4 calendar years. This requirement is in addition
23 to the requirement set forth in section 151 of the state school
24 aid act of 1979, 1979 PA 94, MCL 388.1751.
25 Sec. 7ee. (1) Qualified agricultural property is exempt
26 from the tax levied by a local school district for school
27 operating purposes to the extent provided under section 1211 of
1 the revised school code, 1976 PA 451, MCL 380.1211, according to
2 the provisions of this section.
3 (2) Qualified agricultural property that is classified as
4 agricultural under section 34c is exempt under subsection (1) and
5 the owner is not required to file an affidavit claiming an
6 exemption with the local tax collecting unit unless requested by
7 the assessor to determine whether the property includes
8 structures that are not exempt under this section. To claim an
9 exemption under subsection (1) for qualified agricultural
10 property that is not classified as agricultural under section
11 34c, the owner shall file an affidavit claiming the exemption
12 with the local tax
collecting unit by May 1. for taxes levied
13 before January 1, 2004 and the tax day as provided in section 2
14 for taxes levied after
December 31, 2003.
15 (3) The affidavit shall be on a form prescribed by the
16 department of treasury.
17 (4) For property classified as agricultural, and upon receipt
18 of an affidavit filed under subsection (2) for property not
19 classified as agricultural, the assessor shall determine if the
20 property is qualified agricultural property and if so shall
21 exempt the property from the collection of the tax as provided in
22 subsection (1) until December 31 of the year in which the
23 property is no longer qualified agricultural property as defined
24 in section 7dd. An owner is required to file a new claim for
25 exemption on the same property as requested by the assessor under
26 subsection (2).
27 (5) Not more than 90 days after all or a portion of the
1 exempted property is no longer qualified agricultural property,
2 the owner shall rescind the exemption for the applicable portion
3 of the property by filing with the local tax collecting unit a
4 rescission form prescribed by the department of treasury. An
5 owner who fails to file a rescission as required by this
6 subsection is subject to a penalty of $5.00 per day for each
7 separate failure beginning after the 90 days have elapsed, up to
8 a maximum of $200.00. This penalty shall be collected under 1941
9 PA 122, MCL 205.1 to 205.31, and shall be deposited in the state
10 school aid fund established in section 11 of article IX of the
11 state constitution of 1963. This penalty may be waived by the
12 department of treasury.
13 (6) An owner of property that is qualified agricultural
14 property on May 1 for
taxes levied before January 1,
2004 and
15 the tax day as
provided in section 2 for taxes levied after
16 December 31, 2003 for which
an exemption was not on the tax roll
17 may file an appeal with the July or December board of review in
18 the year the exemption was claimed or the immediately succeeding
19 year. An owner of property that is qualified agricultural
20 property on May 1 for
taxes levied before January 1,
2004 and
21 the tax day as
provided in section 2 for taxes levied after
22 December 31, 2003 for which an exemption was denied by the
23 assessor in the year the affidavit was filed, may file an appeal
24 with the July board of review for summer taxes or, if there is
25 not a summer levy of school operating taxes, with the December
26 board of review.
27 (7) If the assessor of the local tax collecting unit believes
1 that the property for which an exemption has been granted is not
2 qualified agricultural property, the assessor may deny or modify
3 an existing exemption by notifying the owner in writing at the
4 time required for providing a notice under section 24c. A
5 taxpayer may appeal the assessor's determination to the board of
6 review meeting under section 30. A decision of the board of
7 review may be appealed to the residential and small claims
8 division of the Michigan tax tribunal.
9 (8) If an exemption under this section is erroneously
10 granted, an owner may request in writing that the local tax
11 collecting unit withdraw the exemption. If an owner requests
12 that an exemption be withdrawn, the local assessor shall notify
13 the owner that the exemption issued under this section has been
14 denied based on that owner's request. If an exemption is
15 withdrawn, the property that had been subject to that exemption
16 shall be immediately placed on the tax roll by the local tax
17 collecting unit if the local tax collecting unit has possession
18 of the tax roll or by the county treasurer if the county has
19 possession of the tax roll as though the exemption had not been
20 granted. A corrected tax bill shall be issued for the tax year
21 being adjusted by the local tax collecting unit if the local tax
22 collecting unit has possession of the tax roll or by the county
23 treasurer if the county has possession of the tax roll. If an
24 owner requests that an exemption under this section be withdrawn
25 before that owner is contacted in writing by the local assessor
26 regarding that owner's eligibility for the exemption and that
27 owner pays the corrected tax bill issued under this subsection
1 within 30 days after the corrected tax bill is issued, that owner
2 is not liable for any penalty or interest on the additional tax.
3 An owner who pays a corrected tax bill issued under this
4 subsection more than 30 days after the corrected tax bill is
5 issued is liable for the penalties and interest that would have
6 accrued if the exemption had not been granted from the date the
7 taxes were originally levied.
8 Sec. 24c. (1) The assessor shall give to each owner or
9 person or persons listed on the assessment roll of the property a
10 notice by first-class mail of an increase in the tentative state
11 equalized valuation or the tentative taxable value for the year.
12 The notice shall specify each parcel of property, the tentative
13 taxable value for the current year, and the taxable value for the
14 immediately preceding year. The notice shall also specify the
15 time and place of the meeting of the board of review. The notice
16 shall also specify the difference between the property's
17 tentative taxable value in the current year and the property's
18 taxable value in the immediately preceding year.
19 (2) The notice shall include, in addition to the information
20 required by subsection (1), all of the following:
21 (a) The state equalized valuation for the immediately
22 preceding year.
23 (b) The tentative state equalized valuation for the current
24 year.
25 (c) The net change between the tentative state equalized
26 valuation for the current year and the state equalized valuation
27 for the immediately preceding year.
1 (d) The classification of the property as defined by section
2 34c.
3 (e) The inflation rate for the immediately preceding year as
4 defined in section 34d.
5 (f) A statement provided by the state tax commission
6 explaining the relationship between state equalized valuation and
7 taxable value. If the assessor believes that a transfer of
8 ownership has occurred in the immediately preceding year, the
9 statement shall state that the ownership was transferred and that
10 the taxable value of that property is the same as the state
11 equalized valuation of that property.
12 (3) When required by the income tax act of 1967, 1967 PA 281,
13 MCL 206.1 to 206.532, the assessment notice shall include or be
14 accompanied by information or forms prescribed by the income tax
15 act of 1967, 1967 PA 281, MCL 206.1 to 206.532.
16 (4) The assessment notice shall be addressed to the owner
17 according to the records of the assessor and mailed not less than
18 10 days before the meeting of the board of review. The failure
19 to send or receive an assessment notice does not invalidate an
20 assessment roll or an assessment on that property.
21 (5) The tentative state equalized valuation shall be
22 calculated by multiplying the assessment by the tentative
23 equalized valuation multiplier. If the assessor has made
24 assessment adjustments that would have changed the tentative
25 multiplier, the assessor may recalculate the multiplier for use
26 in the notice.
27 (6) The state tax commission shall prepare a model assessment
1 notice form that shall be made available to local units of
2 government.
3 (7) Beginning in
1995 through 2003, the The assessment
4 notice under subsection (1) shall include the following
5 statement:
6 "If you
purchased your homestead principal
7 residence after May 1 last year, to claim the
8 homestead principal
residence exemption, if you
9 have not already done so, you are required to file an
10 affidavit before May 1.".
11 (8) Beginning in
2004, the assessment notice under
12 subsection (1) shall include
the following statement:
13 "If you
purchased your principal residence after
14 December 31 last
year, to claim the principal
15 residence
exemption for next year, if you have not
16 already done so,
you are required to file an
17 affidavit on or
before December 31 this year.".
18 (8) (9) For
taxes levied after December 31, 2003, the
19 assessment notice under subsection (1) shall separately state the
20 state equalized valuation and taxable value for any leasehold
21 improvements.
22 Sec. 154. (1) If the state tax commission determines that
23 property liable to
taxation subject to the collection of taxes
24 under this act, including property subject to taxation under 1974
25 PA 198, MCL 207.551 to 207.572, 1905 PA 282, MCL 207.1 to 207.21,
1 1953 PA 189, MCL 211.181 to 211.182, and the commercial
2 redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, has been
3 incorrectly reported or omitted for any previous year, but not to
4 exceed the current assessment year and 2 years immediately
5 preceding the date of
discovery and disclosure the incorrect
6 reporting or omission was discovered and disclosed to the state
7 tax commission, of
the incorrect reporting or omission, the
8 state tax commission shall place the corrected assessment value
9 for the appropriate years on the appropriate assessment roll.
10 The state tax commission shall issue an order certifying to the
11 treasurer of the local tax collecting unit if the local tax
12 collecting unit has possession of a tax roll for a year for which
13 an assessment change is made or the county treasurer if the
14 county has possession of a tax roll for a year for which an
15 assessment change is made the amount of taxes due as computed by
16 the correct annual rate of taxation for each year except the
17 current year. Taxes computed under this section shall not be
18 spread against the property for a period before the last change
19 of ownership of the property.
20 (2) If an assessment change made under this section results
21 in increased property taxes, the additional taxes shall be
22 collected by the treasurer of the local tax collecting unit if
23 the local tax collecting unit has possession of a tax roll for a
24 year for which an assessment change is made or by the county
25 treasurer if the county has possession of a tax roll for a year
26 for which an assessment change is made. Not later than 20 days
27 after receiving the order certifying the amount of taxes due
1 under subsection (1), the treasurer of the local tax collecting
2 unit if the local tax collecting unit has possession of a tax
3 roll for a year for which an assessment change is made or the
4 county treasurer if the county has possession of a tax roll for a
5 year for which an assessment change is made shall submit a
6 corrected tax bill, itemized by taxing jurisdiction, to each
7 person identified in the order and to the owner of the property
8 on which the additional taxes are assessed, if different than a
9 person named in the order, by first-class mail, address
10 correction requested. Except for real property subject to
11 taxation under 1974 PA
198, MCL 207.551 to 207.562 207.572,
12 1905 PA 282, MCL 207.1 to 207.21, 1953 PA 189, MCL 211.181 to
13 211.182, and the commercial redevelopment act, 1978 PA 255, MCL
14 207.651 to 207.668, and for real property only, if the additional
15 taxes remain unpaid on the March 1 in the year immediately
16 succeeding the year in which the state tax commission issued the
17 order certifying the additional taxes under subsection (1), the
18 real property on which the additional taxes are due shall be
19 returned as delinquent to the county treasurer. Real property
20 returned for delinquent taxes under this section, and upon which
21 taxes, interest, penalties, and fees remain unpaid after the
22 property is returned as delinquent to the county treasurer, is
23 subject to forfeiture, foreclosure, and sale for the enforcement
24 and collection of the delinquent taxes as provided in sections 78
25 to 79a.
26 (3) Except as otherwise provided in subsection (4), a
27 corrected tax bill based on an assessment roll corrected for
1 incorrectly reported or omitted personal property that is issued
2 after the effective date of the amendatory act that added this
3 subsection shall include penalty and interest at the rate of
4 1.25% per month or fraction of a month from the date the taxes
5 originally could have been paid without interest or penalty. If
6 the tax bill has not been paid within 60 days after the corrected
7 tax bill is issued, interest shall again begin to accrue at the
8 rate of 1.25% per month or fraction of a month.
9 (4) If a person requests that an increased assessment due to
10 incorrectly reported or omitted personal property be added to the
11 assessment roll under this section before March 1, 2004 with
12 respect to statements filed or required to be filed under section
13 19 for taxes levied before January 1, 2004, and the corrected tax
14 bill issued under this subsection is paid within 30 days after
15 the corrected tax bill is issued, that person is not liable for
16 any penalty or interest on that portion of the additional tax
17 attributable to the increased assessment resulting from that
18 request. However, a person who pays a corrected tax bill issued
19 under this subsection more than 30 days after the corrected tax
20 bill is issued is liable for the penalties and interest imposed
21 under subsection (3).
22 (5) Except as otherwise provided in this section, the
23 treasurer of the local tax collecting unit or the county
24 treasurer shall disburse the payments of interest received to
25 this state and to a city, township, village, school district,
26 county, and authority, in the same proportion as required for the
27 disbursement of taxes collected under this act. The amount to be
1 disbursed to a local school district, except for that amount of
2 interest attributable to mills levied under section 1211(2) or
3 1211c of the revised school code, 1976 PA 451, MCL 380.1211 and
4 380.1211c, and mills that are not included as mills levied for
5 school operating purposes under section 1211 of the revised
6 school code, 1976 PA 451, MCL 380.1211, shall be paid to the
7 state treasury and credited to the state school aid fund
8 established by section 11 of article IX of the state constitution
9 of 1963. For an intermediate school district receiving state aid
10 under section 56, 62, or 81 of the state school aid act of 1979,
11 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, of the interest
12 that would otherwise be disbursed to or retained by the
13 intermediate school district, all or a portion, to be determined
14 on the basis of the tax rates being utilized to compute the
15 amount of the state school aid, shall be paid instead to the
16 state treasury and credited to the state school aid fund
17 established by section 11 of article IX of the state constitution
18 of 1963.
19 (6) (3) If
an assessment change made under this section
20 results in a decreased tax liability, a refund of excess tax
21 payments shall be made by the county treasurer and shall include
22 interest at the rate of 1% per month or fraction of a month for
23 taxes levied before January 1, 1997 and interest at the rate
24 provided under section 37 of the tax tribunal act, 1973 PA 186,
25 MCL 205.737, for taxes levied after December 31, 1996, from the
26 date of the payment of the tax to the date of the payment of the
27 refund. The county treasurer shall charge a refund of excess tax
1 payments under this subsection to the various taxing
2 jurisdictions in the same proportion as the taxes levied.
3 (7) (4) A
person to whom property is assessed under this
4 section may appeal the state tax commission's order to the
5 Michigan tax tribunal.