HOUSE BILL No. 4521

 

March 17, 2005, Introduced by Rep. Sheltrown and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 3 and 24 (MCL 211.3 and 211.24), section 24 as

 

amended by 2002 PA 620.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) Real property shall be assessed in the  township

 

or place where  local tax collecting unit in which the real

 

property is situated, to the owner if known, and also to the

 

occupant, if any.  ; if

 

     (2) If the owner  be  is not known and there  be  is an

 

occupant, then  to such  the real property shall be assessed to the

 

occupant  ,  and either  or both  the owner or the occupant shall

 

be liable for the taxes on  said  that real property.  , and if


 

there be no

 

     (3) If there is no known owner or occupant,  known, then  the

 

real property shall be assessed as unknown and the assessor shall

 

give to each owner of contiguous real property, or to each person

 

listed on the assessment roll for contiguous real property, notice

 

of the assessment by first-class mail when the real property is

 

initially assessed as unknown.

 

     (4) A trustee, guardian, executor, administrator, assignee, or

 

agent,  having  in control or possession of real property, may be

 

treated as the owner for assessment purposes.

 

     (5) The real property  which  that belonged to a person who is

 

deceased  ,  that is not  being  in the control of an executor or

 

administrator  ,  may be assessed to  his  the decedent's heirs or

 

devisees jointly, without naming  them  the heirs or devisees,

 

until  they shall have given  the heirs or devisees give notice of

 

their respective names to the  supervisor,  assessor and of the

 

division of the decedent's estate.

 

     Sec. 24. (1) On or before the first Monday in March in each

 

year, the assessor shall make and complete an assessment roll, upon

 

which he or she shall set down all of the following:

 

     (a) The name and address of every person liable to be taxed in

 

the local tax collecting unit with a full description of all the

 

real property liable to be taxed. If the name of the owner or

 

occupant of any tract or parcel of real property is known, the

 

assessor shall enter the name and address of the owner or occupant

 

opposite to the description of the property. If unknown, the real

 

property described upon the roll shall be assessed as "owner


 

unknown" and the assessor shall give to each owner of contiguous

 

real property, or to each person listed on the assessment roll for

 

contiguous real property, notice of the assessment by first-class

 

mail when the real property is initially assessed as unknown. All

 

contiguous subdivisions of any section that are owned by 1 person,

 

firm, corporation, or other legal entity and all unimproved lots in

 

any block that are contiguous and owned by 1 person, firm,

 

corporation, or other legal entity shall be assessed as 1 parcel,

 

unless demand in writing is made by the owner or occupant to have

 

each subdivision of the section or each lot assessed separately.

 

However, failure to assess contiguous parcels as entireties does

 

not invalidate the assessment as made. Each description shall show

 

as near as possible the number of acres contained in it, as

 

determined by the assessor. It is not necessary for the assessment

 

roll to specify the quantity of land comprised in any town, city,

 

or village lot.

 

     (b) The assessor shall estimate, according to his or her best

 

information and judgment, the true cash value and assessed value of

 

every parcel of real property and set the assessed value down

 

opposite the parcel.

 

     (c) The assessor shall calculate the tentative taxable value

 

of every parcel of real property and set that value down opposite

 

the parcel.

 

     (d) The assessor shall determine the percentage of value of

 

every parcel of real property that is exempt from the tax levied by

 

a local school district for school operating purposes to the extent

 

provided under section 1211 of the revised school code, 1976 PA


 

451, MCL 380.1211, and set that percentage of value down opposite

 

the parcel.

 

     (e) The assessor shall determine the date of the last transfer

 

of ownership of every parcel of real property occurring after

 

December 31, 1994 and set that date down opposite the parcel.

 

     (f) The assessor shall estimate the true cash value of all the

 

personal property of each person, and set the assessed value and

 

tentative taxable value down opposite the name of the person. In

 

determining the property to be assessed and in estimating the value

 

of that property, the assessor is not bound to follow the

 

statements of any person, but shall exercise his or her best

 

judgment. For taxes levied after December 31, 2003, the assessor

 

shall separately state the assessed value and tentative taxable

 

value of any leasehold improvements.

 

     (g) Property assessed to a person other than the owner shall

 

be assessed separately from the owner's property and shall show in

 

what capacity it is assessed to that person, whether as agent,

 

guardian, or otherwise. Two or more persons not being copartners,

 

owning personal property in common, may each be assessed severally

 

for each person's portion. Undivided interests in lands owned by

 

tenants in common, or joint tenants not being copartners, may be

 

assessed to the owners.

 

     (2) The state geologist, or his or her duly authorized deputy,

 

shall determine, according to his or her best information and

 

judgment, the true cash value of the metallic mining properties and

 

mineral rights consisting of metallic resources that are either

 

producing, developed, or have a known commercial mineral value,


 

including surface rights and personal property that may be used in

 

the operation or development of the property assessed, or any

 

stockpile of ore or mineral stored on the surface. For the purpose

 

of encouraging the exploration and development of metallic mineral

 

resources, metallic mineral ore newly discovered or proven in the

 

ground and not part of the property of an operating mine shall be

 

exempt from the taxes collected under this act for a maximum period

 

of 10 years or until the time it becomes part of the property of an

 

operating mine or it in itself becomes an operating mine. Metallic

 

mineral ore newly discovered or proven in the ground and part of

 

the property of an operating mine shall be exempt from taxes

 

collected under this act until it, in combination with previously

 

discovered metallic mineral ore of the operating mine, comes into a

 

10-year recovery period of the mine as determined by the average

 

normal annual rate of extraction of the mine.

 

     (3) An operating mine shall be defined to be an operating mine

 

as of the date of starting of a shaft, stripping of overburden, or

 

rehabilitation, or an abandoned or idle mine closed for not less

 

than 2 years. Ore shall not  enjoy  be exempt from the collection

 

of taxes under this act for more than 10  years' exemption from

 

taxation  years. This section does not exempt from the collection

 

of taxes  collected  under this act ore reserves proven as of April

 

1, 1947. It is the intent of this act that mineral properties shall

 

be valued and assessed in the future for ad valorem taxes according

 

to the formula used in the valuation of mineral properties before

 

the effective date of this act. It is the intent of this act that

 

no metallic mineral ore shall be exempt from the collection of


 

taxes under this act for more than 10 years because of the

 

application of this  act  section and if at any time it becomes

 

evident that such is the case, the state tax commission shall

 

determine the value of  this  the untaxed ore and place  this  that

 

valuation on the proper tax roll. The state geologist shall report

 

his or her determination of the true cash value of the mineral

 

properties to the state tax commission on or before February 10 of

 

each year. The state tax commission shall assess the mineral

 

properties containing 20% or more of natural iron per ton of ore in

 

conformity and uniformity with all other property within the

 

assessing district. The state tax commission shall assess all other

 

metallic mineral properties at the value certified by the state

 

geologist. The state tax commission, as early as is practicable

 

before February 20, shall certify the assessment of the property to

 

the assessor of the township or city in which the property is

 

situated, who shall for the mineral properties and mineral rights

 

that are owned separate from the surface rights on the property

 

assess each to the owner at the valuation certified to him or her.

 

However, an adjustment to the value certified by the state tax

 

commission may be made by the assessor of the township or city to

 

reflect any general adjustment of assessed valuation from the

 

immediately preceding year not included in the state tax commission

 

computation. The assessor shall determine the true cash value of

 

the surface rights and assess the value of the surface rights to

 

the owner. The assessment upon the metallic mining properties and

 

mineral rights may be altered from year to year regardless of

 

whether any previous assessment has been reviewed by the state tax


 

commission. The assessor or the owner of any interest in the

 

property assessed may appeal the assessment and valuation of the

 

property as determined by the board of review to the state tax

 

commission, which shall review the assessment and valuation as

 

provided in section 152.