June 19, 2007, Introduced by Reps. Warren, Farrah, Griffin and Sheltrown and referred to the Committee on Commerce.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 154 (MCL 211.154), as amended by 2003 PA 247.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 154. (1) If the state tax commission determines that
property subject to the collection of taxes under this act,
including property subject to taxation under 1974 PA 198, MCL
207.551 to 207.572, 1905 PA 282, MCL 207.1 to 207.21, 1953 PA 189,
MCL 211.181 to 211.182, and the commercial redevelopment act, 1978
PA 255, MCL 207.651 to 207.668, has been incorrectly reported or
omitted for any previous year, but not to exceed the current
assessment year and 2 years immediately preceding the date the
incorrect reporting or omission was discovered and disclosed to the
state tax commission, the state tax commission shall place the
corrected assessment value for the appropriate years on the
appropriate assessment roll. The state tax commission shall issue
an order certifying to the treasurer of the local tax collecting
unit if the local tax collecting unit has possession of a tax roll
for a year for which an assessment change is made or the county
treasurer if the county has possession of a tax roll for a year for
which an assessment change is made the amount of taxes due as
computed by the correct annual rate of taxation for each year
except the current year. Taxes computed under this section shall
not be spread against the property for a period before the last
change of ownership of the property.
(2) If an assessment change made under this section results in
increased property taxes, the additional taxes shall be collected
by the treasurer of the local tax collecting unit if the local tax
collecting unit has possession of a tax roll for a year for which
an assessment change is made or by the county treasurer if the
county has possession of a tax roll for a year for which an
assessment change is made. Not later than 20 days after receiving
the order certifying the amount of taxes due under subsection (1),
the treasurer of the local tax collecting unit if the local tax
collecting unit has possession of a tax roll for a year for which
an assessment change is made or the county treasurer if the county
has possession of a tax roll for a year for which an assessment
change is made shall submit a corrected tax bill, itemized by
taxing jurisdiction, to each person identified in the order and to
the owner of the property on which the additional taxes are
assessed, if different than a person named in the order, by first-
class mail, address correction requested. Except for real property
subject to taxation under 1974 PA 198, MCL 207.551 to 207.572, 1905
PA 282, MCL 207.1 to 207.21, 1953 PA 189, MCL 211.181 to 211.182,
and the commercial redevelopment act, 1978 PA 255, MCL 207.651 to
207.668, and for real property only, if the additional taxes remain
unpaid on the March 1 in the year immediately succeeding the year
in which the state tax commission issued the order certifying the
additional taxes under subsection (1), the real property on which
the additional taxes are due shall be returned as delinquent to the
county treasurer. Real property returned for delinquent taxes under
this section, and upon which taxes, interest, penalties, and fees
remain unpaid after the property is returned as delinquent to the
county treasurer, is subject to forfeiture, foreclosure, and sale
for the enforcement and collection of the delinquent taxes as
provided in sections 78 to 79a.
(3) Except as otherwise provided in subsection (4), a
corrected tax bill based on an assessment roll corrected for
incorrectly reported or omitted personal property that is issued
after the effective date of the amendatory act that added this
subsection shall include penalty and interest at the rate of 1.25%
per month or fraction of a month from the date the taxes originally
could have been paid without interest or penalty. If the tax bill
has not been paid within 60 days after the corrected tax bill is
issued, interest shall again begin to accrue at the rate of 1.25%
per month or fraction of a month.
(4) If a person requests that an increased assessment due to
incorrectly reported or omitted personal property be added to the
assessment roll under this section before March 1, 2004 with
respect to statements filed or required to be filed under section
19 for taxes levied before January 1, 2004, and the corrected tax
bill issued under this subsection is paid within 30 days after the
corrected tax bill is issued, that person is not liable for any
penalty or interest on that portion of the additional tax
attributable to the increased assessment resulting from that
request. However, a person who pays a corrected tax bill issued
under this subsection more than 30 days after the corrected tax
bill is issued is liable for the penalties and interest imposed
under subsection (3).
(5) Except as otherwise provided in this section, the
treasurer of the local tax collecting unit or the county treasurer
shall disburse the payments of interest received to this state and
to a city, township, village, school district, county, and
authority, in the same proportion as required for the disbursement
of taxes collected under this act. The amount to be disbursed to a
local school district, except for that amount of interest
attributable to mills levied under section 1211(2) or 1211c of the
revised school code, 1976 PA 451, MCL 380.1211 and 380.1211c, and
mills that are not included as mills levied for school operating
purposes under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, shall be paid to the state treasury and credited
to the state school aid fund established by section 11 of article
IX of the state constitution of 1963. For an intermediate school
district receiving state aid under section 56, 62, or 81 of the
state school aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662,
and 388.1681, of the interest that would otherwise be disbursed to
or retained by the intermediate school district, all or a portion,
to be determined on the basis of the tax rates being utilized to
compute the amount of the state school aid, shall be paid instead
to the state treasury and credited to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
(6) If an assessment change made under this section results in
a decreased tax liability, a refund of excess tax payments shall be
made by the county treasurer and shall include interest at the rate
of 1% per month or fraction of a month for taxes levied before
January 1, 1997 and interest at the rate provided under section 37
of the tax tribunal act, 1973 PA 186, MCL 205.737, for taxes levied
after December 31, 1996, from the date of the payment of the tax to
the date of the payment of the refund. The county treasurer shall
charge a refund of excess tax payments under this subsection to the
various taxing jurisdictions in the same proportion as the taxes
levied.
(7) A person to whom property is assessed under this section
may appeal the state tax commission's order to the Michigan tax
tribunal.
(8) The name and address of a business or individual being
audited under this act is not subject to disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. An
employee, former employee, authorized representative, or former
authorized representative of a local tax collecting unit or of this
state shall not disclose the name or address of a business or
individual being audited under this act. An employee, former
employee, authorized representative, or former authorized
representative of a local tax collecting unit or of this state may
disclose the name or address of a business or individual being
audited under this act if the disclosure is necessary for the
proper administration of this act or another act administered by
the department of treasury or if required by court order. As used
in this subsection, "authorized representative" means a person,
corporation, nonprofit corporation, partnership, limited liability
company, or other entity selected by a local tax collecting unit or
this state to perform audits under this act on behalf of the local
tax collecting unit or this state.