TAX TRIBUNAL: INFORMAL CONFERENCE                                                H.B. 5220 (H-1):

                                                                                                      FLOOR SUMMARY

House Bill 5220 (Substitute H-1 as reported be the Committee of the Whole)

Sponsor:  Representative Marty Knollenberg

House Committee:  Tax Policy

Senate Committee:  Finance

CONTENT

The bill would amend the Tax Tribunal Act to allow a petitioner or a local tax collecting unit to request an informal settlement conference after a petition was filed in the Residential Property and Small Claims Division of the Tax Tribunal.  The bill would:

-- Require the request to be made before a hearing had been scheduled.

-- Require the party requesting an informal settlement conference to submit a written request to the other party and file a copy with the Small Claims Division.

-- Require the local tax collecting unit to hold an informal settlement conference within 60 days after a request was made.

-- Allow the petitioner to file a motion with the Small Claims Division for an order to compel an informal settlement conference if the local unit did not hold one as required, and require the local unit to conduct an informal settlement conference if the Small Claims Division issued the order.

-- Require the Small Claims Division to schedule an expedited default hearing if the local unit did not comply with an order to compel an informal settlement conference.

-- Require an informal settlement conference to be held telephonically or at the offices of the local unit.

-- Provide that the petitioner would not have to respond to a local unit's request for an informal conference or attend the conference; and the appeal would continue as provided in the Act if the petitioner did not respond or attend.

-- Allow the parties to enter into a stipulation for judgment at the conference, and require the stipulation to be filed with the Small Claims Division.

-- Require the Small Claims Division to determine whether the stipulation should be adopted as a final order.

-- Require the petitioner's appeal to proceed as provided in the Act if the parties did not agree to a stipulation for judgment or if the Division rejected a proposed stipulation.

These provisions would not apply to the denial of a claim for exemption of a principal residence under the General Property Tax Act.

Proposed MCL 205.762b                                               Legislative Analyst:  Suzanne Lowe

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  12-5-12                                                         Fiscal Analyst:  David Zin

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.