HB-6049, As Passed House, December 20, 2018

HB-6049, As Passed Senate, December 19, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 6049

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 10d, 10e, and 28 (MCL 211.10d, 211.10e, and

211.28), section 10d as amended by 1984 PA 19, section 10e as added

by 1986 PA 223, and section 28 as amended by 2006 PA 143, and by

adding section 10g.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 10d. (1) The annual assessment of property shall be made

by an assessor who has been certified as qualified by the board

state tax commission as having successfully completed training in a

school of assessment practices or by the passage of a test approved

by the board state tax commission and conducted by the board state

tax commission or an agency approved by the board state tax

commission that will enable the person individual to properly

discharge the functions of the office. The school shall be

established by an approved educational institution in conjunction

with the board state tax commission and be supervised by the board

state tax commission and its agents and employees. The board state

tax commission may determine that a director of an a county tax or

equalization department or an assessor , who has not received the

training , possesses the necessary qualifications for performing

the functions of the office by the passage of an approved

examination.

     (2) The board state tax commission may also grant a

conditional 6-month certification to a newly elected assessing

officer or an assessing officer appointed to fill an unexpired term

if all of the following criteria are met:

     (a) The newly elected or appointed assessing officer makes an

application applies for certification with payment of and pays the

required filing fee.

     (b) The governing body of the local assessing unit district

requests the board state tax commission to conditionally certify

the newly elected or appointed assessing officer.

     (c) The newly elected or appointed assessing officer or the

governing body of the assessing district submits a statement

outlining the course of training he or she plans to pursue.

     (d) The period of time for which the conditional certification

is requested does not exceed 6 months after the date that he or she

assumes office.

     (3) Conditional certification under subsection (2) shall not

be granted for any assessment unit assessing district more than

once in 4 years.

     (4) Conditional certification under subsection (2) shall only

be granted to a newly elected or appointed assessing officer in an

assessment unit which assessing district that does not exceed a

total state equalized valuation of $125,000,000.00.

     (5) Upon presentation of evidence of the successful completion

of the qualifications, the assessor shall be certified as qualified

by the board.state tax commission.

     (6) A local An assessing district which that does not have an

assessor qualified by certification of the board state tax

commission may employ an assessor so qualified. If a local an

assessing district does not have an assessor qualified by

certification of the board, state tax commission, and has not

employed a certified assessor, the assessment shall be made by the

county tax or equalization department or the state tax commission

and the cost of preparing the rolls shall be charged to the local

assessing district.

     (7) Every lawful assessment roll shall have a certificate

attached signed by the certified assessor who prepared or

supervised the preparation of the roll. The A village that is

located in more than 1 assessing district may, in a form and manner

prescribed by the state tax commission, request state tax

commission approval that the assessment of property within the

village be combined with the assessment of property in 1 of those

assessing districts. A certificate attached to an assessment roll

pursuant to this subsection shall be in the form prescribed by the

state tax commission. If after completing the assessment roll the

certified assessor for the local assessing district dies or

otherwise becomes incapable of certifying the assessment roll, the

director of the county tax or equalization director department or

the state tax commission shall certify the completed assessment

roll at no cost to the local assessing district.

     (8) The local assessing district shall assume the cost of

training, if a certification is awarded, to the extent of course

fees and recognized travel expenditures.

     (9) An assessor who certifies an assessment roll in over which

he or she did not have direct supervision is guilty of a

misdemeanor.

     (10) The board state tax commission shall promulgate rules for

the issuance or revocation of certification.

     (11) The director of a county tax or equalization department

required by section 34 of this act shall be certified by the board

state tax commission at the level determined to be necessary by the

board state tax commission before being appointed by the county

board of commissioners pursuant to section 34 or before performing

or, after the effective date of this subsection, March 29, 1985,

continuing to perform, the functions of the director of a county

tax or equalization department. The board state tax commission may

grant a conditional extension of 12 months to a person an

individual who is serving as the director of a county tax or

equalization department on the effective date of this subsection

March 29, 1985 if all of the following conditions are satisfied:

     (a) At the time of making application applying for

certification the person individual is currently certified at not

less than 1 level below the level required by the board state tax

commission for that county.

     (b) The person makes application individual applies for

certification with payment of and pays the required fee.

     (c) The county board of commissioners requests the board state

tax commission to grant the extension.

     (d) The person individual submits a statement to the board

state tax commission outlining the course of study he or she

intends to pursue to obtain certification.

(12) The board state tax commission may grant an additional 6-

month extension to the conditional extension described in

subsection (11) if the extension is requested by the county board

of commissioners and the applicant demonstrates satisfactory

progress in the course of study outlined to the board state tax

commission under this subsection (11). In a county in which a

vacancy has been created in the position of director of a county

tax or equalization department and in which the position was

previously filled by a person an individual certified at the level

required by the board state tax commission pursuant to this

subsection, a person an individual certified at 1 level below the

level required by the board state tax commission pursuant to this

subsection may serve in the position for 12 months after the

vacancy has been created.

     Sec. 10e. All assessing officials , whose duty it is to assess

real or personal property on which real or personal property taxes

are levied by any taxing unit of the state , shall use only the

official assessor's manual or any a manual approved by the state

tax commission , consistent with the official assessor's manual,

with their latest supplements, as prepared or approved by the state

tax commission as a guide in preparing assessments. Beginning with

the tax assessing year 1978, all assessing officials shall maintain

records relevant to the assessments, including appraisal record

cards, personal property records, historical assessment data, tax

maps, and, through calendar year 2018, land value maps, consistent

with standards set forth in the assessor's manual published by the

state tax commission.

     Sec. 10g. (1) Pursuant to subsection (2), on and after

December 31, 2021, the state tax commission shall audit the

assessing districts in this state to determine if they do all of

the following:

     (a) Employ or contract with an assessor of record that

oversees and administers an annual assessment of all property

liable to taxation in the assessing district, as provided in

section 10, in accordance with the constitution and laws of this

state. For an assessing district that amends its corrective action

plan pursuant to subsection (3)(c), its assessor of record must be

an advanced assessing officer or a master assessing officer.

     (b) Use a computer-assisted mass appraisal system that is

approved by the state tax commission as having sufficient software

capabilities to meet the requirements of this act and to store and

back up necessary data.

     (c) Subject to state tax commission guidelines, have and

follow a published policy under which its assessor's office is

reasonably accessible to taxpayers. A policy under this subdivision

must include, at a minimum, the items in subparagraphs (i) to (iv)

and should include the item in subparagraph (v) as follows:

     (i) A designation, by name, telephone number, and electronic

mail address, of at least 1 official or employee in the assessor's

office to whom taxpayer inquiries may be submitted directly by

telephone or electronic mail.

     (ii) An estimated response time for taxpayer inquiries

submitted under subparagraph (i), not to exceed 7 business days.

     (iii) Information about how a taxpayer may arrange a meeting

with an official or employee of the assessor's office for purposes

of discussing an inquiry in person.

     (iv) Information about how requests for inspection or

production of records maintained by the assessor's office should be

made by a taxpayer and how those requests will be handled by the

assessor's office.

     (v) Information about any process that the assessor's office

may have to informally hear and resolve disputes brought by

taxpayers before the March meeting of the board of review.

     (d) If a city or township building within the assessing

district is in an area with broadband internet access, provide

taxpayers online access to information regarding its assessment

services, including, but not limited to, parcel information, land

value studies and documentation, and economic condition factors. As

used in this subdivision, "area with broadband internet access"

means an area determined by the connect Michigan broadband service

industry survey to be served by fixed terrestrial service with

advertised speeds of at least 25 megabits per second downstream and

3 megabits per second upstream in the most recent survey available.

     (e) Include the contact information described in subdivision

(c)(i) in notices to taxpayers concerning assessment changes and

exemption determinations, including, but not limited to, notices

issued under section 24c.

     (f) Ensure that its support staff is sufficiently trained to

respond to taxpayer inquiries, require that its assessors maintain

their certification levels, and require that its board of review

members receive board of review training and updates required and

approved by the state tax commission.

     (g) Comply with section 44(4) with respect to any property tax

administration fee collected under section 44.

     (h) Have all of the following:

     (i) Properly developed and documented land values.

     (ii) An assessment database for which not more than 1% of

parcels are in override.

     (iii) Properly developed and documented economic condition

factors.

     (iv) An annual personal property canvass and sufficient

personal property records according to developed policy and

statutory requirements.

     (v) A board of review that operates in accordance with this

act.

     (vi) An adequate process for determining whether to grant or

deny exemptions according to statutory requirements.

     (vii) An adequate process for meeting the requirements outlined

in the state tax commission's publication entitled, "Supervising

Preparation of the Assessment Roll", as those requirements existed

on October 1, 2018.

     (i) Comply with any other requirement that the state tax

commission lawfully promulgates under the administrative procedures

act of 1969, 1969 PA 306, MCL 24.201 to 24.328, in the exercise of

its authority under this act that expressly states that it is

intended as an additional requirement under this subsection.

     (2) The state tax commission shall develop and implement an

audit program to determine whether an assessing district is in

substantial compliance with the requirements in subsection (1). If,

after December 31, 2021, the state tax commission determines that

an assessing district is not in substantial compliance with the

requirements in subsection (1), the state tax commission may

initiate the process described in subsection (3) to ensure that the

assessing district achieves and maintains substantial compliance

with those requirements.

     (3) The state tax commission shall develop and implement a

process to ensure that all assessing districts in the state achieve

and maintain substantial compliance with the requirements in

subsection (1). At a minimum, that process shall include all of the

following actions and procedures:

     (a) If the state tax commission determines that an assessing

district is not in substantial compliance with the requirements in

subsection (1) and elects to initiate the process described in this

subsection, the commission shall provide the assessing district

with a notice of noncompliance setting forth the reasons the

assessing district is not in substantial compliance with the

requirements in subsection (1) and requesting that the assessing

district develop a corrective action plan approved by its governing

body to address those deficiencies. Except as otherwise provided in

subdivision (g), an assessing district shall file a corrective

action plan requested under this subdivision with the state tax

commission within 60 days after receipt of the notice of

noncompliance. The state tax commission shall approve a corrective

action plan filed under this subdivision or request changes to the

plan within 60 days after filing.

     (b) No earlier than May 1 and no later than September 1 of the

calendar year immediately following the year of the notice

described in subdivision (a), or, in the case of a corrective

action plan approved by the state tax commission that extends

beyond 1 year, no earlier than May 1 and no later than September 1

of the calendar year that is the second calendar year following the

year of the notice described in subdivision (a), the state tax

commission shall conduct an initial follow-up review with the

assessing district and, within 90 days following that review,

provide the district with an evaluation of its progress in

implementing its corrective action plan and a notice of substantial

compliance or noncompliance with the requirements in subsection

(1).

     (c) Except as otherwise provided in subdivisions (g) and (i),

an assessing district that has received a notice of noncompliance

as part of an initial follow-up review under subdivision (b) shall

elect to either contract with the designated assessor for the

county to serve as the district's assessor of record or amend its

corrective action plan with the approval of the state tax

commission to provide that the assessing district will employ or

contract with a new assessor of record, who shall be an advanced

assessing officer or a master assessing officer, to achieve and

maintain substantial compliance with the requirements in subsection

(1).

     (d) If an assessing district amends its corrective action plan

pursuant to subdivision (c), no earlier than May 1 and no later

than September 1 of the following calendar year, the state tax

commission shall conduct a second follow-up review with the

assessing district and, within 90 days following that review,

provide the district with an evaluation of its progress in

implementing its corrective action plan and a notice of substantial

compliance or noncompliance with the requirements in subsection

(1).

     (e) If the state tax commission, pursuant to subdivision (b)

or (d), provides an assessing district a notice of substantial

compliance with the requirements in subsection (1), no further

follow-up reviews are required under this subsection.

     (f) Except as otherwise provided in subdivision (g), if the

state tax commission provides an assessing district a notice of

noncompliance pursuant to a second follow-up review under

subdivision (d) or notifies an assessing district that it has

fallen out of substantial compliance less than 5 calendar years

after the calendar year a notice of substantial compliance was

issued under this subsection, the state tax commission may require

the assessing district to contract with the designated assessor for

the county to serve as the district's assessor of record. If the

state tax commission notifies an assessing district that it has

fallen out of substantial compliance with the requirements in

subsection (1) more than 4 calendar years after the calendar year a

notice of substantial compliance was issued, that notice of

noncompliance shall be treated as an initial determination of

noncompliance under this subsection.

     (g) Within 30 days after receiving a notice of noncompliance

under subdivisions (a), (b), (d), or (f), an assessing district may

file a written petition with the state tax commission challenging

the determination. The state tax commission shall arbitrate the

dispute based on the documented facts supporting the notice of

noncompliance and the information contained in the written petition

and may request additional information as needed from the assessing

district. If a petition is properly filed under this subdivision,

the requirements applicable to an assessing district under

subdivisions (a), (c), and (f) do not apply until the state tax

commission notifies the assessing district of the results of the

arbitration. With respect to the corrective action plan filing

requirement in subdivision (a), the 60-day window for filing the

plan will run from the date of this notice.

     (h) Unless earlier times are agreed to by the state tax

commission and the designated assessor, an assessing district that

is under contract with a designated assessor under this subsection

may petition the state tax commission no sooner than 3 years after

commencement of the contract to end its contract with the

designated assessor and may subsequently terminate the contract,

subject to state tax commission approval, no sooner than 5 years

after commencement of the contract. The state tax commission shall

approve termination of a contract under this subdivision if it

determines that the assessing district can achieve and maintain

substantial compliance with the requirements in subsection (1)

using a different assessor of record.

     (i) Notwithstanding any other provision of this subsection,

the state tax commission may immediately require an assessing

district to contract with the designated assessor for the county to

serve as the district's assessor of record if after the expiration

of 90 days following a second notice of noncompliance under

subdivision (b) or the issuance of a notice of arbitration results

under subdivision (g), whichever is later, the assessing district

has not either contracted with the designated assessor for the

county or employed or contracted with a new assessor of record

pursuant to subdivision (c) or if both of the following apply:

     (i) The assessing district has failed to file an acceptable

corrective action plan with the state tax commission under

subdivision (a) within 180 days following an initial notice of

noncompliance under subdivision (a) or has failed to make a good-

faith effort to implement a corrective action plan approved by the

state tax commission under subdivision (a) within 240 days

following an initial notice of noncompliance under subdivision (a).

     (ii) The failure is likely to result in assumption of the

assessing district's assessment roll.

     (j) A designated assessor may charge an assessing district

that is required to contract with the designated assessor under

this subsection, and that assessing district shall pay, for the

reasonable costs incurred by the designated assessor in serving as

the assessing district's assessor of record, including, but not

limited to, the costs of overseeing and administering the annual

assessment, preparing and defending the assessment roll, and

operating the assessing office. The state tax commission shall

develop guidelines, which, at a minimum, shall provide for the

ability of an assessing district to protest a charge to the state

tax commission and the ability of the state tax commission to

resolve disputes between the designated assessor and the assessing

district regarding costs and charges.

     (k) A designated assessor is a local assessing unit for

purposes of the provisions in section 44 concerning the division

and use of any collected property tax administration fees.

     (4) Beginning December 31, 2020, every county shall have a

designated assessor on file with the state tax commission, subject

to all of the following:

     (a) Subject to subdivision (d), to designate an assessor as a

designated assessor, a county shall provide the state tax

commission with an interlocal agreement that designates an

individual who will serve as the county's designated assessor and

shall petition the state tax commission to approve of the

individual as the designated assessor for that county. The

interlocal agreement must be executed by the board of commissioners

for that county, a majority of the assessing districts in that

county, and the individual put forth as the proposed designated

assessor. For purposes of this subdivision and subsection (5)(d),

an assessing district is considered to be in the county where all

of, or in the case of an assessing district that has state

equalized value in multiple counties, the largest share of, that

assessing district's state equalized value is located.

     (b) Except as otherwise provided in subdivision (d), if the

state tax commission determines that an individual named in a

petition submitted under subdivision (a) is capable of ensuring

that contracting assessing districts achieve and maintain

substantial compliance with the requirements in subsection (1), it

shall approve the petition.

     (c) Except as otherwise provided in subdivision (d), if the

state tax commission determines that an individual named in a

petition submitted under subdivision (a) is not capable of ensuring

that contracting assessing districts achieve and maintain

substantial compliance with the requirements in subsection (1), it

shall reject the petition and request the submission of additional

interlocal agreements under subdivision (a) until a suitable

assessor has been presented.

     (d) Except as otherwise provided in subdivision (e), an

approved designated assessor designation shall not be revoked and

no new designation shall be made under subdivision (a) earlier than

5 years following the date of the approved designation.

     (e) The state tax commission may designate and approve, on an

interim basis and pursuant to a formal agreement, an individual to

serve as a county's designated assessor and, if applicable, revoke

the approved designation of the current designated assessor under

the following circumstances and subject to the following time

limit:

     (i) If the designated assessor dies or becomes incapacitated.

     (ii) If the designated assessor was designated and approved

based on his or her employment status and that status materially

changes.

     (iii) If it determines at any time that the designated assessor

is not capable of ensuring that contracting assessing districts

achieve and maintain substantial compliance with the requirements

in subsection (1).

     (iv) If, as of December 31, 2020, it has not been provided an

interlocal agreement, executed as provided in subdivision (a), that

presents a suitable individual to serve as the county's designated

assessor.

     (v) An approved designation under this subdivision is

effective only until a new assessor has been designated and

approved under subdivisions (a) to (c).

     (5) As used in this section:

     (a) "Advanced assessing officer" means an individual certified

by the state tax commission pursuant to section 10d as a Michigan

Advanced Assessing Officer(3) or, if the state tax commission

changes its certification designations, an individual certified by

the state tax commission to perform functions equivalent in scope,

as determined by the state tax commission, to those that previously

could have been performed by a Michigan Advanced Assessing

Officer(3).

     (b) "Assessing district" means a city, township, or joint

assessing authority.

     (c) "Corrective action plan" means a plan developed by an

assessing district that specifically indicates how the assessing

district will achieve substantial compliance with the requirements

in subsection (1) and when substantial compliance will be achieved.

     (d) "Designated assessor" means an individual designated and

approved, as provided in subsection (4), to serve a county as the

assessor of record for the assessing districts in that county that

are required to contract with a designated assessor pursuant to the

process specified in subsection (3).

     (e) "Master assessing officer" means an individual certified

by the state tax commission pursuant to section 10d as a Michigan

Master Assessing Officer(4) or, if the state tax commission changes

its certification designations, an individual certified by the

state tax commission to perform functions equivalent in scope, as

determined by the state tax commission, to those that previously

could have been performed by a Michigan Master Assessing

Officer(4).

     (f) "Noncompliance" means that the identified deficiencies,

taken together, pose a significant risk that the assessing district

is unable to perform the assessing function in conformity with the

state constitution and state statute. It is the opposite of

substantial compliance and shall be determined based on a holistic

evaluation of compliance with the requirements in subsection (1),

taking into account the anticipated overall impact of the

deficiencies on the assessing district's ability to perform the

assessment function. A finding of noncompliance shall not be based

on isolated technical deficiencies.

     (g) "Substantial compliance" means that any identified

deficiencies do not pose a significant risk that the assessing

district is unable to perform the assessment function in conformity

with the state constitution and state statute. It is the opposite

of noncompliance.

     (6) Not later than 2 years after the effective date of the

amendatory act that added this section, the state tax commission

shall adopt and publish guidelines to implement this section. The

guidelines shall include, at a minimum, minimum standards and model

policies to be followed for substantial compliance with the

requirements of subsection (1) and shall identify those

deficiencies that may lead to a finding of noncompliance and those

deficiencies that are technical. The state tax commission may

update the guidelines as needed to implement this section.

     Sec. 28. (1) Those The township board shall appoint those

electors of the township appointed by the township board shall who

will constitute a board of review for the township. At least 2/3 of

the members shall must be property taxpayers of the township.

Members appointed to the board of review shall serve for terms of 2

years beginning at noon on January 1 of each odd-numbered year.

Each member of the board of review shall qualify by taking the

constitutional oath of office within 10 days after appointment. The

township board may fill any vacancy that occurs in the membership

of the board of review. A member of the township board is not

eligible to serve on the board or to fill any vacancy. A spouse,

mother, father, sister, brother, son, or daughter, including an

adopted child, of the assessor is not eligible to serve on the

board or to fill any vacancy. A majority of the board of review

constitutes a quorum for the transaction of business, but a lesser

number may adjourn and a majority vote of those present shall will

decide all questions. At least 2 members of a 3-member board of

review shall be present to conduct any business or hearings of the

board of review.

     (2) The township board may appoint 3, 6, or 9 electors of the

township, who shall will constitute a board of review for the

township. If 6 or 9 members are appointed as provided in this

subsection, the membership of the board of review shall must be

divided into board of review committees consisting of 3 members

each for the purpose of hearing and deciding issues protested

pursuant to section 30. Two of the 3 members of a board of review

committee constitute a quorum for the transaction of the business

of the committee. All meetings of the members of the board of

review and committees shall must be held during the same hours of

the same day and at the same location.

     (3) A township board may appoint not more than 2 alternate

members for the same term as regular members of the board of

review. Each alternate member shall must be a property taxpayer of

the township. Alternate members shall qualify by taking the

constitutional oath of office within 10 days after appointment. The

township board may fill any vacancy that occurs in the alternate

membership of the board of review. A member of the township board

is not eligible to serve as an alternate member or to fill any

vacancy. A spouse, mother, father, sister, brother, son, or

daughter, including an adopted child, of the assessor is not

eligible to serve as an alternate member or to fill any vacancy. An

alternate member may be called to perform the duties of a regular

member of the board of review in the absence of a regular member.

An alternate member may also be called to perform the duties of a

regular member of the board of review for the purpose of reaching a

decision in issues protested in which a regular member has

abstained for reasons of conflict of interest.

     (4) The size, composition, and manner of appointment of the

board of review of a city may be prescribed by the charter of a

city. In the absence of or in place of a charter provision, the

governing body of the city, by ordinance, may establish the city

board of review in the same manner and for the same purposes as

provided by this section for townships.

     (5) A majority of the entire board of review membership shall

indorse the assessment roll as provided in section 30. The duties

and responsibilities of the board contained in section 29 shall be

carried out by the entire membership of the board of review and a

majority of the membership constitutes a quorum for those purposes.

     (6) The governing bodies of 2 or more contiguous cities or

townships may, by agreement, appoint a single board of review to

serve as the board of review for each of those cities or townships

for purposes of this act. The provisions in subsections (1) to (5)

should serve as a guide in determining the size, composition, and

manner of appointment of a board of review appointed under this

subsection.

     Enacting section 1. It is the intent of the legislature to

appropriate sufficient money to address start-up and training costs

associated with this amendatory act, including, but not limited to,

necessary costs incurred to train board of review members, increase

the number of assessors qualified to serve as assessors of record,

facilitate initial designated assessor designations, respond to

assessor requests for technical assistance, enhance staff and

programming within the state tax commission to improve technical

support for assessors of record, and transition some assessment

services to designated assessors.