Bill Text: MI HB4214 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Property tax: personal property; small business personal property tax exemption; modify. Amends secs. 9o, 30 & 53b of 1893 PA 206 (MCL 211.9o et seq.).

Spectrum: Slight Partisan Bill (Republican 17-6)

Status: (Introduced - Dead) 2019-02-19 - Bill Electronically Reproduced 02/19/2019 [HB4214 Detail]

Download: Michigan-2019-HB4214-Introduced.html

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HOUSE BILL No. 4214

 

 

February 19, 2019, Introduced by Reps. Leutheuser, Farrington, Maddock, Kahle, Webber, Bollin, Eisen, Berman, Inman, Paquette, Slagh, Wozniak, Markkanen, Bellino, Rendon, Cherry, Lasinski, Chirkun, LaGrand, Brann, Hoadley, Miller and Cambensy and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 9o, 30, and 53b (MCL 211.9o, 211.30, and

 

211.53b), section 9o as amended by 2018 PA 132, section 30 as

 

amended by 2013 PA 153, and section 53b as amended by 2017 PA 261.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9o. (1) Beginning December 31, 2013, eligible personal

 

property for which an exemption has been properly claimed under

 

this section is exempt from the collection of taxes under this act.

 

     (2) An Subject to subsection (8), an owner of eligible

 

personal property shall claim the exemption under this section by

 

filing a statement with the local tax collecting unit in which the

 

eligible personal property is located not later than February 20 of

 

the first year the exemption is claimed or, if February 20 of the

 

first year the exemption is claimed is a Saturday, Sunday, or legal

 

holiday, not later than the next day that is not a Saturday,

 

Sunday, or legal holiday. For purposes of a statement delivered by

 

the United States Postal Service, the filing is timely if the

 

postmark date is on or before the filing deadline prescribed in

 

this subsection. If the statement is not timely filed with the

 

local tax collecting unit, a late submission may be filed directly

 

with the March or July board of review before its the final

 

adjournment of its July meeting by submitting the statement

 

prescribed in this subsection. The board of review shall not accept

 

a filing after adjournment of its March July meeting. An appeal of

 

a denial by the March or July board of review may be made by filing

 

a petition with the Michigan tax tribunal within 35 days of the

 

denial notice. A statement filed under this subsection shall must

 

be in a form prescribed by the state tax commission and shall must

 

include any address where any property owned by, leased to, or in

 

the possession of that owner or a related entity is located within

 

that local tax collecting unit. The In the statement, the owner

 

shall require the owner to attest that the combined true cash value

 

of all industrial personal property and commercial personal

 

property in that local tax collecting unit owned by, leased to, or

 

in the possession of that owner or a related entity on December 31

 

of the immediately preceding year is less than $80,000.00.

 

     (3) If a statement claiming the exemption under this section

 

is filed as provided in subsection (2), the owner of that eligible

 

personal property is not required to file a statement under section

 

19.

     (4) A person who claims an exemption for eligible personal

 

property under this section shall maintain books and records and

 

shall provide access to those books and records as provided in

 

section 22. A local unit of government may develop and implement an

 

audit program that includes, but is not limited to, the audit of

 

all information submitted under subsection (2) for the current

 

calendar year and the 3 calendar years immediately preceding the

 

commencement of an audit. Any assessment as a result of an audit

 

must be paid in full within 35 days of issuance and must include

 

interest as described in subsection (5).

 

     (5) An exemption granted under this section remains in effect

 

until the personal property is no longer eligible personal

 

property. An owner whose personal property is no longer eligible

 

personal property shall file by February 20 of the year that the

 

property is no longer eligible a rescission and the statement

 

required under section 19. The rescission shall be filed on a form

 

prescribed by the department of treasury. Upon receipt of a

 

rescission form, the local assessor shall immediately remove the

 

exemption. An owner who fails to file a rescission and whose

 

property is later determined to be ineligible for the exemption

 

will be subject to repayment of any additional taxes with interest

 

as described in this subsection. Upon discovery that the property

 

is no longer eligible personal property, the assessor shall remove

 

the exemption of that personal property and, if the tax roll is in

 

the local tax collecting unit's possession, amend the tax roll to

 

reflect the removal of the exemption, and the local treasurer shall

 

within 30 days of the date of the discovery issue a corrected tax

bill for any additional taxes with interest at the rate of 1% per

 

month or fraction of a month and penalties computed from the date

 

the taxes were last payable without interest or penalty. If the tax

 

roll is in the county treasurer's possession, the tax roll shall be

 

amended to reflect the removal of the exemption and the county

 

treasurer shall within 30 days of the date of the removal prepare

 

and submit a supplemental tax bill for any additional taxes,

 

together with interest at the rate of 1% per month or fraction of a

 

month and penalties computed from the date the taxes were last

 

payable without interest or penalty. Interest on any tax set forth

 

in a corrected or supplemental tax bill again begins to accrue 60

 

days after the date the corrected or supplemental tax bill is

 

issued at the rate of 1% per month or fraction of a month. Taxes

 

levied in a corrected or supplemental tax bill shall be returned as

 

delinquent on the March 1 in the year immediately succeeding the

 

year in which the corrected or supplemental tax bill is issued.

 

     (6) If the assessor of the local tax collecting unit believes

 

that personal property for which a statement claiming an exemption

 

is timely and properly filed under subsection (2) is not eligible

 

personal property, the assessor may deny that claim for exemption

 

by notifying the person that filed the statement in writing of the

 

reason for the denial and advising the person that the denial may

 

be appealed to the board of review under section 30 or 53b during

 

that tax year.

 

     (7) If a person fraudulently claims an exemption for personal

 

property under this section, that person is subject to the

 

penalties provided for in section 21(2).

     (8) If an owner of eligible personal property does not timely

 

file a statement pursuant to subsection (2) for the first year that

 

the property was eligible for the exemption under this section,

 

that owner may file an appeal with the March or July board of

 

review in the immediately succeeding year to claim the exemption

 

for that first year of eligibility. This extension is available

 

only to an owner of eligible personal property who missed the

 

filing deadline for the first year that the property was eligible

 

for the exemption under this section.

 

     (9) (8) As used in this section:

 

     (a) "Commercial personal property" means personal property

 

that is classified as commercial personal property under section

 

34c or would be classified as commercial personal property under

 

section 34c if not exempt from the collection of taxes under this

 

act under this section or section 9m or 9n.

 

     (b) "Control", "controlled by", and "under common control

 

with" mean the possession of the power to direct or cause the

 

direction of the management and policies of a related entity,

 

directly or indirectly, whether derived from a management position,

 

official office, or corporate office held by an individual; by an

 

ownership interest, beneficial interest, or equitable interest; or

 

by contractual agreement or other similar arrangement. There is a

 

rebuttable presumption that control exists if any person, directly

 

or indirectly, owns, controls, or holds the power to vote, directly

 

or by proxy, 10% or more of the ownership interest of any other

 

person or has contributed more than 10% of the capital of the other

 

person. Indirect ownership includes ownership through attribution

or through 1 or more intermediary entities.

 

     (c) "Eligible personal property" means property that meets all

 

of the following conditions:

 

     (i) Is industrial personal property or commercial personal

 

property.

 

     (ii) The combined true cash value of all industrial personal

 

property and commercial personal property in that local tax

 

collecting unit owned by, leased to, or in the possession of the

 

person claiming an exemption under this section or a related entity

 

on December 31 of the immediately preceding year is less than

 

$80,000.00.

 

     (iii) Is not leased to or used by a person that previously

 

owned the property or a person that, directly or indirectly,

 

controls, is controlled by, or is under common control with the

 

person that previously owned the property.

 

     (d) "Industrial personal property" means personal property

 

that is classified as industrial personal property under section

 

34c or would be classified as industrial personal property under

 

section 34c if not exempt from the collection of taxes under this

 

act under this section or section 9m or 9n.

 

     (e) "Person" means an individual, partnership, corporation,

 

association, limited liability company, or any other legal entity.

 

     (f) "Related entity" means a person that, directly or

 

indirectly, controls, is controlled by, or is under common control

 

with the person claiming an exemption under this section.

 

     Sec. 30. (1) Except as otherwise provided in subsection (2),

 

the board of review shall meet on the second Monday in March.

     (2) The governing body of the city or township may authorize,

 

by adoption of an ordinance or resolution, alternative starting

 

dates in March when the board of review shall initially meet, which

 

alternative starting dates shall must be the Tuesday or Wednesday

 

following the second Monday of March.

 

     (3) The first meeting of the board of review shall must start

 

not earlier than 9 a.m. and not later than 3 p.m. and last for not

 

less than at least 6 hours. The board of review shall also meet for

 

not less than at least 6 hours during the remainder of that week.

 

Persons or their agents who have appeared to file a protest before

 

the board of review at a scheduled meeting or at a scheduled

 

appointment shall be afforded an opportunity to be heard by the

 

board of review. The board of review shall schedule a final meeting

 

after the board of review makes a change in the assessed value or

 

tentative taxable value of property, adds property to the

 

assessment roll, or exempts personal property under section 9m, 9n,

 

or 9o and removes it from the assessment roll. The board of review

 

shall hold at least 3 hours of its required sessions for review of

 

assessment rolls during the week of the second Monday in March

 

after 6 p.m.

 

     (4) A board of review shall meet a total of at least 12 hours

 

during the week beginning the second Monday in March to hear

 

protests. At the request of a person whose property is assessed on

 

the assessment roll or of his or her agent, and if sufficient cause

 

is shown, the board of review shall correct the assessed value or

 

tentative taxable value of the property in a manner that will make

 

the valuation of the property relatively just and proper under this

act. For the appeal of a denial of a claim of exemption for

 

personal property under section 9m, 9n, or 9o, or for including an

 

appeal under section 9o(7), 9o(6) or (8), if an exemption is

 

approved, the board of review shall remove the personal property

 

from the assessment roll. The board of review may examine under

 

oath the person making the application, or any other person

 

concerning the matter. A member of the board of review may

 

administer the oath. A nonresident taxpayer may file his or her

 

appearance, protest, and papers in support of the protest by

 

letter, and his or her personal appearance is not required. The

 

board of review, on its own motion, may change assessed values or

 

tentative taxable values or add to the roll property omitted from

 

the roll that is liable to assessment if the person who is assessed

 

for the altered valuation or for the omitted property is promptly

 

notified and granted an opportunity to file objections to the

 

change at the meeting or at a subsequent meeting. An objection to a

 

change in assessed value or tentative taxable value or to the

 

addition of property to the tax roll shall be promptly heard and

 

determined. Each person who makes a request, protest, or

 

application to the board of review for the correction of the

 

assessed value or tentative taxable value of the person's property

 

or for the exemption of that person's personal property under

 

section 9m, 9n, or 9o shall be notified in writing, not later than

 

the first Monday in June, of the board of review's action on the

 

request, protest, or application, of the state equalized valuation

 

or tentative taxable value of the property, and of information

 

regarding the right of further appeal to the tax tribunal.

Information regarding the right of further appeal to the tax

 

tribunal shall must include, but is not limited to, a statement of

 

the right to appeal to the tax tribunal, the address of the tax

 

tribunal, and the final date for filing an appeal with the tax

 

tribunal.

 

     (5) If an exemption for personal property under section 9m,

 

9n, or 9o is approved, the board of review shall file an affidavit

 

with the proper officials involved in the assessment and collection

 

of taxes and all affected official records shall be corrected. If

 

the board of review does not approve an exemption under section 9m,

 

9n, or 9o, the person claiming the exemption for that personal

 

property may appeal that decision in writing to the Michigan tax

 

tribunal. A correction under this subsection that approves an

 

exemption under section 9o may be made for the year in which the

 

appeal was filed and the immediately preceding 3 tax years. A

 

correction under this subsection that approves an exemption under

 

section 9m or 9n may be made only for the year in which the appeal

 

was filed.

 

     (6) After the board of review completes the review of the

 

assessment roll, a majority of the board of review shall indorse

 

the roll and sign a statement to the effect that the roll is the

 

assessment roll for the year in which it has been prepared and

 

approved by the board of review.

 

     (7) The completed assessment roll shall be delivered by the

 

appropriate assessing officer to the county equalization director

 

not later than the tenth day after the adjournment of the board of

 

review, or the Wednesday following the first Monday in April,

whichever date occurs first.

 

     (8) The governing body of the township or city may authorize,

 

by adoption of an ordinance or resolution, a resident taxpayer to

 

file his or her protest before the board of review by letter

 

without a personal appearance by the taxpayer or his or her agent.

 

If that ordinance or resolution is adopted, the township or city

 

shall include a statement notifying taxpayers of this option in

 

each assessment notice under section 24c and on each notice or

 

publication of the meeting of the board of review.

 

     Sec. 53b. (1) If there has been a qualified error, the

 

qualified error shall be verified by the local assessing officer

 

and approved by the board of review. Except as otherwise provided

 

in subsection (7), the board of review shall meet for the purposes

 

of this section on Tuesday following the second Monday in December

 

and on Tuesday following the third Monday in July. If approved, the

 

board of review shall file an affidavit within 30 days relative to

 

the qualified error with the proper officials and all affected

 

official records shall be corrected. If the qualified error results

 

in an overpayment or underpayment, the rebate, including any

 

interest paid, shall be made to the taxpayer or the taxpayer shall

 

be notified and payment made within 30 days of the notice. A rebate

 

shall be without interest. The treasurer in possession of the

 

appropriate tax roll may deduct the rebate from the appropriate tax

 

collecting unit's subsequent distribution of taxes. The treasurer

 

in possession of the appropriate tax roll shall bill to the

 

appropriate tax collecting unit the tax collecting unit's share of

 

taxes rebated. Except as otherwise provided in subsection (6) and

section 27a(4), a correction under this subsection may be made for

 

the current year and the immediately preceding year only.

 

     (2) Action pursuant to subsection (1) may be initiated by the

 

taxpayer or the assessing officer.

 

     (3) The board of review meeting in July and December shall

 

meet only for the purpose described in subsection (1) and to for

 

the following:

 

     (a) To hear appeals provided for in sections 7u, 7cc, 7ee, and

 

7jj.

 

     (b) For the July meeting only, to hear appeals provided for in

 

section 9o. If an exemption under section 7u is approved, the board

 

of review shall file an affidavit with the proper officials

 

involved in the assessment and collection of taxes and all affected

 

official records shall be corrected. If an appeal under section

 

7cc, 7ee, or 7jj, or 9o results in a determination that an

 

overpayment has been made, the board of review shall file an

 

affidavit and a rebate shall be made at the times and in the manner

 

provided in subsection (1). Except as otherwise provided in

 

sections 7cc, 7ee, and 7jj, and 9o, a correction under this

 

subsection shall be made for the year in which the appeal is made

 

only. If the board of review approves an exemption or provides a

 

rebate for property under section 7cc, 7ee, or 7jj as provided in

 

this subsection, the board of review shall require the owner to

 

execute the affidavit provided for in section 7cc, 7ee, or 7jj and

 

shall forward a copy of any section 7cc affidavits to the

 

department of treasury.

 

     (4) If an exemption under section 7cc is approved by the board

of review under this section, the provisions of section 7cc apply.

 

If an exemption under section 7cc is not approved by the board of

 

review under this section, the owner may appeal that decision in

 

writing to the department of treasury within 35 days of the board

 

of review's denial and the appeal shall be conducted as provided in

 

section 7cc(8).

 

     (5) An owner or assessor may appeal a decision of the board of

 

review under this section regarding an exemption under section 7ee

 

or 7jj to the residential and small claims division of the Michigan

 

tax tribunal. An owner is not required to pay the amount of tax in

 

dispute in order to receive a final determination of the

 

residential and small claims division of the Michigan tax tribunal.

 

However, interest and penalties, if any, shall accrue and be

 

computed based on interest and penalties that would have accrued

 

from the date the taxes were originally levied as if there had not

 

been an exemption.

 

     (6) A correction under this section that approves a principal

 

residence exemption pursuant to section 7cc may be made for the

 

year in which the appeal was filed and the 3 immediately preceding

 

tax years.

 

     (7) For the appeal of a denial of a claim of exemption for

 

personal property under section 9o, if an exemption is approved,

 

the board of review shall remove the personal property from the

 

assessment roll.

 

     (8) If an exemption for personal property under section 9o is

 

approved, the board of review shall file a statement with the

 

proper officials involved in the assessment and collection of taxes

and all affected official records shall be corrected. If the board

 

of review does not approve an exemption under section 9o, the

 

person claiming the exemption for that personal property may appeal

 

that decision in writing to the Michigan tax tribunal.

 

     (9) (7) The governing body of the city or township may

 

authorize, by adoption of an ordinance or resolution, 1 or more of

 

the following alternative meeting dates for the purposes of this

 

section:

 

     (a) An alternative meeting date during the week of the second

 

Monday in December.

 

     (b) An alternative meeting date during the week of the third

 

Monday in July.

 

     (10) (8) As used in this section, "qualified error" means 1 or

 

more of the following:

 

     (a) A clerical error relative to the correct assessment

 

figures, the rate of taxation, or the mathematical computation

 

relating to the assessing of taxes.

 

     (b) A mutual mistake of fact.

 

     (c) An adjustment under section 27a(4) or an exemption under

 

section 7hh(3)(b).

 

     (d) An error of measurement or calculation of the physical

 

dimensions or components of the real property being assessed.

 

     (e) An error of omission or inclusion of a part of the real

 

property being assessed.

 

     (f) An error regarding the correct taxable status of the real

 

property being assessed.

 

     (g) An error made by the taxpayer in preparing the statement

of assessable personal property under section 19.

 

     (h) An error made in the denial of a claim of exemption for

 

personal property under section 9o.