February 19, 2019, Introduced by Reps. Farrington, Leutheuser, Kahle, Bollin, Webber, Eisen, Berman, Inman, Paquette, Wozniak, Markkanen, Bellino, Rendon, Lasinski, Chirkun, LaGrand, Brann, 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 section 9o (MCL 211.9o), as amended by 2018 PA 132.
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 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 board of review
before its final adjournment by submitting the statement prescribed
in this subsection. The board of review shall not accept a filing
after adjournment of its March meeting. An appeal of a denial by
the March 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.$100,000.00.
(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 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) 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.$100,000.00.
(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.
Enacting section 1. This amendatory act applies to taxes
levied after December 31, 2019.