Bill Text: MI HB4233 | 2009-2010 | 95th Legislature | Introduced

Michigan House Bill 4233 (Prior Session Legislation)

Introduced

Bill Title: Property tax; assessments; property tax reform plan; provide for. Amends secs. 7cc, 24c, 27, 27a & 30 of 1893 PA 206 (MCL 211.7cc et seq.).

Spectrum: Partisan Bill (Republican 16-0)

Status: (Introduced - Dead) 2009-02-11 - Printed Bill Filed 02/11/2009 [HB4233 Detail]

Download: Michigan-2009-HB4233-Introduced.html

HOUSE BILL No. 4233

February 10, 2009, Introduced by Reps. Horn, Lund, McMillin, Walsh, Knollenberg, Caul, Crawford, Rogers, Meekhof, Hildenbrand, Rick Jones, Marleau, Kowall, Moss, Calley and Stamas and referred to the Committee on Tax Policy.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 7cc, 24c, 27, 27a, and 30 (MCL 211.7cc,

211.24c, 211.27, 211.27a, and 211.30), section 7cc as amended by

2008 PA 198, section 24c as amended by 2003 PA 247, section 27 as

amended by 2003 PA 274, section 27a as amended by 2006 PA 446, and

section 30 as amended by 2003 PA 194.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7cc. (1) A principal residence is exempt from the tax

levied by a local school district for school operating purposes to

the extent provided under section 1211 of the revised school code,

1976 PA 451, MCL 380.1211, if an owner of that principal residence

claims an exemption as provided in this section. Notwithstanding

the tax day provided in section 2, the status of property as a

principal residence shall be determined on the date an affidavit

claiming an exemption is filed under subsection (2).

(2) Except as otherwise provided in subsection (5), an owner

of property may claim 1 exemption under this section by filing an

affidavit ~~on or before May 1~~ with the local tax collecting unit in

which the property is located on or before May 1 for taxes levied

before January 1, 2009 or, for taxes levied after December 31,

2008, at any time after tax day in a tax year for that portion of

taxes levied in that tax year determined by multiplying the taxes

levied in that tax year by a fraction the numerator of which is the

number of days remaining from the date the affidavit is filed until

December 31 in that tax year and the denominator of which is the

number of days in that tax year. The affidavit shall state that the

property is owned and occupied as a principal residence by that

owner of the property on the date that the affidavit is signed. The

affidavit shall be on a form prescribed by the department of

treasury. One copy of the affidavit shall be retained by the owner,

1 copy shall be retained by the local tax collecting unit until any

appeal or audit period under this act has expired, and 1 copy shall

be forwarded to the department of treasury pursuant to subsection

(4), together with all information submitted under subsection (26)

for a cooperative housing corporation. The affidavit shall require

the owner claiming the exemption to indicate if that owner or that

owner's spouse has claimed another exemption on property in this

state that is not rescinded or a substantially similar exemption,

deduction, or credit on property in another state that is not

rescinded. If the affidavit requires an owner to include a social

security number, that owner's number is subject to the disclosure

restrictions in 1941 PA 122, MCL 205.1 to 205.31. If an owner of

property filed an affidavit for an exemption under this section

before January 1, 2004, that affidavit shall be considered the

affidavit required under this subsection for a principal residence

exemption and that exemption shall remain in effect until rescinded

as provided in this section.

(3) Except as otherwise provided in subsection (5), a husband

and wife who are required to file or who do file a joint Michigan

income tax return are entitled to not more than 1 exemption under

this section. For taxes levied after December 31, 2002, a person is

not entitled to an exemption under this section if any of the

following conditions occur:

(a) That person has claimed a substantially similar exemption,

deduction, or credit on property in another state that is not

rescinded.

(b) Subject to subdivision (a), that person or his or her

spouse owns property in a state other than this state for which

that person or his or her spouse claims an exemption, deduction, or

credit substantially similar to the exemption provided under this

section, unless that person and his or her spouse file separate

income tax returns.

return, except active duty military personnel stationed in this

state with his or her principal residence in this state.

(d) That person has filed an income tax return in a state

other than this state as a resident, except active duty military

personnel stationed in this state with his or her principal

residence in this state.

(e) That person has previously rescinded an exemption under

this section for the same property for which an exemption is now

claimed and there has not been a transfer of ownership of that

property after the previous exemption was rescinded, if either of

the following conditions is satisfied:

(i) That person has claimed an exemption under this section for

any other property for that tax year.

(ii) That person has rescinded an exemption under this section

on other property, which exemption remains in effect for that tax

year, and there has not been a transfer of ownership of that

property.

(4) Upon receipt of an affidavit filed under subsection (2)

and unless the claim is denied under this section, the assessor

shall exempt the property from the collection of the tax levied by

a local school district for school operating purposes to the extent

provided under section 1211 of the revised school code, 1976 PA

451, MCL 380.1211, as provided in subsection (1) until December 31

of the year in which the property is transferred or, except as

otherwise provided in subsection (5), is no longer a principal

residence as defined in section 7dd. The local tax collecting unit

shall forward copies of affidavits to the department of treasury

according to a schedule prescribed by the department of treasury.

(5) Not more than 90 days after exempted property is no longer

used as a principal residence by the owner claiming an exemption,

that owner shall rescind the claim of exemption by filing with the

local tax collecting unit a rescission form prescribed by the

department of treasury. However, if an owner is eligible for and

claims an exemption for that owner's current principal residence,

that owner may retain an exemption for not more than 3 tax years on

property previously exempt as his or her principal residence if

that property is not occupied, is for sale, is not leased, and is

not used for any business or commercial purpose by filing a

conditional rescission form prescribed by the department of

treasury on or before May 1 with the local tax collecting unit.

Property is eligible for a conditional rescission if that property

is available for lease and all other conditions under this

subsection are met. A copy of the conditional rescission form shall

be forwarded to the department of treasury according to a schedule

prescribed by the department of treasury. An owner who files a

conditional rescission form shall annually verify to the assessor

of the local tax collecting unit on or before December 31 that the

property for which the principal residence exemption is retained is

not occupied, is for sale, is not leased, and is not used for any

business or commercial purpose. If an owner does not annually

verify by December 31 that the property for which the principal

residence exemption is retained is not occupied, is for sale, is

not leased, and is not used for any business or commercial purpose,

the assessor of the local tax collecting unit shall deny the

principal residence exemption on that property. If property subject

to a conditional rescission is leased, the local tax collecting

unit shall deny that conditional rescission and that denial is

retroactive and is effective on December 31 of the year immediately

preceding the year in which the property subject to the conditional

rescission is leased. An owner who fails to file a rescission as

required by this subsection is subject to a penalty of $5.00 per

day for each separate failure beginning after the 90 days have

elapsed, up to a maximum of $200.00. This penalty shall be

collected under 1941 PA 122, MCL 205.1 to 205.31, and shall be

deposited in the state school aid fund established in section 11 of

article IX of the state constitution of 1963. This penalty may be

waived by the department of treasury.

(6) Except as otherwise provided in subsection (5), if the

assessor of the local tax collecting unit believes that the

property for which an exemption is claimed is not the principal

residence of the owner claiming the exemption, the assessor may

deny a new or existing claim by notifying the owner and the

department of treasury in writing of the reason for the denial and

advising the owner that the denial may be appealed to the

residential and small claims division of the Michigan tax tribunal

within 35 days after the date of the notice. The assessor may deny

a claim for exemption for the current year and for the 3

immediately preceding calendar years. If the assessor denies an

existing claim for exemption, the assessor shall remove the

exemption of the property and, if the tax roll is in the local tax

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

denial and the local treasurer shall within 30 days of the date of

the denial issue a corrected tax bill for any additional taxes with

interest at the rate of 1.25% 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 denial and the county treasurer shall within 30 days of the

date of the denial prepare and submit a supplemental tax bill for

any additional taxes, together with interest at the rate of 1.25%

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 shall again begin to accrue 60 days after the date the

corrected or supplemental tax bill is issued at the rate of 1.25%

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. If the assessor

denies an existing claim for exemption, the interest due shall be

distributed as provided in subsection (23). However, if the

property has been transferred to a bona fide purchaser before

additional taxes were billed to the seller as a result of the

denial of a claim for exemption, the taxes, interest, and penalties

shall not be a lien on the property and shall not be billed to the

bona fide purchaser, and the local tax collecting unit if the local

tax collecting unit has possession of the tax roll or the county

treasurer if the county has possession of the tax roll shall notify

the department of treasury of the amount of tax due, interest, and

penalties through the date of that notification. The department of

treasury shall then assess the owner who claimed the exemption

under this section for the tax, interest, and penalties accruing as

a result of the denial of the claim for exemption, if any, as for

unpaid taxes provided under 1941 PA 122, MCL 205.1 to 205.31, and

shall deposit any tax or penalty collected into the state school

aid fund and shall distribute any interest collected as provided in

subsection (23). The denial shall be made on a form prescribed by

the department of treasury. If the property for which the assessor

has denied a claim for exemption under this subsection is located

in a county in which the county treasurer or the county

equalization director have elected to audit exemptions under

subsection (10), the assessor shall notify the county treasurer or

the county equalization director of the denial under this

subsection.

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

that the property for which the exemption is claimed is not the

principal residence of the owner claiming the exemption and has not

denied the claim, the assessor shall include a recommendation for

denial with any affidavit that is forwarded to the department of

treasury or, for an existing claim, shall send a recommendation for

denial to the department of treasury, stating the reasons for the

recommendation.

(8) The department of treasury shall determine if the property

is the principal residence of the owner claiming the exemption. The

department of treasury may review the validity of exemptions for

the current calendar year and for the 3 immediately preceding

calendar years. Except as otherwise provided in subsection (5), if

the department of treasury determines that the property is not the

principal residence of the owner claiming the exemption, the

department shall send a notice of that determination to the local

tax collecting unit and to the owner of the property claiming the

exemption, indicating that the claim for exemption is denied,

stating the reason for the denial, and advising the owner claiming

the exemption of the right to appeal the determination to the

department of treasury and what those rights of appeal are. The

department of treasury may issue a notice denying a claim if an

owner fails to respond within 30 days of receipt of a request for

information from that department. An owner may appeal the denial of

a claim of exemption to the department of treasury within 35 days

of receipt of the notice of denial. An appeal to the department of

treasury shall be conducted according to the provisions for an

informal conference in section 21 of 1941 PA 122, MCL 205.21.

Within 10 days after acknowledging an appeal of a denial of a claim

of exemption, the department of treasury shall notify the assessor

and the treasurer for the county in which the property is located

that an appeal has been filed. Upon receipt of a notice that the

department of treasury has denied a claim for exemption, the

assessor shall remove the exemption of the property and, if the tax

roll is in the local tax collecting unit's possession, amend the

tax roll to reflect the denial and the local treasurer shall within

30 days of the date of the denial issue a corrected tax bill for

any additional taxes with interest at the rate of 1.25% per month

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

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

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

amended to reflect the denial and the county treasurer shall within

30 days of the date of the denial prepare and submit a supplemental

tax bill for any additional taxes, together with interest at the

rate of 1.25% 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 shall again begin to accrue 60 days after the

date the corrected or supplemental tax bill is issued at the rate

of 1.25% 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. If the department

of treasury denies an existing claim for exemption, the interest

due shall be distributed as provided in subsection (23). However,

if the property has been transferred to a bona fide purchaser

before additional taxes were billed to the seller as a result of

the denial of a claim for exemption, the taxes, interest, and

penalties shall not be a lien on the property and shall not be

billed to the bona fide purchaser, and the local tax collecting

unit if the local tax collecting unit has possession of the tax

roll or the county treasurer if the county has possession of the

tax roll shall notify the department of treasury of the amount of

tax due and interest through the date of that notification. The

department of treasury shall then assess the owner who claimed the

exemption under this section for the tax and interest plus penalty

accruing as a result of the denial of the claim for exemption, if

any, as for unpaid taxes provided under 1941 PA 122, MCL 205.1 to

205.31, and shall deposit any tax or penalty collected into the

state school aid fund and shall distribute any interest collected

as provided in subsection (23).

(9) The department of treasury may enter into an agreement

regarding the implementation or administration of subsection (8)

with the assessor of any local tax collecting unit in a county that

has not elected to audit exemptions claimed under this section as

provided in subsection (10). The agreement may specify that for a

period of time, not to exceed 120 days, the department of treasury

will not deny an exemption identified by the department of treasury

in the list provided under subsection (11).

(10) A county may elect to audit the exemptions claimed under

this section in all local tax collecting units located in that

county as provided in this subsection. The election to audit

exemptions shall be made by the county treasurer, or by the county

equalization director with the concurrence by resolution of the

county board of commissioners. The initial election to audit

exemptions shall require an audit period of 2 years. Before 2009,

subsequent elections to audit exemptions shall be made every 2

years and shall require 2 annual audit periods. Beginning in 2009,

an election to audit exemptions shall be made every 5 years and

shall require 5 annual audit periods. An election to audit

exemptions shall be made by submitting an election to audit form to

the assessor of each local tax collecting unit in that county and

to the department of treasury not later than April 1 preceding the

October 1 in the year in which an election to audit is made. The

election to audit form required under this subsection shall be in a

form prescribed by the department of treasury. If a county elects

to audit the exemptions claimed under this section, the department

of treasury may continue to review the validity of exemptions as

provided in subsection (8). If a county does not elect to audit the

exemptions claimed under this section as provided in this

subsection, the department of treasury shall conduct an audit of

exemptions claimed under this section in the initial 2-year audit

period for each local tax collecting unit in that county unless the

department of treasury has entered into an agreement with the

assessor for that local tax collecting unit under subsection (9).

(11) If a county elects to audit the exemptions claimed under

this section as provided in subsection (10) and the county

treasurer or his or her designee or the county equalization

director or his or her designee believes that the property for

which an exemption is claimed is not the principal residence of the

owner claiming the exemption, the county treasurer or his or her

designee or the county equalization director or his or her designee

may, except as otherwise provided in subsection (5), deny an

existing claim by notifying the owner, the assessor of the local

tax collecting unit, and the department of treasury in writing of

the reason for the denial and advising the owner that the denial

may be appealed to the residential and small claims division of the

Michigan tax tribunal within 35 days after the date of the notice.

The county treasurer or his or her designee or the county

equalization director or his or her designee may deny a claim for

exemption for the current year and for the 3 immediately preceding

calendar years. If the county treasurer or his or her designee or

the county equalization director or his or her designee denies an

existing claim for exemption, the county treasurer or his or her

designee or the county equalization director or his or her designee

shall direct the assessor of the local tax collecting unit in which

the property is located to remove the exemption of the property

from the assessment roll and, if the tax roll is in the local tax

collecting unit's possession, direct the assessor of the local tax

collecting unit to amend the tax roll to reflect the denial and the

treasurer of the local tax collecting unit shall within 30 days of

the date of the denial issue a corrected tax bill for any

additional taxes with interest at the rate of 1.25% per month or

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

were last payable without interest and penalty. If the tax roll is

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

to reflect the denial and the county treasurer shall within 30 days

of the date of the denial prepare and submit a supplemental tax

bill for any additional taxes, together with interest at the rate

of 1.25% 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 shall again begin to accrue 60 days after the

date the corrected or supplemental tax bill is issued at the rate

of 1.25% 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. If the county

treasurer or his or her designee or the county equalization

director or his or her designee denies an existing claim for

exemption, the interest due shall be distributed as provided in

subsection (23). However, if the property has been transferred to a

bona fide purchaser before additional taxes were billed to the

seller as a result of the denial of a claim for exemption, the

taxes, interest, and penalties shall not be a lien on the property

and shall not be billed to the bona fide purchaser, and the local

tax collecting unit if the local tax collecting unit has possession

of the tax roll or the county treasurer if the county has

possession of the tax roll shall notify the department of treasury

of the amount of tax due and interest through the date of that

notification. The department of treasury shall then assess the

owner who claimed the exemption under this section for the tax and

interest plus penalty accruing as a result of the denial of the

claim for exemption, if any, as for unpaid taxes provided under

1941 PA 122, MCL 205.1 to 205.31, and shall deposit any tax or

penalty collected into the state school aid fund and shall

distribute any interest collected as provided in subsection (23).

The department of treasury shall annually provide the county

treasurer or his or her designee or the county equalization

director or his or her designee a list of parcels of property

located in that county for which an exemption may be erroneously

claimed. The county treasurer or his or her designee or the county

equalization director or his or her designee shall forward copies

of the list provided by the department of treasury to each assessor

in each local tax collecting unit in that county within 10 days of

receiving the list.

(12) If a county elects to audit exemptions claimed under this

section as provided in subsection (10), the county treasurer or the

county equalization director may enter into an agreement with the

assessor of a local tax collecting unit in that county regarding

the implementation or administration of this section. The agreement

may specify that for a period of time, not to exceed 120 days, the

county will not deny an exemption identified by the department of

treasury in the list provided under subsection (11).

(13) An owner may appeal a denial by the assessor of the local

tax collecting unit under subsection (6), a final decision of the

department of treasury under subsection (8), or a denial by the

county treasurer or his or her designee or the county equalization

director or his or her designee under subsection (11) to the

residential and small claims division of the Michigan tax tribunal

within 35 days of that decision. An owner is not required to pay

the amount of tax in dispute in order to appeal a denial of a claim

of exemption to the department of treasury or to receive a final

determination of the residential and small claims division of the

Michigan tax tribunal. However, interest at the rate of 1.25% per

month or fraction of a month and penalties shall accrue and be

computed from the date the taxes were last payable without interest

and penalty. If the residential and small claims division of the

Michigan tax tribunal grants an owner's appeal of a denial and that

owner has paid the interest due as a result of a denial under

subsection (6), (8), or (11), the interest received after a

distribution was made under subsection (23) shall be refunded.

(14) For taxes levied after December 31, 2005, for each county

in which the county treasurer or the county equalization director

does not elect to audit the exemptions claimed under this section

as provided in subsection (10), the department of treasury shall

conduct an annual audit of exemptions claimed under this section

for the current calendar year.

(15) Except as otherwise provided in subsection (5), an

affidavit filed by an owner for the exemption under this section

rescinds all previous exemptions filed by that owner for any other

property. The department of treasury shall notify the assessor of

the local tax collecting unit in which the property for which a

previous exemption was claimed is located if the previous exemption

is rescinded by the subsequent affidavit. When an exemption is

rescinded, the assessor of the local tax collecting unit shall

remove the exemption effective December 31 of the year in which the

affidavit was filed that rescinded the exemption. For any year for

which the rescinded exemption has not been removed from the tax

roll, the exemption shall be denied as provided in this section.

However, interest and penalty shall not be imposed for a year for

which a rescission form has been timely filed under subsection (5).

(16) Except as otherwise provided in subsection (28), if the

principal residence is part of a unit in a multiple-unit dwelling

or a dwelling unit in a multiple-purpose structure, an owner shall

claim an exemption for only that portion of the total taxable value

of the property used as the principal residence of that owner in a

manner prescribed by the department of treasury. If a portion of a

parcel for which the owner claims an exemption is used for a

purpose other than as a principal residence, the owner shall claim

an exemption for only that portion of the taxable value of the

property used as the principal residence of that owner in a manner

prescribed by the department of treasury.

(17) When a county register of deeds records a transfer of

ownership of a property, he or she shall notify the local tax

collecting unit in which the property is located of the transfer.

(18) The department of treasury shall make available the

affidavit forms and the forms to rescind an exemption, which may be

on the same form, to all city and township assessors, county

equalization officers, county registers of deeds, and closing

agents. A person who prepares a closing statement for the sale of

property shall provide affidavit and rescission forms to the buyer

and seller at the closing and, if requested by the buyer or seller

after execution by the buyer or seller, shall file the forms with

the local tax collecting unit in which the property is located. If

a closing statement preparer fails to provide exemption affidavit

and rescission forms to the buyer and seller, or fails to file the

affidavit and rescission forms with the local tax collecting unit

if requested by the buyer or seller, the buyer may appeal to the

department of treasury within 30 days of notice to the buyer that

an exemption was not recorded. If the department of treasury

determines that the buyer qualifies for the exemption, the

department of treasury shall notify the assessor of the local tax

collecting unit that the exemption is granted and the assessor of

the local tax collecting unit or, if the tax roll is in the

possession of the county treasurer, the county treasurer shall

correct the tax roll to reflect the exemption. This subsection does

not create a cause of action at law or in equity against a closing

statement preparer who fails to provide exemption affidavit and

rescission forms to a buyer and seller or who fails to file the

affidavit and rescission forms with the local tax collecting unit

when requested to do so by the buyer or seller.

(19) An owner who owned and occupied a principal residence on

May 1 for which the exemption was not on the tax roll may file an

appeal with the July board of review or December board of review in

the year for which the exemption was claimed or the immediately

succeeding 3 years. If an appeal of a claim for exemption that was

not on the tax roll is received not later than 5 days prior to the

date of the December board of review, the local tax collecting unit

shall convene a December board of review and consider the appeal

pursuant to this section and section 53b. For the 2008 tax year

only, an owner of property eligible for a conditional rescission

under subsection (5) who did not file a conditional rescission form

prescribed by the department of treasury with the local tax

collecting unit on or before May 1, 2008 may file an appeal with

the 2008 July board of review or 2008 December board of review to

claim a conditional rescission for the 2008 tax year.

(20) If the assessor or treasurer of the local tax collecting

unit believes that the department of treasury erroneously denied a

claim for exemption, the assessor or treasurer may submit written

information supporting the owner's claim for exemption to the

department of treasury within 35 days of the owner's receipt of the

notice denying the claim for exemption. If, after reviewing the

information provided, the department of treasury determines that

the claim for exemption was erroneously denied, the department of

treasury shall grant the exemption and the tax roll shall be

amended to reflect the exemption.

(21) If granting the exemption under this section results in

an overpayment of the tax, a rebate, including any interest paid,

shall be made to the taxpayer by the local tax collecting unit if

the local tax collecting unit has possession of the tax roll or by

the county treasurer if the county has possession of the tax roll

within 30 days of the date the exemption is granted. The rebate

shall be without interest.

(22) If an exemption under this section is erroneously granted

for an affidavit filed before October 1, 2003, an owner may request

in writing that the department of treasury withdraw the exemption.

The request to withdraw the exemption shall be received not later

than November 1, 2003. If an owner requests that an exemption be

withdrawn, the department of treasury shall issue an order

notifying the local assessor that the exemption issued under this

section has been denied based on the owner's request. If an

exemption is withdrawn, the property that had been subject to that

exemption shall be immediately placed on the tax roll by the local

tax collecting unit if the local tax collecting unit has possession

of the tax roll or by the county treasurer if the county has

possession of the tax roll as though the exemption had not been

granted. A corrected tax bill shall be issued for the tax year

being adjusted by the local tax collecting unit if the local tax

collecting unit has possession of the tax roll or by the county

treasurer if the county has possession of the tax roll. Unless a

denial has been issued prior to July 1, 2003, if an owner requests

that an exemption under this section be withdrawn and that owner

pays the corrected tax bill issued under this subsection within 30

days after the corrected tax bill is issued, that owner is not

liable for any penalty or interest on the additional tax. An owner

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 that would have accrued if the exemption

had not been granted from the date the taxes were originally

levied.

(23) Subject to subsection (24), interest at the rate of 1.25%

per month or fraction of a month collected under subsection (6),

(8), or (11) shall be distributed as follows:

(a) If the assessor of the local tax collecting unit denies

the exemption under this section, as follows:

(i) To the local tax collecting unit, 70%.

(ii) To the department of treasury, 10%.

(iii) To the county in which the property is located, 20%.

(b) If the department of treasury denies the exemption under

this section, as follows:

(i) To the local tax collecting unit, 20%.

(ii) To the department of treasury, 70%.

(iii) To the county in which the property is located, 10%.

county equalization director or his or her designee denies the

exemption under this section, as follows:

(i) To the local tax collecting unit, 20%.

(ii) To the department of treasury, 10%.

(iii) To the county in which the property is located, 70%.

(24) Interest distributed under subsection (23) is subject to

the following conditions:

(a) Interest distributed to a county shall be deposited into a

restricted fund to be used solely for the administration of

exemptions under this section. Money in that restricted fund shall

lapse to the county general fund on the December 31 in the year 3

years after the first distribution of interest to the county under

subsection (23) and on each succeeding December 31 thereafter.

(b) Interest distributed to the department of treasury shall

be deposited into the principal residence property tax exemption

audit fund, which is created within the state treasury. The state

treasurer may receive money or other assets from any source for

deposit into the fund. The state treasurer shall direct the

investment of the fund. The state treasurer shall credit to the

fund interest and earnings from fund investments. Money in the fund

shall be considered a work project account and at the close of the

fiscal year shall remain in the fund and shall not lapse to the

general fund. Money from the fund shall be expended, upon

appropriation, only for the purpose of auditing exemption

affidavits.

(25) Interest distributed under subsection (23) is in addition

to and shall not affect the levy or collection of the county

property tax administration fee established under this act.

(26) A cooperative housing corporation is entitled to a full

or partial exemption under this section for the tax year in which

the cooperative housing corporation files all of the following with

the local tax collecting unit in which the cooperative housing

corporation is located if filed on or before May 1 for taxes levied

before January 1, 2009, or, for taxes levied after December 31,

2008, at any time after tax day in a tax year for that portion of

taxes levied in that tax year determined by multiplying the taxes

levied in that tax year by a fraction the numerator of which is the

number of days remaining from the date the affidavit is filed until

December 31 in that tax year and the denominator of which is the

number of days in that tax year:

(a) An affidavit form.

(b) A statement of the total number of units owned by the

cooperative housing corporation and occupied as the principal

residence of a tenant stockholder as of the date of the filing

under this subsection.

security number of each tenant stockholder of the cooperative

housing corporation occupying a unit in the cooperative housing

corporation as his or her principal residence as of the date of the

filing under this subsection.

(d) A statement of the total number of units of the

cooperative housing corporation on which an exemption under this

section was claimed and that were transferred in the tax year

immediately preceding the tax year in which the filing under this

section was made.

(27) Before May 1, 2004 and before May 1, 2005, the treasurer

of each county shall forward to the department of education a

statement of the taxable value of each school district and fraction

of a school district within the county for the preceding 4 calendar

years. This requirement is in addition to the requirement set forth

in section 151 of the state school aid act of 1979, 1979 PA 94, MCL

388.1751.

(28) For a parcel of property open and available for use as a

bed and breakfast, the portion of the taxable value of the property

used as a principal residence under subsection (16) shall be

calculated in the following manner:

(a) Add all of the following:

(i) The square footage of the property used exclusively as that

owner's principal residence.

(ii) 50% of the square footage of the property's common area.

(iii) If the property was not open and available for use as a

bed and breakfast for 90 or more consecutive days in the

immediately preceding 12-month period, the result of the following

calculation:

(A) Add the square footage of the property that is open and

available regularly and exclusively as a bed and breakfast, and 50%

of the square footage of the property's common area.

(B) Multiply the result of the calculation in sub-subparagraph

(A) by a fraction, the numerator of which is the number of

consecutive days in the immediately preceding 12-month period that

the property was not open and available for use as a bed and

breakfast and the denominator of which is 365.

(b) Divide the result of the calculation in subdivision (a) by

the total square footage of the property.

(29) The owner claiming an exemption under this section for

property open and available as a bed and breakfast shall file an

affidavit claiming the exemption on or before May 1 with the local

tax collecting unit in which the property is located. The affidavit

shall be in a form prescribed by the department of treasury.

(30) As used in this section:

(a) "Bed and breakfast" means property classified as

residential real property under section 34c that meets all of the

following criteria:

(i) Has 10 or fewer sleeping rooms, including sleeping rooms

occupied by the owner of the property, 1 or more of which are

available for rent to transient tenants.

(ii) Serves meals at no extra cost to its transient tenants.

(iii) Has a smoke detector in proper working order in each

sleeping room and a fire extinguisher in proper working order on

each floor.

(b) "Common area" includes, but is not limited to, a kitchen,

dining room, living room, fitness room, porch, hallway, laundry

room, or bathroom that is available for use by guests of a bed and

breakfast or, unless guests are specifically prohibited from access

to the area, an area that is used to provide a service to guests of

a bed and breakfast.

Sec. 24c. (1) The assessor shall give to each owner or person

or persons listed on the assessment roll of the property a notice

by first-class mail of an increase in the tentative state equalized

valuation or the tentative taxable value for the year. The notice

shall specify each parcel of property, the tentative taxable value

for the current year, and the taxable value for the immediately

preceding year. The notice shall also specify the time and place of

the meeting of the board of review. The notice shall also specify

the difference between the property's tentative taxable value in

the current year and the property's taxable value in the

immediately preceding year.

(2) The notice shall include, in addition to the information

required by subsection (1), all of the following:

(a) The state equalized valuation for the immediately

preceding year.

(b) The tentative state equalized valuation for the current

year.

valuation for the current year and the state equalized valuation

for the immediately preceding year.

(d) The classification of the property as defined by section

34c.

(e) The inflation rate for the immediately preceding year as

defined in section 34d.

(f) A statement provided by the state tax commission

explaining the relationship between state equalized valuation and

taxable value. If the assessor believes that a transfer of

ownership has occurred in the immediately preceding year, the

statement shall state that the ownership was transferred and that

the taxable value of that property is the same as the state

equalized valuation of that property.

(3) When required by the income tax act of 1967, 1967 PA 281,

MCL 206.1 to 206.532, the assessment notice shall include or be

accompanied by information or forms prescribed by the income tax

act of 1967, 1967 PA 281, MCL 206.1 to 206.532.

(4) The assessment notice shall be addressed to the owner

according to the records of the assessor and mailed not less than

10 days before the meeting of the board of review. The failure to

send or receive an assessment notice does not invalidate an

assessment roll or an assessment on that property.

(5) The tentative state equalized valuation shall be

calculated by multiplying the assessment by the tentative equalized

valuation multiplier. If the assessor has made assessment

adjustments that would have changed the tentative multiplier, the

assessor may recalculate the multiplier for use in the notice.

(6) The state tax commission shall prepare a model assessment

notice form that shall be made available to local units of

government.

(7) ~~The~~ Before January 1, 2009, the assessment notice under

subsection (1) shall include the following statement:

"If you purchased your principal residence after May 1 last

year, to claim the principal residence exemption, if you have not

already done so, you are required to file an affidavit before May

1.".

(8) After December 31, 2008, the assessment notice under

subsection (1) shall include the following statement:

"To claim the principal residence exemption, if you have not

already done so, you are required to file an affidavit with the

local tax collecting unit.".

(9) ~~(8)~~ For taxes levied after December 31, 2003, the

assessment notice under subsection (1) shall separately state the

state equalized valuation and taxable value for any leasehold

improvements.

Sec. 27. (1) As used in this act, "true cash value" means the

usual selling price at the place where the property to which the

term is applied is at the time of assessment, being the price that

could be obtained for the property at private sale, and not at

auction sale except as otherwise provided in this section, or at

forced sale. The usual selling price may include sales at public

auction held by a nongovernmental agency or person if those sales

have become a common method of acquisition in the jurisdiction for

the class of property being valued. The usual selling price does

not include sales at public auction if the sale is part of a

liquidation of the seller's assets in a bankruptcy proceeding or if

the seller is unable to use common marketing techniques to obtain

the usual selling price for the property. A sale or other

disposition by this state or an agency or political subdivision of

this state of land acquired for delinquent taxes or an appraisal

made in connection with the sale or other disposition or the value

attributed to the property of regulated public utilities by a

governmental regulatory agency for rate-making purposes is not

controlling evidence of true cash value for assessment purposes. In

determining the true cash value, the assessor shall also consider

the advantages and disadvantages of location; quality of soil;

zoning; existing use; present economic income of structures,

including farm structures; present economic income of land if the

land is being farmed or otherwise put to income producing use;

quantity and value of standing timber; water power and privileges;

and mines, minerals, quarries, or other valuable deposits known to

be available in the land and their value. In determining the true

cash value of personal property owned by an electric utility

cooperative, the assessor shall consider the number of kilowatt

hours of electricity sold per mile of distribution line compared to

the average number of kilowatt hours of electricity sold per mile

of distribution line for all electric utilities. Beginning December

31, 2008, there is a rebuttable presumption that the value

determined for property by an independent appraisal is the true

cash value of the property appraised.

(2) The assessor shall not consider the increase in true cash

value that is a result of expenditures for normal repairs,

replacement, and maintenance in determining the true cash value of

property for assessment purposes until the property is sold. For

the purpose of implementing this subsection, the assessor shall not

increase the construction quality classification or reduce the

effective age for depreciation purposes, except if the appraisal of

the property was erroneous before nonconsideration of the normal

repair, replacement, or maintenance, and shall not assign an

economic condition factor to the property that differs from the

economic condition factor assigned to similar properties as defined

by appraisal procedures applied in the jurisdiction. The increase

in value attributable to the items included in subdivisions (a) to

(o) that is known to the assessor and excluded from true cash value

shall be indicated on the assessment roll. This subsection applies

only to residential property. The following repairs are considered

normal maintenance if they are not part of a structural addition or

completion:

(a) Outside painting.

(b) Repairing or replacing siding, roof, porches, steps,

sidewalks, or drives.

(d) Replacing awnings.

(e) Adding or replacing gutters and downspouts.

(f) Replacing storm windows or doors.

(g) Insulating or weatherstripping.

(h) Complete rewiring.

(i) Replacing plumbing and light fixtures.

(j) Replacing a furnace with a new furnace of the same type or

replacing an oil or gas burner.

(k) Repairing plaster, inside painting, or other redecorating.

(l) New ceiling, wall, or floor surfacing.

(m) Removing partitions to enlarge rooms.

(n) Replacing an automatic hot water heater.

(o) Replacing dated interior woodwork.

(3) A city or township assessor, a county equalization

department, or the state tax commission before utilizing real

estate sales data on real property purchases, including purchases

by land contract, to determine assessments or in making sales ratio

studies to assess property or equalize assessments shall exclude

from the sales data the following amounts allowed by subdivisions

(a), (b), and (c) to the extent that the amounts are included in

the real property purchase price and are so identified in the real

estate sales data or certified to the assessor as provided in

subdivision (d):

(a) Amounts paid for obtaining financing of the purchase price

of the property or the last conveyance of the property.

(b) Amounts attributable to personal property that were

included in the purchase price of the property in the last

conveyance of the property.

last conveyance of the property. The legislature may require local

units of government, including school districts, to submit reports

of revenue lost under subdivisions (a) and (b) and this subdivision

so that the state may reimburse those units for that lost revenue.

(d) The purchaser of real property, including a purchaser by

land contract, may file with the assessor of the city or township

in which the property is located 2 copies of the purchase agreement

or of an affidavit that identifies the amount, if any, for each

item listed in subdivisions (a) to (c). One copy shall be forwarded

by the assessor to the county equalization department. The

affidavit shall be prescribed by the state tax commission.

(4) As used in subsection (1), "present economic income" means

for leased or rented property the ordinary, general, and usual

economic return realized from the lease or rental of property

negotiated under current, contemporary conditions between parties

equally knowledgeable and familiar with real estate values. The

actual income generated by the lease or rental of property is not

the controlling indicator of its true cash value in all cases. This

subsection does not apply to property subject to a lease entered

into before January 1, 1984 for which the terms of the lease

governing the rental rate or tax liability have not been

renegotiated after December 31, 1983. This subsection does not

apply to a nonprofit housing cooperative subject to regulatory

agreements between the state or federal government entered into

before January 1, 1984. As used in this subsection, "nonprofit

cooperative housing corporation" means a nonprofit cooperative

housing corporation that is engaged in providing housing services

to its stockholders and members and that does not pay dividends or

interest upon stock or membership investment but that does

distribute all earnings to its stockholders or members.

(5) Beginning December 31, 1994, the purchase price paid in a

transfer of property is not the presumptive true cash value of the

property transferred. In determining the true cash value of

transferred property, an assessing officer shall assess that

property using the same valuation method used to value all other

property of that same classification in the assessing jurisdiction.

As used in this subsection, "purchase price" means the total

consideration agreed to in an arms-length transaction and not at a

forced sale paid by the purchaser of the property, stated in

dollars, whether or not paid in dollars.

(6) For purposes of a statement submitted under section 19,

the true cash value of a standard tool is the net book value of

that standard tool as of December 31 in each tax year as determined

using generally accepted accounting principles in a manner

consistent with the established depreciation method used by the

person submitting that statement. The net book value of a standard

tool for federal income tax purposes is not the presumptive true

cash value of that standard tool. As used in this subsection,

"standard tool" means that term as defined in section 9b.

(7) Beginning December 31, 2008, the department of treasury

shall require assessors to use a single-year sales ratio study in

determining assessments if the single-year sales ratio study would

result in an assessment increase for real property that is less

than the assessment increase that would result using a multiyear

sales ratio study. A single-year sales ratio study shall include

both sales and foreclosures occurring on October 1 through the

immediately succeeding September 30.

Sec. 27a. (1) Except as otherwise provided in this section,

property shall be assessed at 50% of its true cash value under

section 3 of article IX of the state constitution of 1963.

(2) Except as otherwise provided in subsection (3), for taxes

levied in 1995 and for each year after 1995, the taxable value of

each parcel of property is the lesser of the following:

(a) The property's taxable value in the immediately preceding

year minus any losses, multiplied by the lesser of 1.05 or the

inflation rate, plus all additions. However, if a fraction the

numerator of which is the state equalized valuation for the current

year minus additions and the denominator of which is the state

equalized valuation for the immediately preceding year minus losses

is greater than zero but less than both 1.05 or the inflation rate,

for purposes of this subdivision the taxable value is the

property's taxable value in the immediately preceding year

multiplied by that fraction; and if that fraction is less than or

equal to zero, for purposes of this subdivision the taxable value

is the property's taxable value in the immediately preceding year

minus losses plus additions. For taxes levied in 1995, the

property's taxable value in the immediately preceding year is the

property's state equalized valuation in 1994.

(b) The property's current state equalized valuation.

(3) Upon a transfer of ownership of property after 1994

through 2008, the property's taxable value for the calendar year

following the year of the transfer is the property's state

equalized valuation for the calendar year following the transfer.

Upon a transfer of ownership of property after 2008, the property's

taxable value for the calendar year following the year of the

transfer is the property's state equalized valuation for the

calendar year following the transfer multiplied by a fraction the

numerator of which is the total taxable value of all real property

sold in the local tax collecting unit for the calendar year in

which the transfer occurred and the denominator of which is the

total state equalized valuation of all real property sold in the

local tax collecting unit for the calendar year in which the

transfer occurred.

(4) If the taxable value of property is adjusted under

subsection (3), a subsequent increase in the property's taxable

value is subject to the limitation set forth in subsection (2)

until a subsequent transfer of ownership occurs. If the taxable

value of property is adjusted under subsection (3) and the assessor

determines that there had not been a transfer of ownership, the

taxable value of the property shall be adjusted at the July or

December board of review. Notwithstanding the limitation provided

in section 53b(1) on the number of years for which a correction may

be made, the July or December board of review may adjust the

taxable value of property under this subsection for the current

year and for the 3 immediately preceding calendar years. A

corrected tax bill shall be issued for each tax year for which the

taxable value is adjusted by the local tax collecting unit if the

local tax collecting unit has possession of the tax roll or by the

county treasurer if the county has possession of the tax roll. For

purposes of section 53b, an adjustment under this subsection shall

be considered the correction of a clerical error.

(5) Assessment of property, as required in this section and

section 27, is inapplicable to the assessment of property subject

to the levy of ad valorem taxes within voted tax limitation

increases to pay principal and interest on limited tax bonds issued

by any governmental unit, including a county, township, community

college district, or school district, before January 1, 1964, if

the assessment required to be made under this act would be less

than the assessment as state equalized prevailing on the property

at the time of the issuance of the bonds. This inapplicability

shall continue until levy of taxes to pay principal and interest on

the bonds is no longer required. The assessment of property

required by this act shall be applicable for all other purposes.

(6) As used in this act, "transfer of ownership" means the

conveyance of title to or a present interest in property, including

the beneficial use of the property, the value of which is

substantially equal to the value of the fee interest. Transfer of

ownership of property includes, but is not limited to, the

following:

(a) A conveyance by deed.

(b) A conveyance by land contract. The taxable value of

property conveyed by a land contract executed after December 31,

1994 shall be adjusted under subsection (3) for the calendar year

following the year in which the contract is entered into and shall

not be subsequently adjusted under subsection (3) when the deed

conveying title to the property is recorded in the office of the

the settlor or the settlor's spouse, or both, conveys the property

to the trust and the sole present beneficiary or beneficiaries are

the settlor or the settlor's spouse, or both.

(d) A conveyance by distribution from a trust, except if the

distributee is the sole present beneficiary or the spouse of the

sole present beneficiary, or both.

(e) A change in the sole present beneficiary or beneficiaries

of a trust, except a change that adds or substitutes the spouse of

the sole present beneficiary.

(f) A conveyance by distribution under a will or by intestate

succession, except if the distributee is the decedent's spouse.

(g) A conveyance by lease if the total duration of the lease,

including the initial term and all options for renewal, is more

than 35 years or the lease grants the lessee a bargain purchase

option. As used in this subdivision, "bargain purchase option"

means the right to purchase the property at the termination of the

lease for not more than 80% of the property's projected true cash

value at the termination of the lease. After December 31, 1994, the

taxable value of property conveyed by a lease with a total duration

of more than 35 years or with a bargain purchase option shall be

adjusted under subsection (3) for the calendar year following the

year in which the lease is entered into. This subdivision does not

apply to personal property except buildings described in section

14(6) and personal property described in section 8(h), (i), and

(j). This subdivision does not apply to that portion of the

property not subject to the leasehold interest conveyed.

(h) A conveyance of an ownership interest in a corporation,

partnership, sole proprietorship, limited liability company,

limited liability partnership, or other legal entity if the

ownership interest conveyed is more than 50% of the corporation,

partnership, sole proprietorship, limited liability company,

limited liability partnership, or other legal entity. Unless

notification is provided under subsection (10), the corporation,

partnership, sole proprietorship, limited liability company,

limited liability partnership, or other legal entity shall notify

the assessing officer on a form provided by the state tax

commission not more than 45 days after a conveyance of an ownership

interest that constitutes a transfer of ownership under this

subdivision.

(i) A transfer of property held as a tenancy in common, except

that portion of the property not subject to the ownership interest

conveyed.

(j) A conveyance of an ownership interest in a cooperative

housing corporation, except that portion of the property not

subject to the ownership interest conveyed.

(7) Transfer of ownership does not include the following:

(a) The transfer of property from 1 spouse to the other spouse

or from a decedent to a surviving spouse.

(b) A transfer from a husband, a wife, or a husband and wife

creating or disjoining a tenancy by the entireties in the grantors

or the grantor and his or her spouse.

estate or life lease retained by the transferor, until expiration

or termination of the life estate or life lease. That portion of

property transferred that is not subject to a life lease shall be

adjusted under subsection (3).

(d) A transfer through foreclosure or forfeiture of a recorded

instrument under chapter 31, 32, or 57 of the revised judicature

act of 1961, 1961 PA 236, MCL 600.3101 to ~~600.3280~~ 600.3285 and MCL

600.5701 to 600.5759, or through deed or conveyance in lieu of a

foreclosure or forfeiture, until the mortgagee or land contract

vendor subsequently transfers the property. If a mortgagee does not

transfer the property within 1 year of the expiration of any

applicable redemption period, the property shall be adjusted under

subsection (3).

(e) A transfer by redemption by the person to whom taxes are

assessed of property previously sold for delinquent taxes.

(f) A conveyance to a trust if the settlor or the settlor's

spouse, or both, conveys the property to the trust and the sole

present beneficiary of the trust is the settlor or the settlor's

spouse, or both.

(g) A transfer pursuant to a judgment or order of a court of

record making or ordering a transfer, unless a specific monetary

consideration is specified or ordered by the court for the

transfer.

(h) A transfer creating or terminating a joint tenancy between

2 or more persons if at least 1 of the persons was an original

owner of the property before the joint tenancy was initially

created and, if the property is held as a joint tenancy at the time

of conveyance, at least 1 of the persons was a joint tenant when

the joint tenancy was initially created and that person has

remained a joint tenant since the joint tenancy was initially

created. A joint owner at the time of the last transfer of

ownership of the property is an original owner of the property. For

purposes of this subdivision, a person is an original owner of

property owned by that person's spouse.

(i) A transfer for security or an assignment or discharge of a

security interest.

(j) A transfer of real property or other ownership interests

among members of an affiliated group. As used in this subsection,

"affiliated group" means 1 or more corporations connected by stock

ownership to a common parent corporation. Upon request by the state

tax commission, a corporation shall furnish proof within 45 days

that a transfer meets the requirements of this subdivision. A

corporation that fails to comply with a request by the state tax

commission under this subdivision is subject to a fine of $200.00.

(k) Normal public trading of shares of stock or other

ownership interests that, over any period of time, cumulatively

represent more than 50% of the total ownership interest in a

corporation or other legal entity and are traded in multiple

transactions involving unrelated individuals, institutions, or

other legal entities.

(l) A transfer of real property or other ownership interests

among corporations, partnerships, limited liability companies,

limited liability partnerships, or other legal entities if the

entities involved are commonly controlled. Upon request by the

state tax commission, a corporation, partnership, limited liability

company, limited liability partnership, or other legal entity shall

furnish proof within 45 days that a transfer meets the requirements

of this subdivision. A corporation, partnership, limited liability

company, limited liability partnership, or other legal entity that

fails to comply with a request by the state tax commission under

this subdivision is subject to a fine of $200.00.

(m) A direct or indirect transfer of real property or other

ownership interests resulting from a transaction that qualifies as

a tax-free reorganization under section 368 of the internal revenue

code, 26 USC 368. Upon request by the state tax commission, a

property owner shall furnish proof within 45 days that a transfer

meets the requirements of this subdivision. A property owner who

fails to comply with a request by the state tax commission under

this subdivision is subject to a fine of $200.00.

(n) A transfer of qualified agricultural property, if the

person to whom the qualified agricultural property is transferred

files an affidavit with the assessor of the local tax collecting

unit in which the qualified agricultural property is located and

with the register of deeds for the county in which the qualified

agricultural property is located attesting that the qualified

agricultural property shall remain qualified agricultural property.

The affidavit under this subdivision shall be in a form prescribed

by the department of treasury. An owner of qualified agricultural

property shall inform a prospective buyer of that qualified

agricultural property that the qualified agricultural property is

subject to the recapture tax provided in the agricultural property

recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the

qualified agricultural property is converted by a change in use. If

property ceases to be qualified agricultural property at any time

after being transferred, all of the following shall occur:

(i) The taxable value of that property shall be adjusted under

subsection (3) as of the December 31 in the year that the property

ceases to be qualified agricultural property.

(ii) The property is subject to the recapture tax provided for

under the agricultural property recapture act, 2000 PA 261, MCL

211.1001 to 211.1007.

(o) A transfer of qualified forest property, if the person to

whom the qualified forest property is transferred files an

affidavit with the assessor of the local tax collecting unit in

which the qualified forest property is located and with the

property is located attesting that the qualified forest property

shall remain qualified forest property. The affidavit under this

subdivision shall be in a form prescribed by the department of

treasury. An owner of qualified forest property shall inform a

prospective buyer of that qualified forest property that the

qualified forest property is subject to the recapture tax provided

in the qualified forest property recapture tax act, 2006 PA 379,

MCL 211.1031 to 211.1036, if the qualified forest property is

converted by a change in use. If property ceases to be qualified

forest property at any time after being transferred, all of the

following shall occur:

(i) The taxable value of that property shall be adjusted under

subsection (3) as of the December 31 in the year that the property

ceases to be qualified forest property.

(ii) The property is subject to the recapture tax provided for

under the qualified forest property recapture tax act, 2006 PA 379,

MCL 211.1031 to 211.1036.

(p) Beginning on the effective date of the amendatory act that

added this subdivision, a transfer of land, but not buildings or

structures located on the land, which meets 1 or more of the

following requirements:

(i) The land is subject to a conservation easement under

subpart 11 of part 21 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in

this subparagraph, "conservation easement" means that term as

defined in section 2140 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.2140.

(ii) A transfer of ownership of the land or a transfer of an

interest in the land is eligible for a deduction as a qualified

conservation contribution under section 170(h) of the internal

revenue code, 26 USC 170.

(8) If all of the following conditions are satisfied, the

local tax collecting unit shall revise the taxable value of

qualified agricultural property taxable on the tax roll in the

possession of that local tax collecting unit to the taxable value

that qualified agricultural property would have had if there had

been no transfer of ownership of that qualified agricultural

property since December 31, 1999 and there had been no adjustment

of that qualified agricultural property's taxable value under

subsection (3) since December 31, 1999:

(a) The qualified agricultural property was qualified

agricultural property for taxes levied in 1999 and each year after

1999.

(b) The owner of the qualified agricultural property files an

affidavit with the assessor of the local tax collecting unit under

subsection (7)(n).

(9) If the taxable value of qualified agricultural property is

adjusted under subsection (8), the owner of that qualified

agricultural property shall not be entitled to a refund for any

property taxes collected under this act on that qualified

agricultural property before the adjustment under subsection (8).

(10) The register of deeds of the county where deeds or other

title documents are recorded shall notify the assessing officer of

the appropriate local taxing unit not less than once each month of

any recorded transaction involving the ownership of property and

shall make any recorded deeds or other title documents available to

that county's tax or equalization department. Unless notification

is provided under subsection (6), the buyer, grantee, or other

transferee of the property shall notify the appropriate assessing

office in the local unit of government in which the property is

located of the transfer of ownership of the property within 45 days

of the transfer of ownership, on a form prescribed by the state tax

commission that states the parties to the transfer, the date of the

transfer, the actual consideration for the transfer, and the

property's parcel identification number or legal description. Forms

filed in the assessing office of a local unit of government under

this subsection shall be made available to the county tax or

equalization department for the county in which that local unit of

government is located. This subsection does not apply to personal

property except buildings described in section 14(6) and personal

property described in section 8(h), (i), and (j).

(11) As used in this section:

(a) "Additions" means that term as defined in section 34d.

(b) "Beneficial use" means the right to possession, use, and

enjoyment of property, limited only by encumbrances, easements, and

restrictions of record.

in the agricultural property recapture act, 2000 PA 261, MCL

211.1001 to 211.1007.

(d) "Inflation rate" means that term as defined in section

34d.

(e) "Losses" means that term as defined in section 34d.

(f) "Qualified agricultural property" means that term as

defined in section 7dd.

(g) "Qualified forest property" means that term as defined in

section 7jj[1].

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 be the Tuesday or Wednesday

following the second Monday of March.

(3) The first meeting of the board of review shall start not

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

than 6 hours. The board of review shall also meet for not less than

6 12 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 or adds property to the assessment roll. The

board of review shall hold at least 3 9 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 18

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. 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 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 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) 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.

(6) 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.

(7) 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.

LegiScan Search

View Top 50 Searches

LegiScan Info

Price List

Voter Registration

Governor Deadlines &
Effective Dates

LegiScan Trends

View Top 50 National

MA S2902 Relative to the reduction of certain toxic chemicals in firefighter personal...

CA AB3291 Developmental services.

US HB9060 Biodiesel Tax Credit Extension Act of 2024

US SB870 Fire Grants and Safety Act

US HB8890 Regional Partnership Grants Reauthorization Act of 2024

NH HB1698 Relative to the use of drones for the aerial application of pesticides...

CA AB3139 Data privacy: vehicle manufacturers: remote vehicle technology.

NJ A3860 Establishes certain medical billing requirements concerning specific nature...

US HB8879 Improving VA Training for Military Sexual Trauma Claims Act

US SB4757 Environmental Health in Prisons Act

Main menu

Bill Text: MI HB4233 | 2009-2010 | 95th Legislature | Introduced

Michigan House Bill 4233 (Prior Session Legislation)

HOUSE BILL No. 4233

LegiScan Search

LegiScan Info

LegiScan Trends