Bill Text: MI HB5261 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property tax; exemptions; filings for certain personal property exemptions; modify dates. Amends sec. 9o of 1893 PA 206 (MCL 211.9o).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-05-03 - Assigned Pa 132'18 With Immediate Effect [HB5261 Detail]
Download: Michigan-2017-HB5261-Introduced.html
HOUSE BILL No. 5261
November 28, 2017, Introduced by Rep. Tedder 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 2013 PA 153.
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 annually filing an affidavit a
statement with the local tax collecting unit in which the eligible
personal
property is located not later than February 10 in each tax
year.
20 of the first year the
exemption is claimed. The affidavit
statement shall be in a form prescribed by the state tax commission
and shall 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 affidavit
statement 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 an affidavit 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 also file a
statement
under section 19. in that tax year.
(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) (5)
If the assessor of the local tax
collecting unit
believes
that personal property for which an affidavit 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
affidavit
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. The assessor
may
deny a claim for exemption for the current year and for the 3
immediately
preceding calendar years. If the assessor denies a
claim
for exemption, 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
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% 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% 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% 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.
(7) (6)
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).
(7)
For 2014 only, if an owner of eligible personal property
did
not timely file an affidavit to claim the exemption under this
section,
that owner may file an appeal with the March 2014 board of
review
to claim the exemption.
(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.
