Bill Text: MI HB5340 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Property tax; tax tribunal; judgment interest rate; revise. Amends sec. 37 of 1973 PA 186 (MCL 205.737).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-07-18 - Assigned Pa 220'12 With Immediate Effect [HB5340 Detail]
Download: Michigan-2011-HB5340-Engrossed.html
HB-5340, As Passed Senate, June 14, 2012
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5340
A bill to amend 1973 PA 186, entitled
"Tax tribunal act,"
by amending section 37 (MCL 205.737), as amended by 2006 PA 174.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 37. (1) The tribunal shall determine a property's taxable
value pursuant to section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.
(2) The tribunal shall determine a property's state equalized
valuation by multiplying its finding of true cash value by a
percentage equal to the ratio of the average level of assessment in
relation to true cash values in the assessment district, and
equalizing that product by application of the equalization factor
that is uniformly applicable in the assessment district for the
year in question. The property's state equalized valuation shall
not exceed 50% of the true cash value of the property on the
assessment date.
(3) The petitioner has the burden of proof in establishing the
true cash value of the property. The assessing agency has the
burden of proof in establishing the ratio of the average level of
assessments in relation to true cash values in the assessment
district and the equalization factor that was uniformly applied in
the assessment district for the year in question.
(4) If the taxpayer paid additional taxes as a result of the
unlawful assessments on the same property after filing the
petition, or if in subsequent years an unlawful assessment is made
against the same property, the taxpayer, not later than the filing
deadline prescribed in section 35 for a proceeding before the
tribunal that is commenced before January 1, 2007 or section 35a
for a proceeding before the tribunal that is commenced after
December 31, 2006, except as otherwise provided in subsections (5)
and (7), may amend the petition to join all of the claims for a
determination of the property's taxable value, state equalized
valuation, or exempt status and for a refund of payments based on
the unlawful assessments. The motion to amend the petition to add a
subsequent year shall be accompanied by a motion fee equal to 50%
of the filing fee to file a petition to commence an appeal for that
property in that year. A sum determined by the tribunal to have
been unlawfully paid or underpaid shall bear interest from the date
of payment to the date of judgment and the judgment shall bear
interest to date of its payment. However, a sum determined by the
tribunal to have been underpaid shall not bear interest for any
time period prior to 28 days after the tribunal's decision.
Interest required by this subsection shall accrue for periods
before April 1, 1982 at a rate of 6% per year, shall accrue for
periods after March 31, 1982 but before April 1, 1985 at a rate of
12% per year, and shall accrue for periods after March 31, 1985 but
before April 1, 1994 at a rate of 9% per year. After March 31, 1994
but before January 1, 1996, interest shall accrue at an interest
rate set monthly at a per annum rate based on the auction rate of
the 91-day discount treasury bill rate for the first Monday in each
month, plus 1%. After December 31, 1995 but before July 1, 2012,
interest shall accrue at an interest rate set each year based on
the average auction rate of 91-day discount treasury bills in the
immediately preceding state fiscal year as certified by the
department of treasury, plus 1%. The department of treasury shall
certify the interest rate within 60 days after the end of the
immediately preceding fiscal year. After June 30, 2012, interest
shall accrue at 1 percentage point above the adjusted prime rate.
As used in this section, "adjusted prime rate" means the average
predominant prime rate quoted by not fewer than 3 commercial banks
to large businesses, as determined by the department of treasury.
The adjusted prime rate is to be based on the average prime rate
charged by not fewer than 3 commercial banks during the 6-month
period ending on March 31 and the 6-month period ending on
September 30. One percentage point shall be added to the adjusted
prime rate and the resulting sum shall be divided by 12 to
establish the current monthly interest rate. The resulting current
monthly interest rate based on the 6-month period ending March 31
becomes effective on the following July 1, and the resulting
current monthly interest rate based on the 6-month period ending
September 30 becomes effective on January 1 of the following year.
The tribunal shall order the refund of all or part of a property
tax administration fee paid in connection with taxes that the
tribunal determines were unlawfully paid.
(5) A motion to amend a petition to add subsequent years is
not necessary in the following circumstances:
(a) If the tribunal has jurisdiction over a petition alleging
that the property is exempt from taxation, the appeal for each
subsequent year for which an assessment has been established shall
be added automatically to the petition. However, upon leave of the
tribunal, the petitioner or respondent may request that any
subsequent year be excluded from appeal at the time of the hearing
on the petition.
(b) If the residential property and small claims division of
the tribunal has jurisdiction over a petition, the appeal for each
subsequent year for which an assessment has been established shall
be added automatically to the petition. The residential property
and small claims division shall automatically add to an appeal of a
final determination of a claim for exemption of a principal
residence or of qualified agricultural property each subsequent
year in which a claim for exemption of that principal residence or
that qualified agricultural property is denied. However, upon leave
of the tribunal, the petitioner or respondent may request that any
subsequent year be excluded from appeal at the time of the hearing
on the petition.
(6) The notice of the hearing on a petition shall include a
statement advising the petitioner of the right to amend his or her
petition to include or exclude subsequent years as provided by
subsections (4) and (5).
(7) If the final equalization multiplier for the tax year is
greater than the tentative multiplier used in preparing the
assessment notice and as a result of action of the state board of
equalization or county board of commissioners a taxpayer's
assessment as equalized is in excess of 50% of true cash value,
that person may appeal directly to the tax tribunal without a prior
protest before the local board of review. The appeal shall be filed
under this subsection on or before the third Monday in August and
shall be heard in the same manner as other appeals of the tribunal.
An appeal pursuant to this subsection shall not result in an
equalized value less than the assessed value multiplied by the
tentative equalization multiplier used in preparing the assessment
notice.
