Bill Text: MI SB0020 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Property tax: appeals; process for appealing certain assessment-related disputes as to certain property; amend. Amends sec. 34 of 1893 PA 206 (MCL 211.34) & adds secs. 34f & 34g.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-01-17 - Referred To Committee On Finance, Insurance, And Consumer Protection [SB0020 Detail]
Download: Michigan-2023-SB0020-Introduced.html
SENATE BILL NO. 20
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 34 (MCL 211.34), as amended by 1986 PA 105, and by adding sections 34f and 34g.
the people of the state of michigan enact:
Sec. 34. (1) The county board of commissioners in each county shall meet in April each year to determine the county equalized value, which equalization shall must be completed and submitted along with the tabular statement required by section 5 of Act No. 44 of the Public Acts of 1911, being section 209.5 of the Michigan Compiled Laws, 1911 PA 44, MCL 209.5, to the state tax commission before the first Monday in May. The business which that the county board of commissioners may perform shall must be conducted at a public meeting of the county board of commissioners held in compliance with the open meetings act, Act No. 267 of the Public Acts of 1976, as amended, being sections 15.261 to 15.275 of the Michigan Compiled Laws. 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting shall must be given in the manner required by Act No. 267 of the Public Acts of 1976, as amended. the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Each year the county board of commissioners shall advise the local taxing units when if the state tax commission increases the equalized value of the county as established by the board of county board of commissioners and each taxing unit, other than a city, township, school district, intermediate school district, or community college district, shall immediately reduce its maximum authorized millage rate, as determined after any reduction caused by pursuant to section 34d, so that subsequent to after the increase ordered by the state tax commission pursuant to Act No. 44 of the Public Acts of 1911, as amended, being sections 209.1 to 209.8 of the Michigan Compiled Laws, 1911 PA 44, MCL 209.1 to 209.8, total property taxes levied for that unit shall do not exceed that which would have been levied for that unit at its maximum authorized millage rate, as determined after any reduction caused by pursuant to section 34d, if there had not been an increase in valuation by the state tax commission. If its state equalized valuation exceeds its assessed valuation by 5.0% or more in 1982 or by any amount in 1983 or any year thereafter, a city or township shall reduce its maximum authorized millage rate, as determined after any reduction caused by pursuant to section 34d, so that total property taxes levied for that unit do not exceed that which would have been levied based on its assessed valuation.
(2) The county board of commissioners shall examine the assessment rolls of the townships or cities and ascertain whether the real and personal property in the respective townships or cities has been equally and uniformly assessed at true cash value. If, on the examination, the county board of commissioners considers the assessments to be relatively unequal, it shall equalize the assessments by adding to or deducting from the valuation of the taxable property in a township or city an amount which that in the judgment of the county board of commissioners will produce a sum which represents representing the true cash value of that property, and the amount added to or deducted from the valuations in a township or city shall must be entered upon the records. The county board of commissioners and the state tax commission shall equalize real and personal property separately by adding to or deducting from the valuation of taxable real property, and by adding to or deducting from the valuation of taxable personal property in a township, city, or county, an amount which that will produce a sum which represents representing the proportion of true cash value established by the legislature. Beginning December 31, 1980, the county board of commissioners and the state tax commission shall equalize separately the following classes of real property by adding to or deducting from the valuation of agricultural, developmental, residential, commercial, industrial, and timber cutover taxable real property, and by adding to or deducting from the valuation of taxable personal property in a township, city, or county, an amount as that will produce a sum which represents representing the proportion of true cash value established by the legislature. The tax roll and the tax statement shall must clearly set forth the latest state equalized valuation for each item or property which shall be determined by using a separate factor for personal property and a separate factor for real property as equalized. Beginning December 31, 1980, the tax roll and the tax statement shall must clearly set forth the latest state equalized valuation for each item or property which shall be determined by using a separate factor for personal property and a separate factor for each classification for real property as equalized. Factors used in determining the state equalized valuation for real and personal property on the tax roll shall must be rounded up to not less than 4 decimal places. Equalized values for both real and personal property shall must be equalized uniformly at the same proportion of true cash value in the county. The county board of commissioners shall also cause to be entered upon its records the aggregate valuation of the taxable real and personal property of each township or city in its county as determined by the county board of commissioners. The county board of commissioners shall also make alterations in the description of any land property on the rolls as is necessary to render the descriptions conformable to the requirements of this act. After the rolls are equalized, each shall must be certified to by the chairperson and the clerk of the county board of commissioners and be delivered to the supervisor of the proper township or city, who shall file and keep the roll in his or her the supervisor's office.
(3) The county board of commissioners of a county shall establish and maintain a department to survey assessments and assist the county board of commissioners in the matter of equalization of assessments, and may employ in that department necessary technical and clerical personnel. which in its judgment are considered necessary. The personnel of the department shall must be under the direct supervision and control of a director of the tax or equalization department who may designate an employee of the department as his or her the director's deputy. The director of the county tax or equalization department shall must be appointed by the county board of commissioners. The county board of commissioners, through the department, may furnish assistance to local assessing officers in the performance of duties imposed upon those officers by this act, including the development and maintenance of accurate property descriptions, the discovery, listing, and valuation of properties for tax purposes, and the development and use of uniform valuation standards and techniques for the assessment of property. Subject to section 34f, the county board of commissioners shall also establish and maintain a county board of revision. All of the following apply to a county board of revision:
(a) The county board of revision shall serve the entire county and is responsible for the duties of a local board of review under this act insofar as they pertain to property tax matters described in section 34g(2) as to property that meets both of the following:
(i) Is classified under section 34c as commercial real property, industrial real property, developmental real property, commercial personal property, industrial personal property, or utility personal property.
(ii) Pursuant to section 24(1)(b), has an estimated assessed value of $600,000.00 or more.
(b) The jurisdiction of the county board of revision, as described in subdivision (a), is exclusive, and any final decision the county board of revision may make pursuant to section 34g(4)(f) is appealable directly to the circuit court of the county in which the subject property is located, as provided in section 34g(5).
(4) The supervisor of a township or, with the approval of the governing body, the certified assessor of a township or city, or the intermediate district board of education, or the board of education of an incorporated city or village aggrieved by the action of the county board of commissioners, in equalizing the valuations of the townships or cities of the county, may appeal from the determination to the state tax tribunal in the manner provided by law. An appeal from the determination by the county board of commissioners shall must be filed with the clerk of the tribunal by a written or printed petition which shall set that sets forth in detail the reasons for taking the appeal. The petition shall must be signed and sworn to by the supervisor, the certified assessor, or a majority of the members of the board of education taking the appeal, shall must show that a certain township, city, or school district has been discriminated against in the equalization, and shall pray must request that the state tax tribunal proceed at its earliest convenience to review the action from which the appeal is taken. The state tax tribunal shall, upon hearing, determine if in its judgment there is a showing that the equalization complained of is unfair, unjust, inequitable, or discriminatory. The state tax tribunal shall have has the same authority to consider and pass upon the action and determination of the county board of commissioners in equalizing valuations as it has to consider complaints relative to the assessment and taxation of property. The state tax tribunal may order the county board of commissioners to reconvene and to cause the assessment rolls of the county to be brought before it, may summon the commissioners of the county to give evidence in relation to the equalization, and may take further action and may make further investigation in the premises as it considers necessary. The state tax tribunal shall fix a valuation on all property of the county. If the state tax tribunal decides that the determination and equalization made by the county board of commissioners is correct, it shall take no further action. shall not be taken. If the state tax tribunal, after the hearing, decides that the valuations of the county were improperly equalized, it shall proceed to make deductions from, or additions to, the valuations of the respective townships, cities, or school districts as may be considered proper, and in so doing the tribunal shall have necessary, with the same powers as the county board of commissioners had in the first instance. The deductions or additions shall must decrease or increase the state equalized valuation of the local unit affected but shall must not increase or decrease the total state equalized valuation of the county in the case of an appeal under this section to the state tax tribunal. If the tax tribunal finds that the valuations of a class of property in a county were improperly equalized by that county and determines that the total value of that class of property in the county may not be at the level required by law, prior to before entry of a final order, the tax tribunal shall forward its findings and determination to the state tax commission. Within 90 days after receiving the findings and determination of the tax tribunal, the state tax commission shall determine whether the state equalized valuation of that class of property in the county was set at the level prescribed by law or should be revised to provide uniformity among the counties and shall enter an order consistent with the state tax commission's findings. The tax tribunal shall enter a final order based upon the revised state equalized valuation, if any, which that is adopted by the state tax commission. The state tax tribunal immediately after completing its revision of the equalization of the valuation of the several assessment districts shall report its action to the county board of commissioners and board of education if the board has instituted the appeal by filing its report with the clerk of the county board of commissioners. The action of the state tax tribunal in the premises shall constitute constitutes the equalization of the county for the tax year.
(5) For purposes of appeals pursuant to subsection (4) in 1981 only, an agent of a supervisor, including an assessor, shall be considered to have the authority to file and sign a petition for an appeal, and any otherwise timely submitted petition in 1981 by an agent of a supervisor shall be reviewed by the tribunal as if submitted by the supervisor.
Sec. 34f. (1) A county board of revision must consist of 3 members who serve for terms of 4 years beginning on January 1 of each odd-numbered year. Each member of the county board of revision must qualify by taking the constitutional oath of office within 10 days after the appointment. The county board of commissioners shall appoint to the county board of revision the director of the county tax or equalization department, an attorney, and another member. A member other than the director of the county tax or equalization department must meet both of the following qualifications to be appointed:
(a) By education, experience, or both, possess a substantial level of property tax expertise determined pursuant to specific qualifications prescribed by the state tax commission.
(b) Be certified by the state tax commission as eligible to serve as a member of the county board of revision.
(2) The county board of commissioners may fill any vacancy that occurs in the membership of the county board of revision. A member of the county board of commissioners is not eligible to serve on the county board of revision or to fill any vacancy on the county board of revision.
(3) Two of the 3 members of a county board of revision constitute a quorum for the transaction of business of the county board of revision. The duties and responsibilities of the county board of revision as provided in section 34g must be carried out by the entire membership of the county board of revision.
Sec. 34g. (1) To appeal any of the matters described in subsection (2), a petitioner must file a written request for an informal preliminary meeting, as described in subsection (3), with the county board of revision not later than 90 days after the petitioner receives a notice of a change in assessment under section 24c or a tax statement under section 44 based on that assessment, whichever occurs first. Both of the following apply to the filing of an appeal under this section:
(a) A person is not eligible to file an appeal under this section until all taxes owed on the property subject to the dispute are paid in full. If during the course of an appeal under this section it is determined that a petitioner has not complied with this subdivision, the petitioner's appeal must be dismissed with prejudice. This subdivision does not apply to a petitioner that is indigent, as that term is defined in section 1485 of the revised judicature act of 1961, 1961 PA 236, MCL 600.1485.
(b) The county may charge the petitioner a reasonable filing fee.
(2) An appeal under subsection (1) may raise a claim of error as to any of the following:
(a) The assessed or taxable value of the property, or both.
(b) The classification of the property.
(c) The exempt status of the property.
(d) The person assessed as liable for taxes or assessments on the property.
(e) A clerical, mathematical, or typographical mistake.
(f) The description of the property.
(g) The legality or constitutionality of a tax or assessment on the property.
(3) If the county board of revision receives a written request for an informal preliminary meeting under subsection (1), the county board of revision shall schedule, at a time during business hours that is convenient for the petitioner, an informal preliminary meeting to resolve the appeal. At the meeting, the petitioner shall provide documentation and information in support of each claim of error alleged under subsection (2). For a valuation dispute, if the petitioner relies on the income approach to valuation, the petitioner must provide at the meeting all of the documentation and information about income and expenses that the county board of revision requests. The county board of revision shall provide the petitioner with the property record card and valuation statement at the meeting. Documentation and information provided to the county board of revision under this subsection is not subject to disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. At the preliminary meeting, the county board of revision may do all of the following:
(a) Determine all factual and legal issues, including, but not limited to, the present use and the highest and best use of the property, the use for which the property was designed, and the classification of the property.
(b) Determine all sums in controversy and the particular issues to which they relate.
(c) Determine the consolidation of appeals for a formal dispositive hearing, the separation of issues, and the order in which the issues will be heard.
(d) Determine any evidence that must be provided to the county board of revision.
(e) Permit mediation of an appeal on the joint request of the parties.
(f) Grant other relief that it considers necessary or appropriate to dispose of the matter.
(4) If necessary, the county board of revision shall hold a formal dispositive hearing on the appeal not later than 90 days after the conclusion of the informal preliminary meeting held under subsection (3). The county board of revision shall, by mail, give at least 30 days' written notice of the date, time, and place fixed for the hearing to the petitioner and the assessor of the city or township where the property under appeal is located. All of the following apply to a hearing held under this subsection:
(a) At the hearing, the petitioner may present testimony and other evidence in support of its position regarding the matters on appeal. The township or city where the property under appeal is located may also present testimony and other evidence in support of its position regarding the matters on appeal. The county board of revision may adjourn or continue the hearing on a later date in order to make a physical inspection or consider the evidence presented.
(b) For an appeal as to the assessed value of property, the county board of revision shall presume the assessment on the assessment roll to be valid and shall not set aside that assessment unless the petitioner shows by a preponderance of evidence that the assessment is the result of an error of law or the adoption of wrong principles.
(c) From the evidence before it, the county board of revision shall determine all questions on appeal, including any questions as to the exempt status of the property and whether its assessed value is correct. If the assessed value is too high or low, the county board of revision shall lower or raise the assessed value accordingly and shall state on the record the correct assessed value and that the assessed value, as corrected, is reasonable in light of all the evidence presented.
(d) A majority of the members of the county board of revision must be present at the hearing for purposes of having a quorum needed to conduct the hearing, and a majority vote of the quorum is necessary to decide the appeal. If there is a tie vote, the prior determination of the city or township assessor must be sustained.
(e) The hearing must be video recorded at a reasonable cost to be shared by the parties.
(f) The county board of revision shall decide the appeal within 60 days after the hearing, shall provide its decision in writing or stated in the record, and shall include a concise statement of fact and conclusions of law, stated separately. A failure of the county board of revision to issue a decision in the time and manner provided in this subdivision must be considered a decision to deny the appeal.
(5) A party to an appeal aggrieved by a decision of the county board of revision under subsection (4)(f) may appeal that decision to the circuit court for the county in which the subject property is located, and the court shall review the decision of the county board of revision and hear evidence to determine whether the decision of the county board of revision was based on competent, material, and substantial evidence on the record and on correct valuation principles. The court shall review de novo whether the county board of revision erred as a matter of law. An appeal to the circuit court pursuant to this subsection must be filed within 35 days after the decision of the county board of revision under subsection (4)(f) was made.
(6) The state tax commission shall promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as may be needed concerning any further procedures governing the conduct of proceedings under this section.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 19 of the 102nd Legislature is enacted into law.
