Bill Text: MI SB0336 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property tax; exemptions; criteria for poverty exemptions; modify. Amends secs. 7u & 28 of 1893 PA 206 (MCL 211.7u & 211.28).
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2009-03-05 - Referred To Committee On Finance [SB0336 Detail]
Download: Michigan-2009-SB0336-Introduced.html
SENATE BILL No. 336
March 5, 2009, Introduced by Senators HUNTER and THOMAS and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7u and 28 (MCL 211.7u and 211.28), section 7u
as amended by 2003 PA 140 and section 28 as amended by 2006 PA 143.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
7u. (1) The principal residence of persons a person who,
in the judgment of the supervisor and board of review, by reason of
poverty,
are is unable to contribute toward the public charges is
eligible
for exemption in whole or in part from taxation the
collection of taxes under this act. This section does not apply to
the property of a corporation.
(2) To be eligible for exemption under this section, a person
shall do all of the following on an annual basis:
(a)
Be an owner of Own and occupy as a principal residence the
property for which an exemption is requested. An exemption under
this section is not available for a principal residence with a
taxable value greater than $200,000.00. A person is not eligible
for an exemption under this section if that person has an ownership
interest in any property other than the principal residence for
which an exemption is requested.
(b) File a claim with the supervisor or board of review on a
form
provided by the local assessing tax
collecting unit,
accompanied by federal and state income tax returns for all persons
residing in the principal residence, including any property tax
credit returns, filed in the immediately preceding year or in the
current year. The filing of a claim under this subsection
constitutes an appearance before the board of review for the
purpose of preserving the claimant's right to appeal the decision
of the board of review regarding the claim.
(c) Produce a valid driver's license or other form of
identification if requested by the supervisor or board of review.
(d) Produce a deed, land contract, or other evidence of
ownership of the property for which an exemption is requested if
required by the supervisor or board of review.
(e)
Meet the federal poverty guidelines updated published
annually in the federal register by the United States department of
health
and human services under its authority of section 673 of
subtitle
B of title VI of the omnibus budget reconciliation act of
1981,
Public Law 97-35, 42 U.S.C. to
revise the poverty line under
42 USC 9902, or alternative guidelines adopted by the governing
body
of the local assessing tax
collecting unit provided the
alternative guidelines do not provide income eligibility
requirements less than the federal guidelines.
(3) The application for an exemption under this section shall
be filed after January 1 but before the day prior to the last day
of the board of review.
(4)
The governing body of the local assessing tax collecting
unit shall determine and make available to the public the policy
and guidelines the local assessing unit uses for the granting of
exemptions under this section. The guidelines shall include but are
not
be limited to the specific income and asset levels of the
claimant and total household income and assets.
(5) The board of review shall follow the policy and guidelines
of
the local assessing tax
collecting unit in granting or denying
an exemption under this section unless the board of review
determines there are substantial and compelling reasons why there
should be a deviation from the policy and guidelines and the
substantial and compelling reasons are communicated in writing to
the claimant.
(6) A person who files a claim under this section is not
prohibited from also appealing the assessment on the property for
which that claim is made before the board of review in the same
year.
(7) A person who files a fraudulent claim for exemption under
this section is guilty of a misdemeanor punishable by a fine of not
more than $5,000.00 or imprisonment for not more than 1 year, or
both.
(8) The local tax collecting unit may review exemptions
granted under this section for the 5 immediately preceding years.
If the local tax collecting unit determines that an exemption under
this section was erroneously granted, 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. 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, penalty, or interest collected into the
state school aid fund. The denial shall be made on a form
prescribed by the department of treasury.
(9) (7)
As used in this section,
"principal residence" means
principal residence or qualified agricultural property as those
terms are defined in section 7dd.
Sec. 28. (1) Those electors of the township appointed by the
township board shall constitute a board of review for the township.
At least 2/3 of the members shall be property taxpayers of the
township. Members appointed to the board of review shall serve for
terms of 2 years beginning at noon on January 1 of each odd-
numbered year. Each member of the board of review shall qualify by
taking the constitutional oath of office within 10 days after
appointment. The township board may fill any vacancy that occurs in
the membership of the board of review. A member of the township
board is not eligible to serve on the board or to fill any vacancy.
A spouse, mother, father, sister, brother, son, or daughter,
including an adopted child, of the assessor is not eligible to
serve on the board or to fill any vacancy. A majority of the board
of review constitutes a quorum for the transaction of business, but
a lesser number may adjourn and a majority vote of those present
shall decide all questions. At least 2 members of a 3-member board
of review shall be present to conduct any business or hearings of
the board of review.
(2) The township board may appoint 3, 6, or 9 electors of the
township, who shall constitute a board of review for the township.
If 6 or 9 members are appointed as provided in this subsection, the
membership of the board of review shall be divided into board of
review committees consisting of 3 members each for the purpose of
hearing and deciding issues protested pursuant to section 30. Two
of the 3 members of a board of review committee constitute a quorum
for the transaction of the business of the committee. All meetings
of the members of the board of review and committees shall be held
during the same hours of the same day and at the same location.
(3) A township board may appoint not more than 2 alternate
members for the same term as regular members of the board of
review. Each alternate member shall be a property taxpayer of the
township. Alternate members shall qualify by taking the
constitutional oath of office within 10 days after appointment. The
township board may fill any vacancy that occurs in the alternate
membership of the board of review. A member of the township board
is not eligible to serve as an alternate member or to fill any
vacancy. A spouse, mother, father, sister, brother, son, or
daughter, including an adopted child, of the assessor is not
eligible to serve as an alternate member or to fill any vacancy. An
alternate member may be called to perform the duties of a regular
member of the board of review in the absence of a regular member.
An alternate member may also be called to perform the duties of a
regular member of the board of review for the purpose of reaching a
decision in issues protested in which a regular member has
abstained for reasons of conflict of interest.
(4)
The Subject to subsection
(5), the size, composition, and
manner of appointment of the board of review of a city may be
prescribed by the charter of a city. In the absence of or in place
of a charter provision and subject to subsection (5), the governing
body of the city, by ordinance, may establish the city board of
review in the same manner and for the same purposes as provided by
this section for townships.
(5) In addition to any other requirements prescribed by
charter or ordinance, a person shall meet all of the following
requirements in order to serve on the board of review for a city:
(a) Satisfactorily complete a criminal background check
conducted by the police department of that city.
(b) Have no outstanding liens for delinquent property taxes in
that city.
(c) Is not related to any member of the city council.
(6) A member of the board of review for a city shall not
participate in any decision regarding an exemption under section 7u
if that board of review member knows the person claiming the
exemption or knows any person related to or affiliated in any way
with the person claiming the exemption.
(7) (5)
A majority of the entire board of
review membership
shall indorse the assessment roll as provided in section 30. The
duties and responsibilities of the board contained in section 29
shall be carried out by the entire membership of the board of
review and a majority of the membership constitutes a quorum for
those purposes.
