SB-0520, As Passed Senate, June 17, 2003
SUBSTITUTE FOR
SENATE BILL NO. 520
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7cc, 7ee, 24c, and 53b (MCL 211.7cc,
211.7ee, 211.24c, and 211.53b), sections 7cc and 53b as amended
by 2002 PA 624, section 7ee as amended by 1996 PA 476, and
section 24c as amended by 2002 PA 620.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7cc. (1) A homestead is exempt from the tax levied by
2 a local school district for school operating purposes to the
3 extent provided under section 1211 of the revised school code,
4 1976 PA 451, MCL 380.1211, if an owner of that homestead claims
5 an exemption as provided in this section. Notwithstanding the
6 tax day provided in section 2, for taxes levied before January 1,
7 2004, the status of property as a homestead shall be determined
8 on the date an affidavit claiming an exemption is filed under
1 subsection (2). For taxes levied after December 31, 2003, the
2 status of property as a homestead shall be determined on the tax
3 day provided in section 2.
4 (2) An owner of property may claim an exemption under this
5 section by filing an affidavit on or before May 1 for taxes
6 levied before January 1, 2004 and the tax day as provided in
7 section 2 for taxes levied after December 31, 2003 with the local
8 tax collecting unit in which the property is located. The
9 affidavit shall state that the property is owned and occupied as
10 a homestead by that owner of the property on the date that the
11 affidavit is signed. The affidavit shall be on a form prescribed
12 by the department of
treasury. Beginning in 1995, 1 One copy
13 of the affidavit shall be retained by the owner, 1 copy shall be
14 retained by the local tax collecting unit until any appeal or
15 audit period under this act has expired, and 1 copy shall be
16 forwarded to the department of treasury pursuant to subsection
17 (4), together with all information submitted under subsection
18 (18) (25) for a cooperative housing corporation. Beginning
in
19 1995, the The affidavit shall require the owner claiming
the
20 exemption to indicate if that owner or that owner's spouse has
21 claimed another exemption on property in this state that is not
22 rescinded or a substantially similar exemption, deduction, or
23 credit on property in another state that is not rescinded. If
24 the affidavit requires an owner to include a social security
25 number, that owner's number is subject to the disclosure
26 restrictions in 1941 PA 122, MCL 205.1 to 205.31.
27 (3) A husband and wife who are required to file or who do
1 file a joint Michigan income tax return are entitled to not more
2 than 1 homestead exemption. A person is not entitled to a
3 homestead exemption under this section if any of the following
4 conditions occur:
5 (a) That person has claimed a substantially similar
6 exemption, deduction, or credit on property in another state that
7 is not rescinded.
8 (b) Subject to subdivision (a), that person or his or her
9 spouse owns property in a state other than this state for which
10 that person or his or her spouse claims an exemption, deduction,
11 or credit substantially similar to the homestead exemption
12 provided under this section, unless that person and his or her
13 spouse file separate income tax returns.
14 (c) That person has filed a nonresident Michigan income tax
15 return.
16 (d) That person has filed an income tax return in a state
17 other than this state as a resident.
18 (4) Upon receipt of an affidavit filed under subsection (2)
19 and unless the claim is
denied under subsection (6) this
20 section, the assessor shall exempt the property from the
21 collection of the tax levied by a local school district for
22 school operating purposes to the extent provided under section
23 1211 of the revised school code, 1976 PA 451, MCL 380.1211, as
24 provided in subsection (1) until December 31 of the year in which
25 the property is transferred or is no longer a homestead as
26 defined in section 7dd. The local tax collecting unit shall
27 forward copies of affidavits to the department of treasury
1 according to a schedule prescribed by the department of
2 treasury.
3 (5) Not more than 90 days after exempted property is no
4 longer used as a homestead by the owner claiming an exemption,
5 that owner shall rescind the claim of exemption by filing with
6 the local tax collecting unit a rescission form prescribed by the
7 department of treasury. Beginning
October 1, 1994, an An
owner
8 who fails to file a rescission as required by this subsection is
9 subject to a penalty of $5.00 per day for each separate failure
10 beginning after the 90 days have elapsed, up to a maximum of
11 $200.00. This penalty shall be collected under 1941 PA 122, MCL
12 205.1 to 205.31, and shall be deposited in the state school aid
13 fund established in section 11 of article IX of the state
14 constitution of 1963. This penalty may be waived by the
15 department of treasury.
16 (6) If the assessor of the local tax collecting unit believes
17 that the property for which an exemption is claimed is not the
18 homestead of the owner
claiming the exemption, effective for
19 taxes levied after
1994 the assessor may deny a new or
existing
20 claim by notifying the owner and the department of treasury in
21 writing of the reason for the denial and advising the owner that
22 the denial may be
appealed to the department of treasury
23 residential and small claims division of the Michigan tax
24 tribunal within 35 days after the date of the notice. The
25 assessor may deny a claim for exemption for the current year and
26 for the 3 immediately preceding calendar years. If the assessor
27 denies an existing claim for exemption, the assessor shall remove
1 the exemption of the property and, if the tax roll is in the
2 local tax collecting unit's possession, amend the tax roll to
3 reflect the denial and the local treasurer shall issue a
4 corrected tax bill for previously unpaid taxes with interest at
5 the rate of 1.25% per month and penalties computed from the date
6 the taxes were last payable without interest or penalty. If the
7 tax roll is in the county treasurer's possession, the tax roll
8 shall be amended to reflect the denial and the county treasurer
9 shall prepare and submit a supplemental tax bill for any
10 additional taxes, together with interest at the rate of 1.25% per
11 month and penalties computed from the date the taxes were last
12 payable without interest or penalty. Additional interest on any
13 tax set forth in a corrected or supplemental tax bill shall begin
14 to accrue 60 days after the date the corrected or supplemental
15 tax bill is issued at the rate of 1.25% per month. Taxes levied
16 in a corrected or supplemental tax bill shall be returned as
17 delinquent on the March 1 in the year immediately succeeding the
18 year in which the corrected or supplemental tax bill is issued.
19 If the assessor denies an existing claim for exemption, the
20 interest due shall be distributed as provided in subsection
21 (22). However, if the property has been transferred to a bona
22 fide purchaser before additional taxes were billed to the seller
23 as a result of the denial of a claim for exemption, the taxes,
24 interest, and penalties shall not be billed to the bona fide
25 purchaser, and the local tax collecting unit if the local tax
26 collecting unit has possession of the tax roll or the county
27 treasurer if the county has possession of the tax roll shall
1 notify the department of treasury of the amount of tax due,
2 interest, and penalties through the date of that notification.
3 The department of treasury shall then assess the owner who
4 claimed the homestead property tax exemption for the tax,
5 interest, and penalties accruing as a result of the denial of the
6 claim for exemption, if any, as for unpaid taxes provided under
7 1941 PA 122, MCL 205.1 to 205.31, and shall deposit any tax or
8 penalty collected into the state school aid fund and shall
9 distribute any interest collected as provided in subsection (22).
10 The denial shall be made on a form prescribed by the department
11 of treasury. If the
assessor of the local tax collecting unit
12 believes that the
property for which the exemption is claimed is
13 not the homestead of
the owner claiming the exemption, for taxes
14 levied in 1994 the
assessor may send a recommendation for denial
15 for any affidavit that
is forwarded to the department of treasury
16 stating the reasons
for the recommendation. If the
property for
17 which the assessor has denied a claim for exemption under this
18 subsection is located in a county in which the county treasurer
19 or the county equalization director have elected to audit
20 exemptions under subsection (9), the assessor shall notify the
21 county treasurer or the county equalization director of the
22 denial under this subsection.
23 (7) If the assessor of the local tax collecting unit believes
24 that the property for which the exemption is claimed is not the
25 homestead of the owner claiming the exemption and has not denied
26 the claim, for taxes
levied after 1994 the assessor shall
27 include a recommendation for denial with any affidavit that is
1 forwarded to the department of treasury or, for an existing
2 claim, shall send a recommendation for denial to the department
3 of treasury, stating the reasons for the recommendation.
4 (8) (7) The
department of treasury shall determine if the
5 property is the homestead of the owner claiming the exemption.
6 The department of treasury may review the validity of exemptions
7 for the current calendar year and for the 3 immediately preceding
8 calendar years. If the department of treasury determines that
9 the property is not the homestead of the owner claiming the
10 exemption, the department shall send a notice of that
11 determination to the local tax collecting unit and to the owner
12 of the property claiming the exemption, indicating that the claim
13 for exemption is denied, stating the reason for the denial, and
14 advising the owner claiming the exemption of the right to appeal
15 the determination to the department of treasury and what those
16 rights of appeal are. The department of treasury may issue a
17 notice denying a claim if an owner fails to respond within 30
18 days of receipt of a request for information from that
19 department. An owner may appeal the denial of a claim of
20 exemption to the department of treasury within 35 days of receipt
21 of the notice of denial. An appeal to the department of treasury
22 shall be conducted according to the provisions for an informal
23 conference in section 21 of 1941 PA 122, MCL 205.21. Within 10
24 days after acknowledging an appeal of a denial of a claim of
25 exemption, the department of treasury shall notify the assessor
26 and the treasurer for the county in which the property is located
27 that an appeal has been filed. Upon receipt of a notice that the
1 department of treasury has denied a claim for exemption, the
2 assessor shall remove the exemption of the property and, if the
3 tax roll is in the local tax collecting unit's possession, amend
4 the tax roll to reflect the denial and the local treasurer shall
5 issue a corrected tax bill for previously unpaid taxes with
6 interest at the rate of 1.25% per month and penalties computed
7 based on the interest
and penalties that would have accrued
8 from the date the taxes
were originally levied if there had not
9 been an exemption last payable without interest and penalty. If
10 the tax roll is in the county treasurer's possession, the tax
11 roll shall be amended to reflect the denial and the county
12 treasurer shall prepare and submit a supplemental tax bill for
13 any additional taxes,
together with any interest and penalties
14 interest at the rate of 1.25% per month and penalties computed
15 from the date the taxes were last payable without interest or
16 penalty. For taxes
levied in 1994 only, the county treasurer
17 shall waive any
interest and penalties due if the owner pays the
18 supplemental tax bill
not more than 30 days after the owner
19 receives the
supplemental tax bill. Interest and penalties shall
20 not be assessed for
any period before February 14,
1995.
21 Additional interest on any tax set forth in a corrected or
22 supplemental tax bill shall begin to accrue 60 days after the
23 date the corrected or supplemental tax bill is issued at the rate
24 of 1.25% per month. Taxes levied in a corrected or supplemental
25 tax bill shall be returned as delinquent on the March 1 in the
26 year immediately succeeding the year in which the corrected or
27 supplemental tax bill is issued. If the department of treasury
1 denies an existing claim for exemption, the interest due shall be
2 distributed as provided in subsection (22). However, if the
3 property has been transferred to a bona fide purchaser before
4 additional taxes were billed to the seller as a result of the
5 denial of a claim for exemption, the taxes, interest, and
6 penalties shall not be billed to the bona fide purchaser, and the
7 local tax collecting unit if the local tax collecting unit has
8 possession of the tax roll or the county treasurer if the county
9 has possession of the tax roll shall notify the department of
10 treasury of the amount of tax due and interest through the date
11 of that notification. The department of treasury shall then
12 assess the owner who claimed the homestead property tax exemption
13 for the tax and interest plus penalty accruing as a result of the
14 denial of the claim for exemption, if any, as for unpaid taxes
15 provided under 1941 PA 122, MCL 205.1 to 205.31, and shall
16 deposit any tax ,
interest, or penalty collected into the state
17 school aid fund and shall distribute any interest collected as
18 provided in subsection (22).
19 (8) An owner may
appeal a final decision of the department
20 of treasury to the
residential and small claims division of the
21 Michigan tax tribunal
within 35 days of that decision. An
22 assessor may appeal a
final decision of the department of
23 treasury to the
residential and small claims division of the
24 Michigan tax tribunal within
35 days of that decision if the
25 assessor denied the
exemption under subsection (6), or, for taxes
26 levied in 1994 only,
the assessor forwarded a recommendation for
27 denial to the
department of treasury under subsection (6). An
1 owner is not required
to pay the amount of tax in dispute in
2 order to appeal a
denial of a claim of exemption to the
3 department of treasury
or to receive a final determination of the
4 residential and small
claims division of the Michigan tax
5 tribunal. However,
interest and penalties except as provided in
6 subsection (7), if
any, shall accrue and be computed based on the
7 interest and penalties
that would have accrued from the date the
8 taxes were originally
levied as if there had not been an
9 exemption.
10 (9) A county may elect to audit the exemptions claimed under
11 this section in all local tax collecting units located in that
12 county as provided in this subsection. The election to audit
13 exemptions shall be made by the county treasurer, or by the
14 county equalization director with the concurrence by resolution
15 of the county board of commissioners. The initial election to
16 audit exemptions shall require an audit period of 2 years.
17 Subsequent elections to audit exemptions shall be made every 2
18 years and shall require 2 annual audit periods. An election to
19 audit exemptions shall be made by submitting an election to audit
20 form to the assessor of each local tax collecting unit in that
21 county and to the department of treasury not later than October 1
22 in the year in which an election to audit is made. The election
23 to audit form required under this subsection shall be in a form
24 prescribed by the department of treasury. If a county elects to
25 audit the exemptions claimed under this section, the department
26 of treasury may continue to review the validity of exemptions as
27 provided in subsection (8).
1 (10) If a county elects to audit the exemptions claimed under
2 this section as provided in subsection (9) and the county
3 treasurer or his or her designee or the county equalization
4 director or his or her designee believes that the property for
5 which an exemption is claimed is not the homestead of the owner
6 claiming the exemption, the county treasurer or his or her
7 designee or the county equalization director or his or her
8 designee may deny an existing claim by notifying the owner, the
9 assessor of the local tax collecting unit, and the department of
10 treasury in writing of the reason for the denial and advising the
11 owner that the denial may be appealed to the residential and
12 small claims division of the Michigan tax tribunal within 35 days
13 after the date of the notice. The county treasurer or his or her
14 designee or the county equalization director or his or her
15 designee may deny a claim for exemption for the current year and
16 for the 3 immediately preceding calendar years. If the county
17 treasurer or his or her designee or the county equalization
18 director or his or her designee denies an existing claim for
19 exemption, the county treasurer or his or her designee or the
20 county equalization director or his or her designee shall direct
21 the assessor of the local tax collecting unit in which the
22 property is located to remove the exemption of the property from
23 the assessment roll and, if the tax roll is in the local tax
24 collecting unit's possession, direct the assessor of the local
25 tax collecting unit to amend the tax roll to reflect the denial
26 and the treasurer of the local tax collecting unit shall issue a
27 corrected tax bill for previously unpaid taxes with interest at
1 the rate of 1.25% per month and penalties computed from the date
2 the taxes were last payable without interest and penalty. If the
3 tax roll is in the county treasurer's possession, the tax roll
4 shall be amended to reflect the denial and the county treasurer
5 shall prepare and submit a supplemental tax bill for any
6 additional taxes, together with interest at the rate of 1.25% per
7 month and penalties computed from the date the taxes were last
8 payable without interest or penalty. Additional interest on any
9 tax set forth in a corrected or supplemental tax bill shall begin
10 to accrue 60 days after the date the corrected or supplemental
11 tax bill is issued at the rate of 1.25% per month. Taxes levied
12 in a corrected or supplemental tax bill shall be returned as
13 delinquent on the March 1 in the year immediately succeeding the
14 year in which the corrected or supplemental tax bill is issued.
15 If the county treasurer or his or her designee or the county
16 equalization director or his or her designee denies an existing
17 claim for exemption, the interest due shall be distributed as
18 provided in subsection (22). However, if the property has been
19 transferred to a bona fide purchaser before additional taxes were
20 billed to the seller as a result of the denial of a claim for
21 exemption, the taxes, interest, and penalties shall not be billed
22 to the bona fide purchaser, and the local tax collecting unit if
23 the local tax collecting unit has possession of the tax roll or
24 the county treasurer if the county has possession of the tax roll
25 shall notify the department of treasury of the amount of tax due
26 and interest through the date of that notification. The
27 department of treasury shall then assess the owner who claimed
1 the homestead property tax exemption for the tax and interest
2 plus penalty accruing as a result of the denial of the claim for
3 exemption, if any, as for unpaid taxes provided under 1941 PA
4 122, MCL 205.1 to 205.31, and shall deposit any tax or penalty
5 collected into the state school aid fund and shall distribute any
6 interest collected as provided in subsection (22). The
7 department of treasury shall annually provide the county
8 treasurer or his or her designee or the county equalization
9 director or his or her designee a list of parcels of property
10 located in that county for which an exemption may be erroneously
11 claimed. The county treasurer or his or her designee or the
12 county equalization director or his or her designee shall forward
13 copies of the list provided by the department of treasury to each
14 assessor in each local tax collecting unit in that county within
15 10 days of receiving the list.
16 (11) An owner may appeal a denial by the assessor of the
17 local tax collecting unit under subsection (6), a final decision
18 of the department of treasury under subsection (8), or a denial
19 by the county treasurer or his or her designee or the county
20 equalization director or his or her designee under subsection
21 (10) to the residential and small claims division of the Michigan
22 tax tribunal within 35 days of that decision. An owner is not
23 required to pay the amount of tax in dispute in order to appeal a
24 denial of a claim of exemption to the department of treasury or
25 to receive a final determination of the residential and small
26 claims division of the Michigan tax tribunal. However, interest
27 at the rate of 1.25% per month and penalties shall accrue and be
1 computed from the date the taxes were last payable without
2 interest and penalty. If the residential and small claims
3 division of the Michigan tax tribunal grants an owner's appeal of
4 a denial and that owner has paid the interest due as a result of
5 a denial under subsection (6), (8), or (10), the interest
6 received after a distribution was made under subsection (22)
7 shall be refunded.
8 (12) For taxes levied after December 31, 2005, for each
9 county in which the county treasurer or the county equalization
10 director does not elect to audit the exemptions claimed under
11 this section as provided in subsection (9), the department of
12 treasury shall conduct an annual audit of exemptions claimed
13 under this section for the current calendar year.
14 (13) (9) An
affidavit filed by an owner for a homestead
15 rescinds all previous exemptions filed by that owner for any
16 other homestead. The department of treasury shall notify the
17 assessor of the local tax collecting unit in which the property
18 for which a previous exemption was claimed is located that the
19 previous exemption is rescinded by the subsequent affidavit.
20 Upon receipt of notice that an exemption is rescinded, the
21 assessor of the local tax collecting unit shall remove the
22 exemption effective December 31 of the year in which the property
23 is transferred or is no longer a homestead as defined in section
24 7dd. The assessor of the local tax collecting unit in which that
25 property is located shall notify the treasurer in possession of
26 the tax roll for a year for which the exemption is rescinded. If
27 the tax roll is in the local tax collecting unit's possession,
1 the tax roll shall be amended to reflect the rescission and the
2 local treasurer shall prepare and issue a corrected tax bill for
3 previously unpaid taxes with interest and penalties computed
4 based on the interest and penalties that would have accrued from
5 the date the taxes were originally levied if there had not been
6 an exemption for that year. If the tax roll is in the county
7 treasurer's possession, the tax roll shall be amended to reflect
8 the rescission and the county treasurer shall prepare and submit
9 a supplemental tax bill for any additional taxes, together with
10 any interest and penalties. However, if the property has been
11 transferred to a bona fide purchaser, the taxes, interest, and
12 penalties shall not be billed to the bona fide purchaser, and the
13 local tax collecting unit if the local tax collecting unit has
14 possession of the tax roll or the county treasurer if the county
15 has possession of the tax roll shall notify the department of
16 treasury of the amount of tax due and interest through the date
17 of that notification. The department of treasury shall then
18 assess the owner who received the homestead property tax
19 exemption when the property was not a homestead as defined in
20 section 7dd for the tax and interest plus penalty accruing, if
21 any, as for unpaid taxes provided under 1941 PA 122, MCL 205.1 to
22 205.31, and shall deposit any tax, interest, or penalty collected
23 into the state school aid fund.
24 (14) (10) An
owner of property for which a claim of
25 exemption is rescinded may appeal that rescission with either the
26 July or December board of review in either the year for which the
27 exemption is rescinded or in the immediately succeeding year. If
1 an appeal of a rescission of a claim for exemption is received
2 not later than 5 days prior to the date of the December board of
3 review, the local tax collecting unit shall convene a December
4 board of review and consider the appeal pursuant to this section
5 and section 53b. An owner of property for which a claim of
6 exemption is rescinded may appeal the decision of the board of
7 review to the residential and small claims division of the
8 Michigan tax tribunal within 35 days of that decision.
9 (15) (11) If
the homestead is part of a unit in a
10 multiple-unit dwelling or a dwelling unit in a multiple-purpose
11 structure, an owner shall claim an exemption for only that
12 portion of the total taxable value of the property used as the
13 homestead of that owner in a manner prescribed by the department
14 of treasury. If a portion of a parcel for which the owner claims
15 an exemption is used for a purpose other than as a homestead, the
16 owner shall claim an exemption for only that portion of the
17 taxable value of the property used as the homestead of that owner
18 in a manner prescribed by the department of treasury.
19 (16) (12) When
a county register of deeds records a
20 transfer of ownership of a property, he or she shall notify the
21 local tax collecting unit in which the property is located of the
22 transfer.
23 (17) (13) The
department of treasury shall make available
24 the affidavit forms and the forms to rescind an exemption, which
25 may be on the same form, to all city and township assessors,
26 county equalization officers, county registers of deeds, and
27 closing agents. A person who prepares a closing statement for
1 the sale of property shall provide affidavit and rescission forms
2 to the buyer and seller at the closing and, if requested by the
3 buyer or seller after execution by the buyer or seller, shall
4 file the forms with the local tax collecting unit in which the
5 property is located. If a closing statement preparer fails to
6 provide homestead exemption affidavit and rescission forms to the
7 buyer and seller, or fails to file the affidavit and rescission
8 forms with the local tax collecting unit if requested by the
9 buyer or seller, the buyer may appeal to the department of
10 treasury within 30 days of notice to the buyer that an exemption
11 was not recorded. If the department of treasury determines that
12 the buyer qualifies for the exemption, the department of treasury
13 shall notify the assessor of the local tax collecting unit that
14 the exemption is granted and the assessor of the local tax
15 collecting unit or, if the tax roll is in the possession of the
16 county treasurer, the county treasurer shall correct the tax roll
17 to reflect the exemption. This subsection does not create a
18 cause of action at law or in equity against a closing statement
19 preparer who fails to provide homestead exemption affidavit and
20 rescission forms to a buyer and seller or who fails to file the
21 affidavit and rescission forms with the local tax collecting unit
22 when requested to do so by the buyer or seller.
23 (18) (14) An
owner who owned and occupied a homestead on
24 May 1 for taxes levied before January 1, 2004 and the tax day as
25 provided in section 2 for taxes levied after December 31, 2003
26 for which the exemption was not on the tax roll may file an
27 appeal with the July board of review or December board of review
1 in the year for which the exemption was claimed or the
2 immediately succeeding 3 years. If an appeal of a claim for
3 exemption that was not on the tax roll is received not later than
4 5 days prior to the date of the December board of review, the
5 local tax collecting unit shall convene a December board of
6 review and consider the appeal pursuant to this section and
7 section 53b.
8 (19) (15) If
the assessor or treasurer of the local tax
9 collecting unit believes that the department of treasury
10 erroneously denied a claim for exemption, the assessor or
11 treasurer may submit written information supporting the owner's
12 claim for exemption to the department of treasury within 35 days
13 of the owner's receipt of the notice denying the claim for
14 exemption. If, after reviewing the information provided, the
15 department of treasury determines that the claim for exemption
16 was erroneously denied, the department of treasury shall grant
17 the exemption and the tax roll shall be amended to reflect the
18 exemption.
19 (20) (16) If
granting the exemption under this section
20 results in an overpayment of the tax, a rebate, including any
21 interest paid, shall be made to the taxpayer by the local tax
22 collecting unit if the local tax collecting unit has possession
23 of the tax roll or by the county treasurer if the county has
24 possession of the tax roll within 30 days of the date the
25 exemption is granted. The rebate shall be without interest.
26 (21) (17) If
an exemption under this section is erroneously
27 granted for an affidavit filed before October 1, 2003, an owner
Senate Bill No. 520 as amended June 17, 2003
1 may request in writing that the department of treasury withdraw
2 the exemption. The request to withdraw the exemption shall be
3 received not later than <<November 1, 2003>>. If an owner requests
4 that an exemption be withdrawn, the department of treasury shall
5 issue an order notifying the local assessor that the exemption
6 issued under this section has been denied based on the owner's
7 request. If an exemption is withdrawn, the property that had
8 been subject to that exemption shall be immediately placed on the
9 tax roll by the local tax collecting unit if the local tax
10 collecting unit has possession of the tax roll or by the county
11 treasurer if the county has possession of the tax roll as though
12 the exemption had not been granted. A corrected tax bill shall
13 be issued for the tax year being adjusted by the local tax
14 collecting unit if the local tax collecting unit has possession
15 of the tax roll or by the county treasurer if the county has
16 possession of the tax
roll. <<If Unless a denial has
been issued prior to July 1, 2003, if>> an owner requests that an
17 exemption under this
section be withdrawn <<before that owner is
18 contacted in
writing by either the local assessor or the
19 department
of treasury regarding that owner's eligibility for the
20 exemption>> and that owner pays the corrected tax bill issued under
21 this subsection within 30 days after the corrected tax bill is
22 issued, that owner is not liable for any penalty or interest on
23 the additional tax. An owner who pays a corrected tax bill
24 issued under this subsection more than 30 days after the
25 corrected tax bill is issued is liable for the penalties and
26 interest that would have accrued if the exemption had not been
27 granted from the date the taxes were originally levied.
1 (22) Subject to subsection (23), interest at the rate of
2 1.25% per month collected under subsection (6), (8), or (10)
3 shall be distributed as follows:
4 (a) If the assessor of the local tax collecting unit denies
5 the exemption under subsection (6), as follows:
6 (i) To the local tax collecting unit, 70%.
7 (ii) To the department of treasury, 10%.
8 (iii) To the county in which the property is located, 20%.
9 (b) If the department of treasury denies the exemption under
10 subsection (8), as follows:
11 (i) To the local tax collecting unit, 20%.
12 (ii) To the department of treasury, 70%.
13 (iii) To the county in which the property is located, 10%.
14 (c) If the county treasurer or his or her designee or the
15 county equalization director or his or her designee denies the
16 exemption under subsection (10), as follows:
17 (i) To the local tax collecting unit, 20%.
18 (ii) To the department of treasury, 10%.
19 (iii) To the county in which the property is located, 70%.
20 (23) Interest distributed under subsection (22) is subject to
21 the following conditions:
22 (a) Interest distributed to a county shall be deposited into
23 a restricted fund to be used solely for the administration of
24 homestead property tax exemptions. Money in that restricted fund
25 shall lapse to the county general fund on the December 31 in the
26 year 3 years after the first distribution of interest to the
27 county under subsection (22) and on each succeeding December 31
1 thereafter.
2 (b) Interest distributed to the department of treasury shall
3 be deposited into the homestead property tax exemption audit
4 fund, which is created within the state treasury. The state
5 treasurer may receive money or other assets from any source for
6 deposit into the fund. The state treasurer shall direct the
7 investment of the fund. The state treasurer shall credit to the
8 fund interest and earnings from fund investments. Money in the
9 fund shall be considered a work project account and at the close
10 of the fiscal year shall remain in the fund and shall not lapse
11 to the general fund. Money from the fund shall be expended, upon
12 appropriation, only for the purpose of auditing homestead
13 exemption affidavits.
14 (24) Interest distributed under subsection (22) is in
15 addition to and shall not affect the levy or collection of the
16 county property tax administration fee established under this
17 act.
18 (25) (18)
For tax years beginning on and after January 1,
19 1994, a A cooperative housing corporation is entitled
to a full
20 or partial exemption under this section for the tax year in which
21 the cooperative housing corporation files all of the following
22 with the local tax collecting unit in which the cooperative
23 housing corporation is
located if filed on or before May 1 of
24 the tax year, or for
the tax year following the year in which all
25 of the following are
filed if filed after May 1 of the tax year
26 for taxes levied before January 1, 2004 and the tax day as
27 provided in section 2 for taxes levied after December 31, 2003:
1 (a) An affidavit form.
2 (b) A statement of the total number of units owned by the
3 cooperative housing corporation and occupied as the principal
4 residence of a tenant stockholder as of the date of the filing
5 under this subsection.
6 (c) A list that includes the name, address, and social
7 security number of each tenant stockholder of the cooperative
8 housing corporation occupying a unit in the cooperative housing
9 corporation as his or her principal residence as of the date of
10 the filing under this subsection.
11 (d) A statement of the total number of units of the
12 cooperative housing corporation on which an exemption under this
13 section was claimed and that were transferred in the tax year
14 immediately preceding the tax year in which the filing under this
15 section was made.
16 (26) Before May 1, 2004 and before May 1, 2005, the treasurer
17 of each county shall forward to the department of education a
18 statement of the taxable value of each school district and
19 fraction of a school district within the county for the preceding
20 4 calendar years. This requirement is in addition to the
21 requirement set forth in section 151 of the state school aid act
22 of 1979, 1979 PA 94, MCL 388.1751.
23 Sec. 7ee. (1) Qualified agricultural property is exempt
24 from the tax levied by a local school district for school
25 operating purposes to the extent provided under section 1211 of
26 the revised school code, Act
No. 451 of the Public Acts of 1976,
27 being section 380.1211
of the Michigan Compiled Laws 1976
PA
1 451, MCL 380.1211, according to the provisions of this section.
2 (2) Qualified agricultural property that is classified as
3 agricultural under section 34c is exempt under subsection (1) and
4 the owner is not required to file an affidavit claiming an
5 exemption with the local tax collecting unit unless requested by
6 the assessor to determine whether the property includes
7 structures that are not exempt under this section. To claim an
8 exemption under subsection (1) for qualified agricultural
9 property that is not classified as agricultural under section
10 34c, the owner shall file an affidavit claiming the exemption
11 with the local tax collecting unit by May 1 for taxes levied
12 before January 1, 2004 and the tax day as provided in section 2
13 for taxes levied after December 31, 2003. However, if an
14 affidavit claiming a
homestead exemption on qualified
15 agricultural property
not classified as agricultural was not
16 filed by May 1 in 1994,
the owner shall file an affidavit under
17 this section by June
1, 1994.
18 (3) The affidavit shall be on a form prescribed by the
19 department of treasury.
20 (4) For property classified as agricultural, and upon receipt
21 of an affidavit filed under subsection (2) for property not
22 classified as agricultural, the assessor shall determine if the
23 property is qualified agricultural property and if so shall
24 exempt the property from the collection of the tax as provided in
25 subsection (1) until December 31 of the year in which the
26 property is no longer qualified agricultural property as defined
27 in section 7dd. An owner is required to file a new claim for
1 exemption on the same property as requested by the assessor under
2 subsection (2).
3 (5) Not more than 90 days after all or a portion of the
4 exempted property is no longer qualified agricultural property,
5 the owner shall rescind the exemption for the applicable portion
6 of the property by filing with the local tax collecting unit a
7 rescission form prescribed by the department of treasury.
8 Beginning October 1,
1994, an An owner who fails
to file a
9 rescission as required by this subsection is subject to a penalty
10 of $5.00 per day for each separate failure beginning after the 90
11 days have elapsed, up to a maximum of $200.00. This penalty
12 shall be collected under Act
No. 122 of the Public Acts of 1941,
13 being sections 205.1
to 205.31 of the Michigan Compiled Laws
14 1941 PA 122, MCL 205.1 to 205.31, and shall be deposited in the
15 state school aid fund established in section 11 of article IX of
16 the state constitution of 1963. This penalty may be waived by
17 the department of treasury.
18 (6) An owner of property that is qualified agricultural
19 property on May 1 for taxes levied before January 1, 2004 and the
20 tax day as provided in section 2 for taxes levied after December
21 31, 2003 for which an exemption was not on the tax roll may file
22 an appeal with the July or December board of review in the year
23 the exemption was claimed or the immediately succeeding year. An
24 owner of property that is qualified agricultural property on
25 May 1 for taxes levied before January 1, 2004 and the tax day as
26 provided in section 2 for taxes levied after December 31, 2003
27 for which an exemption was denied by the assessor in the year the
1 affidavit was filed, may file an appeal with the July board of
2 review for summer taxes or, if there is not a summer levy of
3 school operating taxes, with the December board of review.
4 (7) If the assessor of the local tax collecting unit believes
5 that the property for which an exemption has been granted is not
6 qualified agricultural
property, effective for taxes levied
7 after 1994, the assessor may deny or modify an existing
8 exemption by notifying the owner in writing at the time required
9 for providing a notice under section 24c. A taxpayer may appeal
10 the assessor's determination to the board of review meeting under
11 section 30. A decision of the board of review may be appealed to
12 the residential and small claims division of the Michigan tax
13 tribunal.
14 (8) If an exemption under this section is erroneously
15 granted, an owner may request in writing that the local tax
16 collecting unit withdraw the exemption. If an owner requests
17 that an exemption be withdrawn, the local assessor shall notify
18 the owner that the exemption issued under this section has been
19 denied based on that owner's request. If an exemption is
20 withdrawn, the property that had been subject to that exemption
21 shall be immediately placed on the tax roll by the local tax
22 collecting unit if the local tax collecting unit has possession
23 of the tax roll or by the county treasurer if the county has
24 possession of the tax roll as though the exemption had not been
25 granted. A corrected tax bill shall be issued for the tax year
26 being adjusted by the local tax collecting unit if the local tax
27 collecting unit has possession of the tax roll or by the county
1 treasurer if the county has possession of the tax roll. If an
2 owner requests that an exemption under this section be withdrawn
3 before that owner is contacted in writing by the local assessor
4 regarding that owner's eligibility for the exemption and that
5 owner pays the corrected tax bill issued under this subsection
6 within 30 days after the corrected tax bill is issued, that owner
7 is not liable for any penalty or interest on the additional tax.
8 An owner who pays a corrected tax bill issued under this
9 subsection more than 30 days after the corrected tax bill is
10 issued is liable for the penalties and interest that would have
11 accrued if the exemption had not been granted from the date the
12 taxes were originally levied.
13 (9) An owner of
qualified agricultural property for which an
14 exemption was on the
tax roll in 1995 and each year after 1995
15 and for which an
exemption was not on the tax roll in 1994 may
16 appeal to the July or
December board of review in 1997 to have an
17 exemption placed on
the 1994 tax roll if all of the following
18 conditions are
satisfied:
19 (a) The qualified
agricultural property was qualified
20 agricultural property
in 1994 and has been qualified agricultural
21 property since 1994.
22 (b) The owner
owned that qualified agricultural property on
23 May 1, 1994.
24 (c) If a claim of
exemption was denied in 1994, the owner did
25 not timely appeal that
denial as provided in this section.
26 (d) The owner has
owned that qualified agricultural property
27 since 1994.
1 (10) If the July
or December board of review in 1997 grants a
2 claim of exemption for
1994 under subsection (9), the county
3 treasurer with
possession of the tax roll being adjusted shall
4 amend the 1994 tax
roll to reflect the exemption and shall issue
5 a corrected tax bill
exempting that qualified agricultural
6 property from the tax
levied in 1994 for school operating
7 purposes to the extent
provided under section 1211 of Act No. 451
8 of the Public Acts of
1976 pursuant to subsection (1).
9 (11) If the July
or December board of review in 1997 denies
10 a claim of exemption
for 1994 under subsection (9), an owner may
11 appeal that denial to
the residential and small claims division
12 of the Michigan tax
tribunal within 35 days of that denial.
13 Sec. 24c. (1) The assessor shall give to each owner or
14 person or persons listed on the assessment roll of the property a
15 notice by first-class mail of an increase in the tentative state
16 equalized valuation or the tentative taxable value for the year.
17 The notice shall specify each parcel of property, the tentative
18 taxable value for the
current year, and , beginning in 1996,
19 the taxable value for the immediately preceding year. The notice
20 shall also specify the time and place of the meeting of the board
21 of review. Beginning
in 1996, the The notice shall also
22 specify the difference between the property's tentative taxable
23 value in the current year and the property's taxable value in the
24 immediately preceding year.
25 (2) The notice shall include, in addition to the information
26 required by subsection (1), all of the following:
27 (a) The state equalized valuation for the immediately
1 preceding year.
2 (b) The tentative state equalized valuation for the current
3 year.
4 (c) The net change between the tentative state equalized
5 valuation for the current year and the state equalized valuation
6 for the immediately preceding year.
7 (d) The classification of the property as defined by section
8 34c.
9 (e) The inflation rate for the immediately preceding year as
10 defined in section 34d.
11 (f) A statement provided by the state tax commission
12 explaining the relationship between state equalized valuation and
13 taxable value. Beginning
in 1996, if If the assessor believes
14 that a transfer of ownership has occurred in the immediately
15 preceding year, the statement shall state that the ownership was
16 transferred and that the taxable value of that property is the
17 same as the state equalized valuation of that property.
18 (3) When required by the income tax act of 1967, 1967 PA 281,
19 MCL 206.1 to 206.532, the assessment notice shall include or be
20 accompanied by information or forms prescribed by the income tax
21 act of 1967, 1967 PA 281, MCL 206.1 to 206.532.
22 (4) The assessment notice shall be addressed to the owner
23 according to the records of the assessor and mailed not less than
24 10 days before the meeting of the board of review. The failure
25 to send or receive an assessment notice does not invalidate an
26 assessment roll or an assessment on that property.
27 (5) The tentative state equalized valuation shall be
1 calculated by multiplying the assessment by the tentative
2 equalized valuation multiplier. If the assessor has made
3 assessment adjustments that would have changed the tentative
4 multiplier, the assessor may recalculate the multiplier for use
5 in the notice.
6 (6) The state tax commission shall prepare a model assessment
7 notice form that shall be made available to local units of
8 government.
9 (7) Beginning in 1995 through 2003, the assessment notice
10 under subsection (1) shall include the following statement:
11 "If you purchased your homestead after May 1 last
12 year, to claim the homestead exemption, if you have
13 not already done so, you are required to file an
14 affidavit before May 1.".
15 (8) Beginning in 2004, the assessment notice under subsection
16 (1) shall include the following statement:
17 "If you purchased your homestead after December 31
18 last year, to claim the homestead exemption for next
19 year, if you have not already done so, you are
20 required to file an affidavit on or before
21 December 31.".
22 (9) (8) For
taxes levied after December 31, 2003, the
23 assessment notice under subsection (1) shall separately state the
24 state equalized valuation and taxable value for any leasehold
25 improvements.
1 Sec. 53b. (1) If there has been a clerical error or a
2 mutual mistake of fact relative to the correct assessment
3 figures, the rate of taxation, or the mathematical computation
4 relating to the assessing of taxes, the clerical error or mutual
5 mistake of fact shall be verified by the local assessing officer
6 and approved by the board of review at a meeting held for the
7 purposes of this section on Tuesday following the second Monday
8 in December and, for summer property taxes, on Tuesday following
9 the third Monday in July. If there is not a levy of summer
10 property taxes, the board of review may meet for the purposes of
11 this section on Tuesday following the third Monday in July. If
12 approved, the board of review shall file an affidavit within 30
13 days relative to the clerical error or mutual mistake of fact
14 with the proper officials who are involved with the assessment
15 figures, rate of taxation, or mathematical computation and all
16 affected official records shall be corrected. If the clerical
17 error or mutual mistake of fact results in an overpayment or
18 underpayment, the rebate, including any interest paid, shall be
19 made to the taxpayer or the taxpayer shall be notified and
20 payment made within 30 days of the notice. A rebate shall be
21 without interest. The county treasurer may deduct the rebate
22 from the appropriate tax collecting unit's subsequent
23 distribution of taxes. The county treasurer shall bill to the
24 appropriate tax collecting unit the tax collecting unit's share
25 of taxes rebated. Except as otherwise provided in subsection
26 (6), a correction under this subsection may be made in the year
27 in which the error was made or in the following year only.
1 (2) Action pursuant to this section may be initiated by the
2 taxpayer or the assessing officer.
3 (3) The board of review meeting in July and December shall
4 meet only for the purpose described in subsection (1) and to hear
5 appeals provided for in sections 7u, 7cc, and 7ee. If an
6 exemption under section 7u is approved, the board of review shall
7 file an affidavit with the proper officials involved in the
8 assessment and collection of taxes and all affected official
9 records shall be corrected. If an appeal under section 7cc or
10 7ee results in a determination that an overpayment has been made,
11 the board of review shall file an affidavit and a rebate shall be
12 made at the times and in the manner provided in subsection (1).
13 Except as otherwise provided in sections 7cc and 7ee, a
14 correction under this subsection shall be made for the year in
15 which the appeal is made only. If the board of review grants an
16 exemption or provides a rebate for property under section 7cc or
17 7ee as provided in this subsection, the board of review shall
18 require the owner to execute the affidavit provided for in
19 section 7cc or 7ee and shall forward a copy of any section 7cc
20 affidavits to the department of treasury.
21 (4) If an exemption under section 7cc is granted by the board
22 of review under this section, the provisions of section 7cc(6)
23 through (8) (11)
apply. If an exemption under section 7cc is
24 not granted by the board of review under this section, the owner
25 may appeal that decision in writing to the department of treasury
26 within 35 days of the board of review's denial and the appeal
27 shall be conducted as provided in section 7cc(7).
1 (5) An owner or assessor may appeal a decision of the board
2 of review under this section regarding an exemption under section
3 7ee to the residential and small claims division of the Michigan
4 tax tribunal. An owner is not required to pay the amount of tax
5 in dispute in order to receive a final determination of the
6 residential and small claims division of the Michigan tax
7 tribunal. However, interest and penalties, if any, shall accrue
8 and be computed based on interest and penalties that would have
9 accrued from the date the taxes were originally levied as if
10 there had not been an exemption.
11 (6) A correction under this section that grants a homestead
12 exemption pursuant to
section 7cc(14) 7cc(21) may be made for
13 the year in which the appeal was filed and the 3 immediately
14 preceding tax years.