SENATE BILL NO. 20
January 17, 2023, Introduced by Senator MCBROOM and referred to the Committee on Finance,
Insurance, and Consumer Protection.
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:
1 Sec. 34. (1) The county board of commissioners in each county
2 shall meet in April each year to determine the county equalized
3 value, which equalization shall must be completed and submitted
4 along with the tabular statement required by section 5 of Act No.
5 44 of the Public Acts of 1911, being section 209.5 of the Michigan
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1 Compiled Laws, 1911 PA 44, MCL 209.5, to the state tax commission
2 before the first Monday in May. The business which that the county
3 board of commissioners may perform shall must be conducted at a
4 public meeting of the county board of commissioners held in
5 compliance with the open meetings act, Act No. 267 of the Public
6 Acts of 1976, as amended, being sections 15.261 to 15.275 of the
7 Michigan Compiled Laws. 1976 PA 267, MCL 15.261 to 15.275. Public
8 notice of the time, date, and place of the meeting shall must be
9 given in the manner required by Act No. 267 of the Public Acts of
10 1976, as amended. the open meetings act, 1976 PA 267, MCL 15.261 to
11 15.275. Each year the county board of commissioners shall advise
12 the local taxing units when if the state tax commission increases
13 the equalized value of the county as established by the board of
14 county board of commissioners and each taxing unit, other than a
15 city, township, school district, intermediate school district, or
16 community college district, shall immediately reduce its maximum
17 authorized millage rate, as determined after any reduction caused
18 by pursuant to section 34d, so that subsequent to after the
19 increase ordered by the state tax commission pursuant to Act No. 44
20 of the Public Acts of 1911, as amended, being sections 209.1 to
21 209.8 of the Michigan Compiled Laws, 1911 PA 44, MCL 209.1 to
22 209.8, total property taxes levied for that unit shall do not
23 exceed that which would have been levied for that unit at its
24 maximum authorized millage rate, as determined after any reduction
25 caused by pursuant to section 34d, if there had not been an
26 increase in valuation by the state tax commission. If its state
27 equalized valuation exceeds its assessed valuation by 5.0% or more
28 in 1982 or by any amount in 1983 or any year thereafter, a city or
29 township shall reduce its maximum authorized millage rate, as
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1 determined after any reduction caused by pursuant to section 34d,
2 so that total property taxes levied for that unit do not exceed
3 that which would have been levied based on its assessed valuation.
4 (2) The county board of commissioners shall examine the
5 assessment rolls of the townships or cities and ascertain whether
6 the real and personal property in the respective townships or
7 cities has been equally and uniformly assessed at true cash value.
8 If, on the examination, the county board of commissioners considers
9 the assessments to be relatively unequal, it shall equalize the
10 assessments by adding to or deducting from the valuation of the
11 taxable property in a township or city an amount which that in the
12 judgment of the county board of commissioners will produce a sum
13 which represents representing the true cash value of that property,
14 and the amount added to or deducted from the valuations in a
15 township or city shall must be entered upon the records. The county
16 board of commissioners and the state tax commission shall equalize
17 real and personal property separately by adding to or deducting
18 from the valuation of taxable real property, and by adding to or
19 deducting from the valuation of taxable personal property in a
20 township, city, or county, an amount which that will produce a sum
21 which represents representing the proportion of true cash value
22 established by the legislature. Beginning December 31, 1980, the
23 county board of commissioners and the state tax commission shall
24 equalize separately the following classes of real property by
25 adding to or deducting from the valuation of agricultural,
26 developmental, residential, commercial, industrial, and timber
27 cutover taxable real property, and by adding to or deducting from
28 the valuation of taxable personal property in a township, city, or
29 county, an amount as that will produce a sum which represents
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1 representing the proportion of true cash value established by the
2 legislature. The tax roll and the tax statement shall must clearly
3 set forth the latest state equalized valuation for each item or
4 property which shall be determined by using a separate factor for
5 personal property and a separate factor for real property as
6 equalized. Beginning December 31, 1980, the tax roll and the tax
7 statement shall must clearly set forth the latest state equalized
8 valuation for each item or property which shall be determined by
9 using a separate factor for personal property and a separate factor
10 for each classification for real property as equalized. Factors
11 used in determining the state equalized valuation for real and
12 personal property on the tax roll shall must be rounded up to not
13 less than 4 decimal places. Equalized values for both real and
14 personal property shall must be equalized uniformly at the same
15 proportion of true cash value in the county. The county board of
16 commissioners shall also cause to be entered upon its records the
17 aggregate valuation of the taxable real and personal property of
18 each township or city in its county as determined by the county
19 board of commissioners. The county board of commissioners shall
20 also make alterations in the description of any land property on
21 the rolls as is necessary to render the descriptions conformable to
22 the requirements of this act. After the rolls are equalized, each
23 shall must be certified to by the chairperson and the clerk of the
24 county board of commissioners and be delivered to the supervisor of
25 the proper township or city, who shall file and keep the roll in
26 his or her the supervisor's office.
27 (3) The county board of commissioners of a county shall
28 establish and maintain a department to survey assessments and
29 assist the county board of commissioners in the matter of
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1 equalization of assessments, and may employ in that department
2 necessary technical and clerical personnel. which in its judgment
3 are considered necessary. The personnel of the department shall
4 must be under the direct supervision and control of a director of
5 the tax or equalization department who may designate an employee of
6 the department as his or her the director's deputy. The director of
7 the county tax or equalization department shall must be appointed
8 by the county board of commissioners. The county board of
9 commissioners, through the department, may furnish assistance to
10 local assessing officers in the performance of duties imposed upon
11 those officers by this act, including the development and
12 maintenance of accurate property descriptions, the discovery,
13 listing, and valuation of properties for tax purposes, and the
14 development and use of uniform valuation standards and techniques
15 for the assessment of property. Subject to section 34f, the county
16 board of commissioners shall also establish and maintain a county
17 board of revision. All of the following apply to a county board of
18 revision:
19 (a) The county board of revision shall serve the entire county
20 and is responsible for the duties of a local board of review under
21 this act insofar as they pertain to property tax matters described
22 in section 34g(2) as to property that meets both of the following:
23 (i) Is classified under section 34c as commercial real
24 property, industrial real property, developmental real property,
25 commercial personal property, industrial personal property, or
26 utility personal property.
27 (ii) Pursuant to section 24(1)(b), has an estimated assessed
28 value of $600,000.00 or more.
29 (b) The jurisdiction of the county board of revision, as
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1 described in subdivision (a), is exclusive, and any final decision
2 the county board of revision may make pursuant to section 34g(4)(f)
3 is appealable directly to the circuit court of the county in which
4 the subject property is located, as provided in section 34g(5).
5 (4) The supervisor of a township or, with the approval of the
6 governing body, the certified assessor of a township or city, or
7 the intermediate district board of education, or the board of
8 education of an incorporated city or village aggrieved by the
9 action of the county board of commissioners, in equalizing the
10 valuations of the townships or cities of the county, may appeal
11 from the determination to the state tax tribunal in the manner
12 provided by law. An appeal from the determination by the county
13 board of commissioners shall must be filed with the clerk of the
14 tribunal by a written or printed petition which shall set that sets
15 forth in detail the reasons for taking the appeal. The petition
16 shall must be signed and sworn to by the supervisor, the certified
17 assessor, or a majority of the members of the board of education
18 taking the appeal, shall must show that a certain township, city,
19 or school district has been discriminated against in the
20 equalization, and shall pray must request that the state tax
21 tribunal proceed at its earliest convenience to review the action
22 from which the appeal is taken. The state tax tribunal shall, upon
23 hearing, determine if in its judgment there is a showing that the
24 equalization complained of is unfair, unjust, inequitable, or
25 discriminatory. The state tax tribunal shall have has the same
26 authority to consider and pass upon the action and determination of
27 the county board of commissioners in equalizing valuations as it
28 has to consider complaints relative to the assessment and taxation
29 of property. The state tax tribunal may order the county board of
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1 commissioners to reconvene and to cause the assessment rolls of the
2 county to be brought before it, may summon the commissioners of the
3 county to give evidence in relation to the equalization, and may
4 take further action and may make further investigation in the
5 premises as it considers necessary. The state tax tribunal shall
6 fix a valuation on all property of the county. If the state tax
7 tribunal decides that the determination and equalization made by
8 the county board of commissioners is correct, it shall take no
9 further action. shall not be taken. If the state tax tribunal,
10 after the hearing, decides that the valuations of the county were
11 improperly equalized, it shall proceed to make deductions from, or
12 additions to, the valuations of the respective townships, cities,
13 or school districts as may be considered proper, and in so doing
14 the tribunal shall have necessary, with the same powers as the
15 county board of commissioners had in the first instance. The
16 deductions or additions shall must decrease or increase the state
17 equalized valuation of the local unit affected but shall must not
18 increase or decrease the total state equalized valuation of the
19 county in the case of an appeal under this section to the state tax
20 tribunal. If the tax tribunal finds that the valuations of a class
21 of property in a county were improperly equalized by that county
22 and determines that the total value of that class of property in
23 the county may not be at the level required by law, prior to before
24 entry of a final order, the tax tribunal shall forward its findings
25 and determination to the state tax commission. Within 90 days after
26 receiving the findings and determination of the tax tribunal, the
27 state tax commission shall determine whether the state equalized
28 valuation of that class of property in the county was set at the
29 level prescribed by law or should be revised to provide uniformity
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1 among the counties and shall enter an order consistent with the
2 state tax commission's findings. The tax tribunal shall enter a
3 final order based upon the revised state equalized valuation, if
4 any, which that is adopted by the state tax commission. The state
5 tax tribunal immediately after completing its revision of the
6 equalization of the valuation of the several assessment districts
7 shall report its action to the county board of commissioners and
8 board of education if the board has instituted the appeal by filing
9 its report with the clerk of the county board of commissioners. The
10 action of the state tax tribunal in the premises shall constitute
11 constitutes the equalization of the county for the tax year.
12 (5) For purposes of appeals pursuant to subsection (4) in 1981
13 only, an agent of a supervisor, including an assessor, shall be
14 considered to have the authority to file and sign a petition for an
15 appeal, and any otherwise timely submitted petition in 1981 by an
16 agent of a supervisor shall be reviewed by the tribunal as if
17 submitted by the supervisor.
18 Sec. 34f. (1) A county board of revision must consist of 3
19 members who serve for terms of 4 years beginning on January 1 of
20 each odd-numbered year. Each member of the county board of revision
21 must qualify by taking the constitutional oath of office within 10
22 days after the appointment. The county board of commissioners shall
23 appoint to the county board of revision the director of the county
24 tax or equalization department, an attorney, and another member. A
25 member other than the director of the county tax or equalization
26 department must meet both of the following qualifications to be
27 appointed:
28 (a) By education, experience, or both, possess a substantial
29 level of property tax expertise determined pursuant to specific
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1 qualifications prescribed by the state tax commission.
2 (b) Be certified by the state tax commission as eligible to
3 serve as a member of the county board of revision.
4 (2) The county board of commissioners may fill any vacancy
5 that occurs in the membership of the county board of revision. A
6 member of the county board of commissioners is not eligible to
7 serve on the county board of revision or to fill any vacancy on the
8 county board of revision.
9 (3) Two of the 3 members of a county board of revision
10 constitute a quorum for the transaction of business of the county
11 board of revision. The duties and responsibilities of the county
12 board of revision as provided in section 34g must be carried out by
13 the entire membership of the county board of revision.
14 Sec. 34g. (1) To appeal any of the matters described in
15 subsection (2), a petitioner must file a written request for an
16 informal preliminary meeting, as described in subsection (3), with
17 the county board of revision not later than 90 days after the
18 petitioner receives a notice of a change in assessment under
19 section 24c or a tax statement under section 44 based on that
20 assessment, whichever occurs first. Both of the following apply to
21 the filing of an appeal under this section:
22 (a) A person is not eligible to file an appeal under this
23 section until all taxes owed on the property subject to the dispute
24 are paid in full. If during the course of an appeal under this
25 section it is determined that a petitioner has not complied with
26 this subdivision, the petitioner's appeal must be dismissed with
27 prejudice. This subdivision does not apply to a petitioner that is
28 indigent, as that term is defined in section 1485 of the revised
29 judicature act of 1961, 1961 PA 236, MCL 600.1485.
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1 (b) The county may charge the petitioner a reasonable filing
2 fee.
3 (2) An appeal under subsection (1) may raise a claim of error
4 as to any of the following:
5 (a) The assessed or taxable value of the property, or both.
6 (b) The classification of the property.
7 (c) The exempt status of the property.
8 (d) The person assessed as liable for taxes or assessments on
9 the property.
10 (e) A clerical, mathematical, or typographical mistake.
11 (f) The description of the property.
12 (g) The legality or constitutionality