HB 6277

HOUSE BILL NO. 6277
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 27a and 53b (MCL 211.27a and
211.53b), section 27a as amended by 2016 PA 375 and section 53b as amended by
2023 PA 191.
the people of the state of michigan enact:
Sec. 27a. (1) Except as otherwise provided in this
section, property shall must be assessed at 50% of its true cash value under
section 3 of article IX of the state constitution of 1963.
(2) Except as
otherwise provided in subsection (3), for taxes levied in 1995 and for each
year after 1995, the taxable value of each parcel of property is the lesser of
the following:
(a) The property's
taxable value in the immediately preceding year minus any losses, multiplied by
the lesser of 1.05 or the inflation rate, plus all additions. For taxes levied
in 1995, the property's taxable value in the immediately preceding year is the
property's state equalized valuation in 1994.
(b) The property's
current state equalized valuation.
(3) Upon a transfer
of ownership of property after 1994, the property's taxable value for the
calendar year following the year of the transfer is the property's state
equalized valuation for the calendar year following the transfer.
(4) If the taxable
value of property is adjusted under subsection (3), a subsequent increase in
the property's taxable value is subject to the limitation set forth in
subsection (2) until a subsequent transfer of ownership occurs. If the taxable
value of property is adjusted under subsection (3) and the assessor determines
that there had not been a transfer of ownership, the
taxable value of the property the assessor shall
be adjusted at the July or December board of
review. Notwithstanding the limitation provided in section 53b(1) on the number
of years for which a correction may be made, the July or December board of
review immediately correct the taxable value to
reflect the limitation of subsection (2) and notify the local tax collecting
unit in control of the appropriate tax rolls of the change. A local tax
collecting unit may adjust the taxable value of property under this subsection
for the current year and for the 3 immediately any preceding
calendar years. A corrected tax bill shall must be issued for each tax year for which the
taxable value is adjusted corrected by the local tax collecting unit if the
local tax collecting unit has possession of the tax roll or by the county
treasurer if the county has possession of the tax roll. For purposes of section 53b, an adjustment under this
subsection shall be considered the correction of a clerical error.
(5) Assessment of
property, as required in this section and section 27, is inapplicable to the
assessment of property subject to the levy of ad valorem taxes within voted tax
limitation increases to pay principal and interest on limited tax bonds issued
by any governmental unit, including a county, township, community college
district, or school district, before January 1, 1964, if the assessment
required to be made under this act would be less than the assessment as state
equalized prevailing on the property at the time of the issuance of the bonds.
This inapplicability continues until levy of taxes to pay principal and
interest on the bonds is no longer required. The assessment of property
required by this act applies for all other purposes.
(6) As used in this
act, "transfer of ownership" means the conveyance of title to or a
present interest in property, including the beneficial use of the property, the
value of which is substantially equal to the value of the fee interest. Transfer
of ownership of property includes, but is not limited to, the following:
(a) A conveyance by
deed.
(b) A conveyance by
land contract. The taxable value of property conveyed by a land contract
executed after December 31, 1994 shall must be adjusted under subsection (3) for the
calendar year following the year in which the contract is entered into and shall must not be
subsequently adjusted under subsection (3) when the deed conveying title to the
property is recorded in the office of the register of deeds in the county in
which the property is located.
(c) A conveyance to
a trust after December 31, 1994, except under any of the following conditions:
(i) If the settlor or the settlor's spouse,
or both, conveys the property to the trust and the sole present beneficiary or
beneficiaries are the settlor or the settlor's spouse, or both.
(ii) Beginning December 31, 2014, for
residential real property, if the settlor or the settlor's spouse, or both,
conveys the residential real property to the trust and the sole present
beneficiary or beneficiaries are the settlor's or the settlor's spouse's
mother, father, brother, sister, son, daughter, adopted son, adopted daughter,
grandson, or granddaughter and the residential real property is not used for
any commercial purpose following the conveyance. Upon request by the department
of treasury or the assessor, the sole present beneficiary or beneficiaries
shall furnish proof within 30 days that the sole present beneficiary or
beneficiaries meet the requirements of this subparagraph. If a present
beneficiary fails to comply with a request by the department of treasury or
assessor under this subparagraph, that present beneficiary is subject to a fine
of $200.00.
(d) A conveyance by
distribution from a trust, except under any of the following conditions:
(i) If the distributee is the sole present
beneficiary or the spouse of the sole present beneficiary, or both.
(ii) Beginning December 31, 2014, a
distribution of residential real property if the distributee is the settlor's
or the settlor's spouse's mother, father, brother, sister, son, daughter,
adopted son, adopted daughter, grandson, or granddaughter and the residential
real property is not used for any commercial purpose following the conveyance.
Upon request by the department of treasury or the assessor, the sole present
beneficiary or beneficiaries shall furnish proof within 30 days that the sole
present beneficiary or beneficiaries meet the requirements of this
subparagraph. If a present beneficiary fails to comply with a request by the
department of treasury or assessor under this subparagraph, that present
beneficiary is subject to a fine of $200.00.
(e) A change in the
sole present beneficiary or beneficiaries of a trust, except under any of the
following conditions:
(i) A change that adds or substitutes the
spouse of the sole present beneficiary.
(ii) Beginning December 31, 2014, for
residential real property, a change that adds or substitutes the settlor's or
the settlor's spouse's mother, father, brother, sister, son, daughter, adopted
son, adopted daughter, grandson, or granddaughter and the residential real
property is not used for any commercial purpose following the conveyance. Upon
request by the department of treasury or the assessor, the sole present
beneficiary or beneficiaries shall furnish proof within 30 days that the sole
present beneficiary or beneficiaries meet the requirements of this
subparagraph. If a present beneficiary fails to comply with a request by the
department of treasury or assessor under this subparagraph, that present
beneficiary is subject to a fine of $200.00.
(f) A conveyance by
distribution under a will or by intestate succession, except under any of the
following conditions:
(i) If the distributee is the decedent's
spouse.
(ii) Beginning December 31, 2014, for
residential real property, if the distributee is the decedent's or the
decedent's spouse's mother, father, brother, sister, son, daughter, adopted
son, adopted daughter, grandson, or granddaughter and the residential real
property is not used for any commercial purpose following the conveyance. Upon
request by the department of treasury or the assessor, the sole present
beneficiary or beneficiaries shall furnish proof within 30 days that the sole
present beneficiary or beneficiaries meet the requirements of this
subparagraph. If a present beneficiary fails to comply with a request by the
department of treasury or assessor under this subparagraph, that present
beneficiary is subject to a fine of $200.00.
(g) A conveyance by
lease if the total duration of the lease, including the initial term and all
options for renewal, is more than 35 years or the lease grants the lessee a
bargain purchase option. As used in this subdivision, "bargain purchase
option" means the right to purchase the property at the termination of the
lease for not more than 80% of the property's projected true cash value at the
termination of the lease. After December 31, 1994, the taxable value of
property conveyed by a lease with a total duration of more than 35 years or
with a bargain purchase option shall must be adjusted under subsection (3) for the
calendar year following the year in which the lease is entered into. This
subdivision does not apply to personal property except buildings described in
section 14(6) and personal property described in section 8(h), (i), and (j).
This subdivision does not apply to that portion of the property not subject to
the leasehold interest conveyed.
(h) Except as
otherwise provided in this subdivision, a conveyance of an ownership interest
in a corporation, partnership, sole proprietorship, limited liability company,
limited liability partnership, or other legal entity if the ownership interest
conveyed is more than 50% of the corporation, partnership, sole proprietorship,
limited liability company, limited liability partnership, or other legal
entity. Unless notification is provided under subsection (10), the corporation,
partnership, sole proprietorship, limited liability company, limited liability
partnership, or other legal entity shall notify the assessing officer on a form
provided by the state tax commission not more than 45 days after a conveyance
of an ownership interest that constitutes a transfer of ownership under this
subdivision. Both of the following apply to a corporation subject to 1897 PA
230, MCL 455.1 to 455.24:
(i) A transfer of stock of the corporation
is a transfer of ownership only with respect to the real property that is
assessed to the transferor lessee stockholder.
(ii) A cumulative conveyance of more than 50%
of the corporation's stock does not constitute a transfer of ownership of the
corporation's real property.
(i) A transfer of
property held as a tenancy in common, except that portion of the property not
subject to the ownership interest conveyed.
(j) A conveyance of
an ownership interest in a cooperative housing corporation, except that portion
of the property not subject to the ownership interest conveyed.
(k) Notwithstanding
the provisions of section 7ee(5), at the request of a property owner, an
assessor's establishment of a separate tax parcel for a portion of a parcel
that ceases to be qualified agricultural property but is not subject to a land
division under the land division act, 1967 PA 288, MCL 560.101 to 560.293, or
any local ordinance. For purposes of this subdivision, a transfer of ownership
occurs only as to that portion of the parcel established as a separate tax
parcel and only that portion shall must have its taxable value adjusted under subsection
(3) and shall be is
subject to the recapture tax provided for under the agricultural
property recapture act, 2000 PA 261, MCL 211.1001 to 211.1007. The adjustment
under subsection (3) shall must be made as of the December 31 in the year that
the portion of the parcel established as a separate tax parcel ceases to be
qualified agricultural property. A portion of a parcel subject to this
subdivision is considered a separate tax parcel only for those purposes
described in this subdivision.
(7) Transfer of
ownership does not include the following:
(a) The transfer of
property from 1 spouse to the other spouse or from a decedent to a surviving
spouse.
(b) A transfer from
a husband, a wife, or a married couple 1 or both spouses creating or disjoining a tenancy by
the entireties in the grantors or the grantor and his
or her the grantor's spouse.
(c) Subject to
subdivision (d), a transfer of that portion of property subject to a life
estate or life lease retained by the transferor, until expiration or
termination of the life estate or life lease. That portion of property
transferred that is not subject to a life lease shall
must be adjusted under subsection (3).
(d) Beginning
December 31, 2014, a transfer of that portion of residential real property that
had been subject to a life estate or life lease retained by the transferor
resulting from expiration or termination of that life estate or life lease, if
the transferee is the transferor's or transferor's spouse's mother, father,
brother, sister, son, daughter, adopted son, adopted daughter, grandson, or
granddaughter and the residential real property is not used for any commercial
purpose following the transfer. Upon request by the department of treasury or
the assessor, the transferee shall furnish proof within 30 days that the
transferee meets the requirements of this subdivision. If a transferee fails to
comply with a request by the department of treasury or assessor under this
subdivision, that transferee is subject to a fine of $200.00.
(e) A transfer
through foreclosure or forfeiture of a recorded instrument under chapter 31,
32, or 57 of the revised judicature act of 1961, 1961 PA 236, MCL 600.3101 to
600.3285 and MCL 600.5701 to 600.5759, or through deed or conveyance in lieu of
a foreclosure or forfeiture, until the mortgagee or land contract vendor
subsequently transfers the property. If a mortgagee does not transfer the
property within 1 year of the expiration of any applicable redemption period,
the property shall must
be adjusted under subsection (3).
(f) A transfer by
redemption by the person to whom taxes are assessed of property previously sold
for delinquent taxes.
(g) A conveyance to
a trust if the settlor or the settlor's spouse, or both, conveys the property
to the trust and any of the following conditions are satisfied:
(i) If the sole present beneficiary of the
trust is the settlor or the settlor's spouse, or both.
(ii) Beginning December 31, 2014, for
residential real property, if the sole present beneficiary of the trust is the
settlor's or the settlor's spouse's mother, father, brother, sister, son,
daughter, adopted son, adopted daughter, grandson, or granddaughter and the
residential real property is not used for any commercial purpose following the
conveyance. Upon request by the department of treasury or the assessor, the
sole present beneficiary or beneficiaries shall furnish proof within 30 days
that the sole present beneficiary or beneficiaries meet the requirements of
this subparagraph. If a present beneficiary fails to comply with a request by
the department of treasury or assessor under this subparagraph, that present
beneficiary is subject to a fine of $200.00.
(h) A transfer
pursuant to a judgment or order of a court of record making or ordering a
transfer, unless a specific monetary consideration is specified or ordered by
the court for the transfer.
(i) A transfer
creating or terminating a joint tenancy between 2 or more persons if at least 1
of the persons was an original owner of the property before the joint tenancy
was initially created and, if the property is held as a joint tenancy at the
time of conveyance, at least 1 of the persons was a joint tenant when the joint
tenancy was initially created and that person has remained a joint tenant since
the joint tenancy was initially created. A joint owner at the time of the last
transfer of ownership of the property is an original owner of the property. For
purposes of this subdivision, a person is an original owner of property owned
by that person's spouse.
(j) A transfer for
security or an assignment or discharge of a security interest.
(k) A transfer of
real property or other ownership interests among members of an affiliated
group. As used in this subsection, "affiliated group" means 1 or more
corporations connected by stock ownership to a common parent corporation. Upon
request by the state tax commission, a corporation shall furnish proof within
45 days that a transfer meets the requirements of this subdivision. A
corporation that fails to comply with a request by the state tax commission
under this subdivision is subject to a fine of $200.00.
(l) Normal public trading of shares of stock
or other ownership interests that, over any period of time, cumulatively
represent more than 50% of the total ownership interest in a corporation or
other legal entity and are traded in multiple transactions involving unrelated
individuals, institutions, or other legal entities.
(m) A transfer of
real property or other ownership interests among corporations, partnerships,
limited liability companies, limited liability partnerships, or other legal
entities if the entities involved are commonly controlled. Upon request by the
state tax commission, a corporation, partnership, limited liability company,
limited liability partnership, or other legal entity shall furnish proof within
45 days that a transfer meets the requirements of this subdivision. A
corporation, partnership, limited liability company, limited liability
partnership, or other legal entity that fails to comply with a request by the
state tax commission under this subdivision is subject to a fine of $200.00.
(n) A direct or
indirect transfer of real property or other ownership interests resulting from
a transaction that qualifies as a tax-free reorganization under section 368 of
the internal revenue code, 26 USC 368. Upon request by the state tax
commission, a property owner shall furnish proof within 45 days that a transfer
meets the requirements of this subdivision. A property owner who fails to
comply with a request by the state tax commission under this subdivision is
subject to a fine of $200.00.
(o) Except as
provided in subsection (6)(k), a transfer of qualified agricultural property,
if the person to whom the qualified agricultural property is transferred files
an affidavit with the assessor of the local tax collecting unit in which the
qualified agricultural property is located and with the register of deeds for
the county in which the qualified agricultural property is located attesting
that the qualified agricultural property will remain qualified agricultural
property. The affidavit under this subdivision shall
must be in a form prescribed by the
department of treasury. An owner of qualified agricultural property shall
inform a prospective buyer of that qualified agricultural property that the
qualified agricultural property is subject to the recapture tax provided in the
agricultural property recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if
the qualified agricultural property is converted by a change in use, as that
term is defined in section 2 of the agricultural property recapture act, 2000
PA 261, MCL 211.1002. If property ceases to be qualified agricultural property
at any time after a transfer subject to this subdivision, all of the following shall occur:apply:
(i) The taxable value of that property, or,
if subsection (6)(k) applies, a portion of it established as a separate tax
parcel, shall must be
adjusted under subsection (3) as of the December 31 in the year that the
property, or, if subsection (6)(k) applies, a portion of it established as a
separate tax parcel, ceases to be qualified agricultural property.
(ii) The property, or, if subsection (6)(k)
applies, a portion of it established as a separate tax parcel, is subject to
the recapture tax provided for under the agricultural property recapture act,
2000 PA 261, MCL 211.1001 to 211.1007.
(p) A transfer of
qualified forest property, if the person to whom the qualified forest property
is transferred files a qualified forest taxable value affidavit with the
assessor of the local tax collecting unit in which the qualified forest
property is located and with the register of deeds for the county in which the
qualified forest property is located attesting that the qualified forest
property will remain qualified forest property. The qualified forest taxable
value affidavit under this subdivision shall must be in a form prescribed by the department of
agriculture and rural development. The qualified forest taxable value affidavit
shall must include
a legal description of the qualified forest property, the name of the new
property owner, the year the transfer of the property occurred, a statement
indicating that the property owner is attesting that the property for which the
exemption is claimed is qualified forest property and will be managed according
to the approved forest management plan, and any other information pertinent to
the parcel and the property owner. The property owner shall provide a copy of
the qualified forest taxable value affidavit to the department. The department
shall provide 1 copy of the qualified forest taxable value affidavit to the
local tax collecting unit, 1 copy to the conservation district, and 1 copy to
the department of treasury. These copies may be sent electronically. The
exception to the recognition of a transfer of ownership, as herein stated, provided
in this subdivision, extends to the land only of the qualified forest
property. If qualified forest property is improved by buildings, structures, or
land improvements, then those improvements shall must be recognized as a transfer of ownership, in
accordance with the provisions of section 7jj[1]. An owner of qualified forest
property shall inform a prospective buyer of that qualified forest property
that the qualified forest property is subject to the recapture tax provided in
the qualified forest property recapture tax act, 2006 PA 379, MCL 211.1031 to
211.1036, if the qualified forest property is converted by a change in use, as
that term is defined in section 2 of the qualified forest property recapture
tax act, 2006 PA 379, MCL 211.1032. If property ceases to be qualified forest
property at any time after being transferred, all of the following shall occur:apply:
(i) The taxable value of that property shall must be
adjusted under subsection (3) as of the December 31 in the year that the
property ceases to be qualified forest property, except to the extent that the
transfer of the qualified forest property would not have been considered a
transfer of ownership under this subsection.
(ii) Except as otherwise provided in
subparagraph (iii), the property is subject to the recapture tax provided for
under the qualified forest property recapture tax act, 2006 PA 379, MCL
211.1031 to 211.1036.
(iii) Beginning June 1, 2013 and ending
November 30, 2013, owners of property enrolled as qualified forest property
before January 1, 2013 may execute a new qualified forest taxable value
affidavit with the department of agriculture and rural development. If a
landowner elects to execute a qualified forest taxable value affidavit, that
owner is not required to pay the $50.00 fee required under section 7jj[1](2).
If a landowner elects not to execute a qualified forest taxable value
affidavit, the existing affidavit shall must be rescinded, without subjecting the property to
the recapture tax provided for under the qualified forest property recapture
tax act, 2006 PA 379, MCL 211.1031 to 211.1036, and the taxable value of that
property shall must
be adjusted under subsection (3).
(q) Beginning on
December 8, 2006, a transfer of land, but not buildings or structures located
on the land, which that
meets 1 or more of the following requirements:
(i) The land is subject to a conservation
easement under subpart 11 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in this
subparagraph, "conservation easement" means that term as defined in
section 2140 of the natural resources and environmental protection act, 1994 PA
451, MCL 324.2140.
(ii) A transfer of ownership of the land or a
transfer of an interest in the land is eligible for a deduction as a qualified
conservation contribution under section 170(h) of the internal revenue code, 26
USC 170.
(r) A transfer of
real property or other ownership interests resulting from a consolidation or
merger of a domestic nonprofit corporation that is a boy or girl scout or camp
fire girls organization, a 4-H club or foundation, a young men's Christian association,
or a young women's Christian association and at least 50% of the members of
that organization or association are residents of this state.
(s) A change to the
assessment roll or tax roll resulting from the application of section 16a of
1897 PA 230, MCL 455.16a.
(t) Beginning
December 31, 2013 through December 30, 2014, a transfer of residential real
property if the transferee is related to the transferor by blood or affinity to
the first degree and the use of the residential real property does not change
following the transfer.
(u) Beginning
December 31, 2014, a transfer of residential real property if the transferee is
the transferor's or the transferor's spouse's mother, father, brother, sister,
son, daughter, adopted son, adopted daughter, grandson, or granddaughter and
the residential real property is not used for any commercial purpose following
the conveyance. Upon request by the department of treasury or the assessor, the
transferee shall furnish proof within 30 days that the transferee meets the
requirements of this subdivision. If a transferee fails to comply with a
request by the department of treasury or assessor under this subdivision, that
transferee is subject to a fine of $200.00.
(v) Beginning
December 31, 2014, for residential real property, a conveyance from a trust if
the person to whom the residential real property is conveyed is the settlor's
or the settlor's spouse's mother, father, brother, sister, son, daughter,
adopted son, adopted daughter, grandson, or granddaughter and the residential
real property is not used for any commercial purpose following the conveyance.
Upon request by the department of treasury or the assessor, the sole present
beneficiary or beneficiaries shall furnish proof within 30 days that the sole
present beneficiary or beneficiaries meet the requirements of this subdivision.
If a present beneficiary fails to comply with a request by the department of
treasury or assessor under this subdivision, that present beneficiary is
subject to a fine of $200.00.
(w) Beginning on
March 31, 2015, a conveyance of land by distribution under a will or trust or
by intestate succession, but not buildings or structures located on the land,
which meets 1 or more of the following requirements:
(i) The land is made subject to a
conservation easement under subpart 11 of part 21 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.2140 to 324.2144, prior to before the
conveyance by distribution under a will or trust or by intestate succession. As
used in this subparagraph, "conservation easement" means that term as
defined in section 2140 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.2140.
(ii) The land or an interest in the land is
made eligible for a deduction as a qualified conservation contribution under
section 170(h) of the internal revenue code, 26 USC 170, prior to before the
conveyance by distribution under a will or trust or by intestate succession.
(x) A conveyance of
property under section 2120a(6) of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2120a.
(8) If all of the
following conditions are satisfied, the local tax collecting unit shall revise
the taxable value of qualified agricultural property taxable on the tax roll in
the possession of that local tax collecting unit to the taxable value that qualified
agricultural property would have had if there had been no transfer of ownership
of that qualified agricultural property since December 31, 1999 and there had
been no adjustment of that qualified agricultural property's taxable value
under subsection (3) since December 31, 1999:
(a) The qualified
agricultural property was qualified agricultural property for taxes levied in
1999 and each year after 1999.
(b) The owner of
the qualified agricultural property files an affidavit with the assessor of the
local tax collecting unit under subsection (7)(o).
(9) If the taxable
value of qualified agricultural property is adjusted under subsection (8), the
owner of that qualified agricultural property is not entitled to a refund for
any property taxes collected under this act on that qualified agricultural property
before the adjustment under subsection (8).
(10) The register
of deeds of the county where deeds or other title documents are recorded shall
notify the assessing officer of the appropriate local taxing unit not less than
once each month of any recorded transaction involving the ownership of property
and shall make any recorded deeds or other title documents available to that
county's tax or equalization department. Unless notification is provided under
subsection (6), the buyer, grantee, or other transferee of the property shall
notify the appropriate assessing office in the local unit of government in
which the property is located of the transfer of ownership of the property
within 45 days of the transfer of ownership, on a form prescribed by the state
tax commission that states the parties to the transfer, the date of the
transfer, the actual consideration for the transfer, and the property's parcel
identification number or legal description. Forms filed in the assessing office
of a local unit of government under this subsection shall must be made
available to the county tax or equalization department for the county in which
that local unit of government is located. This subsection does not apply to
personal property except buildings described in section 14(6) and personal
property described in section 8(h), (i), and (j).
(11) As used in
this section:
(a)
"Additions" means that term as defined in section 34d.
(b)
"Beneficial use" means the right to possession, use, and enjoyment of
property, limited only by encumbrances, easements, and restrictions of record.
(c)
"Commercial purpose" means used in connection with any business or
other undertaking intended for profit, but does not include the rental of
residential real property for a period of less than 15 days in a calendar year.
(d) "Inflation
rate" means that term as defined in section 34d.
(e)
"Losses" means that term as defined in section 34d.
(f) "Qualified
agricultural property" means that term as defined in section 7dd.
(g) "Qualified
forest property" means that term as defined in section 7jj[1].
(h)
"Residential real property" means real property classified as
residential real property under section 34c.
Sec. 53b. (1) If there has been a qualified error, the
qualified error must be verified by the local assessing officer and approved by
the board of review. Except as otherwise provided in subsection (5), the board
of review shall meet for the purposes of this section on Tuesday following the
second Monday in December and on Tuesday following the third Monday in July. If
approved, the board of review shall file an affidavit within 30 days relative
to the qualified error with the proper officials and all affected official
records must be corrected. If the qualified error results in an overpayment or
underpayment, the rebate, including any interest paid, must be made to the
taxpayer or the taxpayer must be notified and payment
made paid within 30 days of the notice.
A rebate must be without interest. The treasurer in possession of the
appropriate tax roll may deduct the rebate from the appropriate tax collecting
unit's subsequent distribution of taxes. The treasurer in possession of the
appropriate tax roll shall bill to the appropriate tax collecting unit the tax
collecting unit's share of taxes rebated. Except as
otherwise provided in section 27a(4), a A correction
under this subsection may be made for the current year and the immediately
preceding year only.
(2) Action under
subsection (1) may be initiated by the taxpayer or the assessing officer.
(3) The board of
review meeting in July and December must be held only for the purpose described
in subsection (1) and to hear appeals provided for in sections 7u, 7ee, and
7jj. If an exemption under section 7u is approved, the board of review shall
file an affidavit with the proper officials involved in the assessment and
collection of taxes and all affected official records must be corrected. If an
appeal under section 7ee or 7jj results in a determination that an overpayment
has been made, the board of review shall file an affidavit and a rebate must be
made at the times and in the manner provided in subsection (1). Except as
otherwise provided in sections 7ee and 7jj, a correction under this subsection
must be made for the year in which the appeal is made only. If the board of
review approves an exemption or provides a rebate for property under section
7ee or 7jj as provided in this subsection, the board of review shall require
the owner to execute the affidavit provided for in section 7ee or 7jj.
(4) An owner or
assessor may appeal a decision of the board of review under this section
regarding an exemption under section 7ee or 7jj to the residential and small
claims division of the Michigan tax tribunal. An owner is not required to pay
the amount of tax in dispute in order to receive a final determination of the
residential and small claims division of the Michigan tax tribunal. However,
interest and penalties, if any, will accrue and be computed based on interest
and penalties that would have accrued from the date the taxes were originally
levied as if there had not been an exemption.
(5) The governing
body of the city or township may authorize, by adoption of an ordinance or
resolution, 1 or more of the following alternative meeting dates for the
purposes of this section:
(a) An alternative
meeting date during the week of the second Monday in December.
(b) An alternative
meeting date during the week of the third Monday in July.
(6) As used in this
section, "qualified error" means 1 or more of the following:
(a) A clerical
error relative to the correct assessment figures, the rate of taxation, or the
mathematical computation relating to the assessing of taxes.
(b) A mutual
mistake of fact.
(c) An adjustment under section 27a(4) or an An exemption under section 7hh(3)(b).
(d) An error of
measurement or calculation of the physical dimensions or components of the real
property being assessed.
(e) An error of
omission or inclusion of a part of the real property being assessed.
(f) An error
regarding the correct taxable status of the real property being assessed.
(g) An error made
by the taxpayer in preparing the statement of assessable personal property
under section 19.
(h) Either of the following errors
regarding an exemption under section 9o:
(i) An error made
by the local tax collecting unit in the processing of a timely filed claim of
exemption for personal property under section 9o.
(ii) (h) An
error made in the denial of a claim of exemption for personal property under
section 9o.
(i) Any of the
following errors regarding an exemption under section 7b:
(i) An error made by the local tax
collecting unit in the processing of a timely filed exemption affidavit.
(ii) A delay in the determination by the
United States Department of Veterans Affairs that a veteran is permanently and
totally disabled as a result of military service and entitled to veterans'
benefits at the 100% rate.
(iii) For tax year 2023 only, a denial by the
board of review of an exemption claimed under section 7b(1)(b).
(j) An exemption
under section 7u(10), for the immediately preceding tax year only, if the
exemption was not on the assessment roll and was not denied for that tax year.
A claim for exemption must be filed with the board of review on a form
prescribed by the state tax commission and provided by the local assessing
unit, accompanied by supporting documentation establishing eligibility for the
exemption for that immediately preceding tax year under the criteria in section
7u(2) and any other supporting documentation as may be required by the state
tax commission.