Bill Text: MI SB1235 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: exemptions; public notice of eligibility and filing requirements for certain exemptions; require certain local entities to provide. Amends secs. 7u & 24c of 1893 PA 206 (MCL 211.7u & 211.24c).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-12-03 - Referred To Committee On Finance [SB1235 Detail]
Download: Michigan-2019-SB1235-Introduced.html
SENATE BILL NO. 1235
December 03, 2020, Introduced by Senator CHANG
and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7u and 24c (MCL 211.7u and 211.24c), section 7u as amended by 2012 PA 135 and section 24c as amended by 2010 PA 332.
the people of the state of michigan enact:
Sec. 7u. (1) The
principal residence of persons a person who, in the judgment of the supervisor and
board of review, by reason of poverty, are
is unable to contribute toward
the public charges is eligible for exemption in whole or in part from taxation the
collection of taxes under this act. This section does not apply
to the property of a corporation.
(2) To be eligible for exemption under this section, a person
shall, subject to subsection (5), do
all of the following on an annual basis:
(a) Be an owner of Own and occupy as a principal residence the property
for which an exemption is requested.
(b) File a claim with the supervisor or board of review on a
form provided by the local assessing unit, accompanied by federal and state
income tax returns for all persons residing in the principal residence,
including any property tax credit returns, filed in the immediately preceding
year or in the current year. Federal and state income tax returns are not
required for a person residing in the principal residence if that person was
not required to file a federal or state income tax return in the tax year in
which the exemption under this section is claimed or in the immediately
preceding tax year. If a person was not required to file a federal or state
income tax return in the tax year in which the exemption under this section is
claimed or in the immediately preceding tax year, an affidavit in a form
prescribed by the state tax commission may be accepted in place of the federal
or state income tax return. The filing of a claim under this subsection
constitutes an appearance before the board of review for the purpose of preserving
the claimant's right to appeal the decision of the board of review regarding
the claim.
(c) Produce a valid driver's license or other form of
identification if requested by the supervisor or board of review.
(d) Produce a deed, land contract, or other evidence of
ownership of the property for which an exemption is requested if required by
the supervisor or board of review.
(e) Meet the federal poverty guidelines updated annually in
the federal register Federal Register by the United States department Department
of health Health and human
services Human Services under
its authority of section 673 of subtitle B of title VI of the
omnibus budget reconciliation act of 1981, Public Law 97-35, to revise the poverty line under 42 USC 9902, or
alternative guidelines adopted by the governing body of the local assessing
unit provided the alternative guidelines do not provide income eligibility
requirements less than the federal guidelines.
(3) The application for an exemption under this section shall must
be filed after January 1 but before the day prior to the last day
of the board of review.
(4) The governing body of the local assessing unit shall
determine and make available to the public the policy and guidelines the local
assessing unit uses for the granting of exemptions under this section. The
guidelines shall must
include but not be limited to the specific income and asset
levels of the claimant and total household income and assets.
(5) The board of review shall follow the policy and
guidelines of the local assessing unit in granting or denying an exemption
under this section unless the board of review determines there are substantial
and compelling reasons why there should be a deviation from the policy and
guidelines and the substantial and compelling reasons are communicated in
writing to the claimant. The board of review may
grant an exemption under this section for either or both of the following years
in which the person claiming the exemption is or was qualified under the
eligibility requirements in subsection (2):
(a)
The current tax year.
(b)
The immediately preceding tax year.
(6) A person who files a claim under this section is not
prohibited from also appealing the assessment on the property for which that
claim is made before the board of review in the same year.
(7)
The local assessing unit shall make available on any available local government
web platform maintained by that community the policy and guidelines established
under subsection (4), the related application materials, and information
regarding submission deadlines.
(8)
The department of treasury shall make available on its website both of the
following:
(a)
Information for use by taxpayers regarding the availability of, and application
process for, the exemption under this section.
(b)
Information and educational resources and materials for use by local treasurers
and assessors that will assist them in the administration of the exemption
under this section.
(9)
(7) As used in this
section, "principal residence" means principal residence or qualified
agricultural property as those terms are defined in section 7dd.
Sec. 24c. (1) The
assessor shall give to each owner or person or persons listed on the assessment
roll of the property a notice by first-class mail of an increase in the
tentative state equalized valuation or the tentative taxable value for the
year. The notice shall must specify each parcel of property, the tentative
taxable value for the current year, and the taxable value for the immediately
preceding year. The notice shall must also specify the time and place of the meeting
of the board of review. The notice shall
must also specify the difference
between the property's tentative taxable value in the current year and the
property's taxable value in the immediately preceding year.
(2) The notice shall
must include, in addition to the
information required by subsection (1), all of the following:
(a) The state equalized valuation for the immediately
preceding year.
(b) The tentative state equalized valuation for the current
year.
(c) The net change between the tentative state equalized
valuation for the current year and the state equalized valuation for the
immediately preceding year.
(d) The classification of the property as defined by section
34c.
(e) The inflation rate for the immediately preceding year as
defined in section 34d.
(f) A statement provided by the state tax commission
explaining the relationship between state equalized valuation and taxable
value. If the assessor believes that a transfer of ownership has occurred in
the immediately preceding year, the statement shall
must state that the ownership was
transferred and that the taxable value of that property is the same as the
state equalized valuation of that property.
(g)
Except as otherwise provided in subsection (9), for property classified as
residential real property under section 34c, notification of the annual
application requirement applicable if the property owner wishes to claim an
exemption under section 7u. This notification must include all of the following
information regarding the exemption under section 7u:
(i) A brief explanation of the grounds for the exemption.
(ii) Notice of the application due date for the exemption.
(iii) Information about how one may obtain further
information about the exemption and any necessary application materials for the
exemption.
(3) When required by the income tax act of 1967, 1967 PA 281,
MCL 206.1 to 206.532, 206.713,
the assessment notice shall
must include or be accompanied by
information or forms prescribed by the income tax act of 1967, 1967 PA 281, MCL
206.1 to 206.532.206.713.
(4) The assessment notice shall
must be addressed to the owner
according to the records of the assessor and mailed not less than 14 days
before the meeting of the board of review. The failure to send or receive an
assessment notice does not invalidate an assessment roll or an assessment on
that property.
(5) The tentative state equalized valuation shall must
be calculated by multiplying the assessment by the tentative
equalized valuation multiplier. If the assessor has made assessment adjustments
that would have changed the tentative multiplier, the assessor may recalculate
the multiplier for use in the notice.
(6) The state tax commission shall prepare a model assessment
notice form that shall be made and make it available to local units of government.
(7) The assessment notice under subsection (1) shall must
include the following statement:
"If you purchased your principal residence after May 1
last year, to claim the principal residence exemption, if you have not already
done so, you are required to file an affidavit before May 1.".
(8) For taxes levied after December 31, 2003, the assessment
notice under subsection (1) shall must separately state the state equalized valuation
and taxable value for any leasehold improvements.
(9) The notification required under subsection (2)(g) may be provided by a separate written insert included with the mailing of the assessment notice required under this section.
