HOUSE BILL No. 4985

 

 

September 19, 2017, Introduced by Reps. Maturen, Griffin, Hughes and Howell and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 7b and 53b (MCL 211.7b and 211.53b), section

 

7b as amended by 2013 PA 161 and section 53b as amended by 2016 PA

 

108.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7b. (1) Real property used and owned as a homestead by a

 

disabled veteran who was discharged from the armed forces of the

 

United States under honorable conditions or by an individual

 

described in subsection (2) is exempt from the collection of taxes

 

under this act. To obtain the exemption, the property owner or his

 

or her legal designee shall file an affidavit showing the facts

 

required by this section and a description of the real property

 

shall be filed by the property owner or his or her legal designee

 

with the supervisor or other assessing officer during the period

 

beginning with the tax day for each year in which the exemption is

 

claimed and ending at the time of the final adjournment of the

 

local board of review. on December 1 of each year in which the

 

exemption is claimed. If the affidavit is timely filed, the

 

supervisor or other assessing officer shall review the affidavit

 

and determine whether the requirements of this section are met. If

 

the requirements are met, the supervisor or other assessing officer

 

shall grant the exemption. The affidavit when filed shall be open

 

to inspection. The county treasurer shall cancel taxes subject to

 

collection under this act for any year in which a disabled veteran

 

eligible for the exemption under this section has acquired title to

 

real property exempt under this section. Upon granting the

 

exemption under this section, each local taxing unit shall bear the

 

loss of its portion of the taxes upon which the exemption has been

 

granted. An eligibility determination of a supervisor or other

 

assessing officer under this section may be appealed to the board

 

of review at any meeting of the board of review during the year in

 

which the exemption under this section is claimed.

 

     (2) If a disabled veteran who is otherwise eligible for the

 

exemption under this section dies, either before or after the

 

exemption under this section is granted, the exemption shall remain

 

remains available to or shall continue continues for his or her

 

unremarried surviving spouse. The surviving spouse shall comply

 

with the requirements of subsection (1) and shall indicate on the

 

affidavit that he or she is the surviving spouse of a disabled

veteran entitled to the exemption under this section. The exemption

 

shall continue continues as long as the surviving spouse remains

 

unremarried.

 

     (3) As used in this section, "disabled veteran" means a person

 

who is a resident of this state and who meets 1 of the following

 

criteria:

 

     (a) Has been determined by the United States department of

 

veterans affairs Department of Veterans Affairs to be permanently

 

and totally disabled as a result of military service and entitled

 

to veterans' benefits at the 100% rate.

 

     (b) Has a certificate from the United States veterans'

 

administration, or its successors, Department of Veterans Affairs

 

certifying that he or she is receiving or has received pecuniary

 

assistance due to disability for specially adapted housing.

 

     (c) Has been rated by the United States department of veterans

 

affairs Department of Veterans Affairs as individually

 

unemployable.

 

     Sec. 53b. (1) If there has been a qualified error, the

 

qualified error shall be verified by the local assessing officer

 

and approved by the board of review. Except as otherwise provided

 

in subsection (9), 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 shall be corrected. If the qualified error results

 

in an overpayment or underpayment, the rebate, including any

interest paid, shall be made to the taxpayer or the taxpayer shall

 

be notified and payment made within 30 days of the notice. A rebate

 

shall 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 subsections (6) and

 

(8) and section 27a(4), a correction under this subsection may be

 

made for the current year and the immediately preceding year only.

 

     (2) Action pursuant to subsection (1) may be initiated by the

 

taxpayer or the assessing officer.

 

     (3) The board of review meeting in July and December shall

 

meet only for the purpose described in subsection (1) and to hear

 

appeals provided for in sections 7b, 7u, 7cc, 7ee, 7jj, and 9o. 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 shall be corrected. If an appeal under section 7b, 7cc,

 

7ee, 7jj, or 9o results in a determination that an overpayment has

 

been made, the board of review shall file an affidavit and a rebate

 

shall be made at the times and in the manner provided in subsection

 

(1). Except as otherwise provided in sections 7b, 7cc, 7ee, 7jj,

 

and 9o, a correction under this subsection shall 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 7cc, 7ee, or 7jj as provided in this subsection, the board

of review shall require the owner to execute the affidavit provided

 

for in section 7cc, 7ee, or 7jj and shall forward a copy of any

 

section 7cc affidavits to the department of treasury.

 

     (4) If an exemption under section 7cc is approved by the board

 

of review under this section, the provisions of section 7cc apply.

 

If an exemption under section 7cc is not approved by the board of

 

review under this section, the owner may appeal that decision in

 

writing to the department of treasury within 35 days of the board

 

of review's denial and the appeal shall be conducted as provided in

 

section 7cc(8).

 

     (5) 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, shall 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.

 

     (6) A correction under this section that approves a principal

 

residence exemption pursuant to section 7cc may be made for the

 

year in which the appeal was filed and the 3 immediately preceding

 

tax years.

 

     (7) For the appeal of a denial of a claim of exemption for

 

personal property under section 9o, if an exemption is approved,

 

the board of review shall remove the personal property from the

assessment roll.

 

     (8) If an exemption for personal property under section 9o 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 shall be corrected. If the board

 

of review does not approve an exemption under section 9o, the

 

person claiming the exemption for that personal property may appeal

 

that decision in writing to the Michigan tax tribunal. A correction

 

under this subsection that approves an exemption under section 9o

 

may be made for the year in which the appeal was filed and the

 

immediately preceding 3 tax years.

 

     (9) 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.

 

     (10) 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 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) An error made in the denial of a claim of exemption for

 

personal property under section 9o.