Bill Text: MI HB4034 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Property tax; exemptions; real property of certain nonprofit organizations; exempt from school operating millage. Amends sec. 53b of 1893 PA 206 (MCL 211.53b) & adds sec. 7qq.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2011-01-18 - Printed Bill Filed 01/14/2011 [HB4034 Detail]
Download: Michigan-2011-HB4034-Introduced.html
HOUSE BILL No. 4034
January 13, 2011, Introduced by Reps. Wayne Schmidt, MacMaster, Pscholka, Genetski, Pettalia, Kowall and Johnson and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 53b (MCL 211.53b), as amended by 2010 PA 24,
and by adding section 7qq.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7qq. (1) Except as otherwise limited in this subsection,
qualified fraternal property is exempt from the tax levied by a
local school district for school operating purposes to the extent
provided under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, according to the provisions of this section.
(2) To claim an exemption under subsection (1), the owner of
qualified fraternal property shall file an affidavit claiming the
exemption with the local tax collecting unit by December 31.
(3) The affidavit shall be on a form prescribed by the
department of treasury and shall require the person submitting the
affidavit to attest that the property for which the exemption is
claimed is qualified fraternal property.
(4) The assessor shall determine if the property is qualified
fraternal property and if so shall exempt the property from the
collection of the tax as provided in subsection (1) until December
31 of the year in which the property is no longer qualified
fraternal property or 3 years after the property is first exempt
under this section, whichever occurs first.
(5) Not more than 90 days after all or a portion of the
exempted property is no longer qualified fraternal property, the
owner shall rescind the exemption for the applicable portion of the
property by filing with the local tax collecting unit a rescission
form prescribed by the department of treasury. An owner who fails
to file a rescission as required by this subsection is subject to a
penalty of $5.00 per day for each separate failure beginning after
the 90 days have elapsed, up to a maximum of $1,000.00. This
penalty shall be collected under 1941 PA 122, MCL 205.1 to 205.31,
and shall be deposited in the general fund of this state.
(6) An owner of property that is qualified fraternal property
on December 31 for which an exemption was not on the tax roll may
file an appeal with the July or December board of review under
section 53b in the year the exemption was claimed or the
immediately succeeding year. An owner of property that is qualified
fraternal property on May 1 for which an exemption was denied by
the assessor in the year the affidavit was filed may file an appeal
with the July board of review for summer taxes or, if there is not
a summer levy of school operating taxes, with the December board of
review under section 53b.
(7) If the assessor of the local tax collecting unit believes
that the property for which an exemption has been granted is not
qualified fraternal property, the assessor may deny or modify an
existing exemption by notifying the owner in writing at the time
required for providing a notice under section 24c. A taxpayer may
appeal the assessor's determination to the board of review meeting
under section 30. A decision of the board of review may be appealed
to the residential and small claims division of the Michigan tax
tribunal.
(8) If property for which an exemption has been granted under
this section is not qualified fraternal property, the property that
had been subject to that exemption shall be immediately placed on
the tax roll 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 as though
the exemption had not been granted. A corrected tax bill shall be
issued for each tax year being adjusted 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.
(9) As used in this section:
(a) "Fraternal organization" means an organization within this
state, except a college fraternity or sorority, that meets all of
the following requirements:
(i) Is not organized for pecuniary profit.
(ii) Is a branch, lodge, or chapter of a national or state
fraternal organization.
(iii) Exists for the common purpose, brotherhood, or other
interests of its members.
(b) "Qualified fraternal property" means real property that is
the primary meeting place for a fraternal organization that is
owned and occupied by that fraternal organization solely for the
purposes for which that fraternal organization was established.
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 (7), the board of review shall meet for the purposes
of this section on Tuesday following the second Monday in December
and, for summer property taxes, on Tuesday following the third
Monday in July. Except as otherwise provided in subsection (7), if
there is not a levy of summer property taxes, the board of review
may meet for the purposes of this section 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 subsection (6) 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 this section 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 7u, 7cc, 7ee, and 7jj, and 7qq.
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 7cc, 7ee, or
7jj, or 7qq 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 7cc, 7ee, and 7jj,
and 7qq, a correction under this subsection shall be made for the
year in which the appeal is made only. If the board of review
grants an exemption or provides a rebate for property under section
7cc,
7ee, or 7jj, or 7qq 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,
or 7qq and shall forward a copy of
any section 7cc affidavits to the department of treasury.
(4) If an exemption under section 7cc is granted by the board
of review under this section, the provisions of section 7cc apply.
If an exemption under section 7cc is not granted 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, or 7qq 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 grants 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) 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.
(8) 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.
