Bill Text: MI HB4215 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Property tax: personal property; small taxpayer exemption threshold for eligible personal property; increase. Amends sec. 9o of 1893 PA 206 (MCL 211.9o).

Spectrum: Moderate Partisan Bill (Republican 15-4)

Status: (Introduced - Dead) 2019-02-19 - Bill Electronically Reproduced 02/19/2019 [HB4215 Detail]

Download: Michigan-2019-HB4215-Introduced.html

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HOUSE BILL No. 4215

 

 

February 19, 2019, Introduced by Reps. Farrington, Leutheuser, Kahle, Bollin, Webber, Eisen, Berman, Inman, Paquette, Wozniak, Markkanen, Bellino, Rendon, Lasinski, Chirkun, LaGrand, Brann, Miller and Cambensy and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 9o (MCL 211.9o), as amended by 2018 PA 132.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9o. (1) Beginning December 31, 2013, eligible personal

 

property for which an exemption has been properly claimed under

 

this section is exempt from the collection of taxes under this act.

 

     (2) An owner of eligible personal property shall claim the

 

exemption under this section by filing a statement with the local

 

tax collecting unit in which the eligible personal property is

 

located not later than February 20 of the first year the exemption

 

is claimed or, if February 20 of the first year the exemption is

 

claimed is a Saturday, Sunday, or legal holiday, not later than the

 

next day that is not a Saturday, Sunday, or legal holiday. For

 

purposes of a statement delivered by the United States Postal

 

Service, the filing is timely if the postmark date is on or before

 

the filing deadline prescribed in this subsection. If the statement

 

is not timely filed with the local tax collecting unit, a late

 

submission may be filed directly with the March board of review

 

before its final adjournment by submitting the statement prescribed

 

in this subsection. The board of review shall not accept a filing

 

after adjournment of its March meeting. An appeal of a denial by

 

the March board of review may be made by filing a petition with the

 

Michigan tax tribunal within 35 days of the denial notice. A

 

statement filed under this subsection shall must be in a form

 

prescribed by the state tax commission and shall must include any

 

address where any property owned by, leased to, or in the

 

possession of that owner or a related entity is located within that

 

local tax collecting unit. The In the statement, the owner shall

 

require the owner to attest that the combined true cash value of

 

all industrial personal property and commercial personal property

 

in that local tax collecting unit owned by, leased to, or in the

 

possession of that owner or a related entity on December 31 of the

 

immediately preceding year is less than $80,000.00.$100,000.00.

 

     (3) If a statement claiming the exemption under this section

 

is filed as provided in subsection (2), the owner of that eligible

 

personal property is not required to file a statement under section

 

19.

 

     (4) A person who claims an exemption for eligible personal

 

property under this section shall maintain books and records and

 

shall provide access to those books and records as provided in

section 22. A local unit of government may develop and implement an

 

audit program that includes, but is not limited to, the audit of

 

all information submitted under subsection (2) for the current

 

calendar year and the 3 calendar years immediately preceding the

 

commencement of an audit. Any assessment as a result of an audit

 

must be paid in full within 35 days of issuance and must include

 

interest as described in subsection (5).

 

     (5) An exemption granted under this section remains in effect

 

until the personal property is no longer eligible personal

 

property. An owner whose personal property is no longer eligible

 

personal property shall file by February 20 of the year that the

 

property is no longer eligible a rescission and the statement

 

required under section 19. The rescission shall be filed on a form

 

prescribed by the department of treasury. Upon receipt of a

 

rescission form, the local assessor shall immediately remove the

 

exemption. An owner who fails to file a rescission and whose

 

property is later determined to be ineligible for the exemption

 

will be subject to repayment of any additional taxes with interest

 

as described in this subsection. Upon discovery that the property

 

is no longer eligible personal property, the assessor shall remove

 

the exemption of that personal property and, if the tax roll is in

 

the local tax collecting unit's possession, amend the tax roll to

 

reflect the removal of the exemption, and the local treasurer shall

 

within 30 days of the date of the discovery issue a corrected tax

 

bill for any additional taxes with interest at the rate of 1% per

 

month or fraction of a month and penalties computed from the date

 

the taxes were last payable without interest or penalty. If the tax

roll is in the county treasurer's possession, the tax roll shall be

 

amended to reflect the removal of the exemption and the county

 

treasurer shall within 30 days of the date of the removal prepare

 

and submit a supplemental tax bill for any additional taxes,

 

together with interest at the rate of 1% per month or fraction of a

 

month and penalties computed from the date the taxes were last

 

payable without interest or penalty. Interest on any tax set forth

 

in a corrected or supplemental tax bill again begins to accrue 60

 

days after the date the corrected or supplemental tax bill is

 

issued at the rate of 1% per month or fraction of a month. Taxes

 

levied in a corrected or supplemental tax bill shall be returned as

 

delinquent on the March 1 in the year immediately succeeding the

 

year in which the corrected or supplemental tax bill is issued.

 

     (6) If the assessor of the local tax collecting unit believes

 

that personal property for which a statement claiming an exemption

 

is timely and properly filed under subsection (2) is not eligible

 

personal property, the assessor may deny that claim for exemption

 

by notifying the person that filed the statement in writing of the

 

reason for the denial and advising the person that the denial may

 

be appealed to the board of review under section 30 during that tax

 

year.

 

     (7) If a person fraudulently claims an exemption for personal

 

property under this section, that person is subject to the

 

penalties provided for in section 21(2).

 

     (8) As used in this section:

 

     (a) "Commercial personal property" means personal property

 

that is classified as commercial personal property under section

34c or would be classified as commercial personal property under

 

section 34c if not exempt from the collection of taxes under this

 

act under this section or section 9m or 9n.

 

     (b) "Control", "controlled by", and "under common control

 

with" mean the possession of the power to direct or cause the

 

direction of the management and policies of a related entity,

 

directly or indirectly, whether derived from a management position,

 

official office, or corporate office held by an individual; by an

 

ownership interest, beneficial interest, or equitable interest; or

 

by contractual agreement or other similar arrangement. There is a

 

rebuttable presumption that control exists if any person, directly

 

or indirectly, owns, controls, or holds the power to vote, directly

 

or by proxy, 10% or more of the ownership interest of any other

 

person or has contributed more than 10% of the capital of the other

 

person. Indirect ownership includes ownership through attribution

 

or through 1 or more intermediary entities.

 

     (c) "Eligible personal property" means property that meets all

 

of the following conditions:

 

     (i) Is industrial personal property or commercial personal

 

property.

 

     (ii) The combined true cash value of all industrial personal

 

property and commercial personal property in that local tax

 

collecting unit owned by, leased to, or in the possession of the

 

person claiming an exemption under this section or a related entity

 

on December 31 of the immediately preceding year is less than

 

$80,000.00.$100,000.00.

 

     (iii) Is not leased to or used by a person that previously

owned the property or a person that, directly or indirectly,

 

controls, is controlled by, or is under common control with the

 

person that previously owned the property.

 

     (d) "Industrial personal property" means personal property

 

that is classified as industrial personal property under section

 

34c or would be classified as industrial personal property under

 

section 34c if not exempt from the collection of taxes under this

 

act under this section or section 9m or 9n.

 

     (e) "Person" means an individual, partnership, corporation,

 

association, limited liability company, or any other legal entity.

 

     (f) "Related entity" means a person that, directly or

 

indirectly, controls, is controlled by, or is under common control

 

with the person claiming an exemption under this section.

 

     Enacting section 1. This amendatory act applies to taxes

 

levied after December 31, 2019.