DATE: January 31, 1997
TO: Boards of Review
FROM: State Tax Commission (STC)

RE: 1997 Board of Review

The State Tax Commission (STC) has sent bulletins to Boards of Review whenever changes to the law have warranted an update of the previous year's Board of Review bulletin. A standard format for these bulletins has evolved which will be retained as part I1 of this bulletin. Part I will contain information about changes which have occurred over the past several years which Boards of Review need to know about for the 1997 assessment year. Also included at the end of this year's Board of Review Bulletin is a chart outlining Appeal Procedures which is STC Bulletin No.6 of 1997.

Several procedures for Assessors and/or Boards of Review are explained in Part I of this bulletin. These new procedures shall be implemented by Assessors and/or Boards of Review for 1997. These changes for 1997 consist of the following three items. (Item No. 4 discusses an exemption which starts in 1998).

1. The Value Change Multiplier is prohibited.

1. The law defining the 1996 Capped Value formula has been amended for 1997 with the result that for 1997 and thereafter, the Capped Value formula DOES NOT require or permit the use of the Value change Multiplier (VCM). Therefore, please note that the correct calculation of 1997 Capped Value shall be without the VCM.
2. STC Form L-4035a which serves as a calculation sheet for Taxable Valuations, was first used in 1996. It has necessarily been revised for 1997 to exclude consideration of the Value Change Multiplier because of the change in statue referred to in 1)a) above, which prohibits the use of the VCM.

2. Deadline for Assessment Roll Classification Appeals to the State Tax Commission has been changed to June 30.

1. Starting in 1997, the deadline for property owners to appeal the March Board of Review’s classification is June 30 of the current year. In prior years the deadline was no later than 30 days after the final adjournment of the March Board of Review.
2. The change described in 2)a) above has caused a minor change to STC Form L-4035. STC Form L-4035 constitutes the minimum Board of Review record.

3. Property Tax Exemption for Nonprofit Charitable Institutions Expanded.

1. Public Act (PA) 469 of 1996 expands the exemption from taxation for property owned by a nonprofit charitable institution. Please see-paragraph O of this bulletin for the details of this expanded exemption.

4. Recently passed Water Conditioning System Property Tax Exemption is NOT applicable to 1997 assessments.

1. Public Act 582 of 1996 exempts water conditioning systems used for a residential dwelling, BUT NOT ON THE 1997 ASSESSMENT ROLL. PA 582 of 1996 became law on January 17,1997, which is too late to allow the exemption of water conditioning systems on the 1997 assessment roll.
2. The status day for determining exemptions on the 1997 assessment roll is December 31, 1996. The exemption for water conditioning systems used for a residential dwelling will apply for the first time on the 1998 assessment roll. This exemption applies only to residential water conditioning systems which are personal property. Leased water conditioning systems are typically personal property. This exemption does NOT apply to water conditioning systems which are owned by the home owner and are therefore real property.

PART I

1. Proposal A

On March 15,1994 the voters of the State of Michigan approved Proposal A which made significant changes to the State Constitution. Most notably, for Boards of Review, Proposal A implemented a cap on the growth in Taxable Value. Taxable Value is a new term. Starting in 1995, property taxes have been calculated using Taxable Value rather than State Equalized Value which was used prior to 1995.

On December 29,1994 the Governor signed into law Public Act (PA) No. 41 5 of 1994. PA 4 15 of 1994 contains many changes to the General Property Tax Act regarding the implementation of Proposal A.

What has not changed is the method of computing Assessed Value and the system of county and state equalization. The "traditional" Assessed Value is still required to be 50% of market value. There shall still be a State Equalized Value (SEV) for each property in the State of Michigan. Properties of similar value within a township or city must still have similar Assessed Values. In other words, the uniformity provisions of the 1963 Michigan Constitution still apply.

The biggest change, starting in 1995, was the requirement to calculate a Taxable Value for each property in the State of Michigan (Starting in 1995, property taxes were calculated using Taxable Value rather than State Equalized Value). It is Taxable Value, not assessed or equalized value, which is subject to the cap required by Proposal A. The calculation of Taxable Value will be discussed later in this bulletin. For many parcels of property (including those parcels subject to a Transfer of Ownership in the prior year), the Taxable Value created by Proposal A will be the same as the SEV of the parcel. For other properties, the taxable value will be the "Capped Value" established by Proposal A. Prior to 1995, property tax bills were calculated using ONLY State Equalized Valuations (SEVs) as the property tax base for each parcel of property on the tax roll, as follows:

OLD PROPERTY TAX LEVY FORMULA NO LONGER USED

The term Taxable Value was created by Proposal A and now Taxable Value always replaces State Equalized Value as item (A) in the property tax equation above (though Taxable Value is frequently the same as SEV for individual parcels). Taxable Value has become the single property tax base in Michigan used to calculate property taxes. (Special Assessments are still typically levied against SEV)

REVISED PROPERTY TAX LEVY FORMULA

IMPORTANT: Please note that the following general requirements are still applicable to the 1997 assessment/equalization process.

1) Assessors shall prepare a 1997 assessment roll that contains "traditional" Assessed Valuations for each parcel of property, with uniformity according to the value of the parcel, and at 50 percent of true cash value, just as was done in past years. 

2) Proposal A did provide the authority to increase ail "traditional" assessments across the board by the inflation rate. This would m have been good assessing practices in the past and it is prescribed this year. THIS IS NOT REQUIRED OR PERMITTED BY PROPOSAL A, AND DOES NOT SATISFY PROPOSAL A'S REQUIREMENT FOR A TAXABLE VALUATION CAP.

3) The cap on Taxable Value that was authorized by Proposal A has popularly been referred to as an assessment cap. A more technically accurate description of it would be to call it a Taxable Value Cap. Calling it by either name does not alter the fact that it effectively limits property taxes for capped properties. Knowing that it is a Taxable Value Cap and not an Assessed Value cap accounts for the fact that 1997 assessments must be revised upwards or downwards where real estate values have increased or decreased, in the same manner that they have been adjusted in the past.

"Traditional" assessments are to be uniform according to the value of the property and at 50 percent of value for each parcel of property in your township or city, regardless of whether or not the Taxable Value is capped. The calculation of Taxable Value is separate from the "traditional" Assessed Value and will be discussed later in this bulletin.

4) County Equalization Studies (usually 24 month studies) are still required to be prepared by Equalization Departments and submitted by an Equalization Department to the State Tax Commission on or before December 31 annually. Single year or 12 month studies still are appropriate only where there are severely declining real estate markets. State Equalization data is still to be prepared by the Property Tax Division staff that serves the State Tax Commission. Each County Board of Commissioners still must annually equalize assessments for each Township and City within each County during its April Equalization Session.

Assessors and Boards of Review still have the obligation to turn over their assessment roll to the County Equalization Director immediately following adjournment of the Board of Review, but no later than the tenth day after adjournment of the Board of Review, or by Wednesday following the first Monday in April, whichever is first. See Section 21 1.30(4) of the General Property Tax Act. The State Tax Commission will still hold a Preliminary State Equalization meeting on the Second Monday in May regarding and a Final State Equalization Valuation on the Fourth Monday in May regarding the six separately equalized classifications of real property plus personal property.

THE DETERMINATION OF ASSESSMENTS (PREPARATION AND REVIEW OF AN ASSESSMENT ROLL) ARE STILL IMPORTANT AND REQUIRED PROJECTS FOR ASSESSORS AND BOARDS OF REVIEW, AND COUNTY AND STATE EQUALIZED VALUATIONS ARE STILL IMPORTANT AND REQUIRED BY CONSTITUTION AND STATUTE. State equalized values (when they are the same as Taxable Value) will still be used in the calculation of property taxes for many parcels throughout the state and they are used in over 150 places in the law for such things as state revenue sharing payments. State Equalized Value will also be used in the property taxation of properties which have experienced a "transfer of ownership'' in 1996.

5) Proposal A did not change the State Tax Commission Rules and these rules still apply to the assessment/equalization activity of assessors, equalization departments and boards of review. 

6) State Assessor's Board rules still provide that if an assessing unit received an equalization factor of more than 1.10, the factor shall be sufficient cause for the board to determine if the certification of the assessor who prepared the assessment roll shall be revoked or suspended.

CALCULATION OF TAXABLE VALUE

Starting in 1995, Proposal A required that a Taxable Value shall be calculated for each parcel of real property in the State of Michigan (including real property assessed on the personal property roll such as buildings on leased land). Each assessor made the calculations for their own city or township for the first time in 1995. The formula for calculating 1997 Taxable Value is as follows (provided there was NOT a "transfer of ownership" on the property in 1996 which will be discussed later in this bulletin). 

1997 Taxable Value for a parcel of property is the LOWER of:

1) 1997 SEV for the parcel

or

2) 1997 CAPPED VALUE for the parcel which is calculated as follows:
(1996 Taxable Value - Losses) X (The lowest of 1.05 or the Inflation Rate of 1.028) + Additions

Note: The inflation rate multiplier of 1.028 for 1997 happened to exactly calculate to match the 1996 inflation rate multiplier which was also 1.028.

IMPORTANT NOTE: The 1997 Capped Value formula is different from the Capped Value formula used in 1996. The 1997 Capped Value Formula has changed in that it does not required or permit the Value Change Multiplier which was declared unconstitutional by the Attorney General in 1996. For more information, please see STC Bulletin No. 14 of 1996.

The following example shows the calculation of Taxable Value for a property which had no physical changes during 1996 (meaning that the property's land size was still the same and the buildings on the property were neither destroyed in whole or in part, nor improved).

EXAMPLE: for a property whose market value increased by 2% - for 1997 and there was not a "transfer of ownership" in 1996

Given:
1996 SEV = 50,000
1996 Taxable Value = 49,000
1997 SEV = 50,000 + 2% = 51,000

1997 Taxable Value is the LOWER of:

1) The 1997 SEV of 51,000

OR

2) The 1997 Capped Value which is calculated as follows:

(1996 Taxable Value - Losses) X (The lowest of 1.05 or the inflation rate of 1.028) + Additions

Since there are no additions or losses for this example, the formula for Capped Value is:

(49,000 - 0) X 1.028 + 0 for Additions

It can be further simplified as:

49,000 X 1.028

1997 Capped Value = $50,372

The 1997 Taxable Value is $50,372 (since this is lower than the 1997 SEV of $51,000.)

Important Note: The 1997 Capped Value formula no longer contains the Value Change Multiplier (V.C.M.). The Value Change Multiplier was declared unconstitutional by the Attorney General in 1996 and was removed from section 27a of the General Property Tax Act by PA 476 of 1996.

One result of the removal of the VCM from the Capped Value Formula is that, in certain circumstances, the Taxable Value will increase in a year in which the State Equalized Value (SEV) remains the same.

EXAMPLE: The Taxable Value of a property in 1996 is $100,000 and its 1996 SEV is $105,000. The property has no additions or losses. If the SEV correctly stays the same in 1997, the Taxable Value must increase by the rate of inflation (1.028) up to $102,800 even though the 1997 SEV is still $105,000.

In the example above, the Assessor and the Board of Review ARE REQUIRED BY LAW to increase the Taxable Value for 1997 by the applicable rate of inflation. It would be illegal, in the example above, for the assessor or the Board of Review to set the Taxable Value at any figure other than $102,800. This example applies to Taxable Value NOT Assessed Value. This example is not intended to demonstrate that it is proper to raise assessed value by the inflation rate.

The calculation of Capped Value and Taxable Value are covered in detail in STC Bulletin No. 3 of 1995, STC Bulletin No. 18 of 1995, STC Bulletin No. 2 of 1996, and STC Bulletin No.3 of 1997.

TRANSFERRED PROPERTIES

STC Bulletin No. 16 of 1995 (as supplemented by STC Bulletin No. 3 of 1997) discusses "Transfers of Ownership". A property on which a "Transfer of Ownership" occurred in 1996 shall have its Taxable Value uncapped in 1997. This means that the 1997 Taxable Value of this property will be the same as its 1997 SEV.

The growth in Taxable Value of transferred properties will then be capped again in the second year following the "transfer of ownership".

THE TAXABLE VALUES OF PROPERTIES WHICH HAD A "TRANSFER OF OWNERSHIP" IN 1996 ARE SUBJECT TO BEING UNCAPPED IN 1997.

The assessor and the Board of Review shall follow the same procedures for determining the Assessed Value of properties which have experienced a "transfer of ownership" as are used for properties which have not experienced a "transfer of ownership". In the year following a sale which is determined to be a "transfer of ownership" of real estate, the SEV of the property will not automatically or necessarily equal ?4 of the sale price of the parcel. An individual sale price is not always a good indicator of the true cash value of the property due to a variety of reasons such as an uniformed buyer, an uninformed seller, insufficient marketing time, buyer and seller are relatives, and other possible reasons.

Section 27(5) of the General Property Tax Act states the following: Beginning December 3 1,1994, the purchase price paid in a transfer of property is not the presumptive true cash value of the property transferred. In determining the true cash value of transferred property, an assessing officer shall assess that property using the same valuation method used to value all other property of that same classification in the assessing jurisdiction.

Therefore, a board of review does NOT have the authority to raise an assessment to 50% of sale price where that is not uniform with the level of assessment of properties of similar value in the unit.

NEITHER PROPOSAL A NOR ITS IMPLEMENTING LANGUAGE AUTHORIZED ASSESSORS OR THE BOARD OF REVIEW TO "FOLLOW SALES" WHEN DETERMINING THE ASSESSED VALUE OF PROPERTIES. "FOLLOWING SALES" IS DESCRIBED IN THE ASSESSOR'S MANUAL AS THE PRACTICE OF IGNORING THE ASSESSMENT OF PROPERTIES WHICH HAVE NOT RECENTLY BEEN SOLD WHILE MAKING SIGNIFICANT CHANGES TO THE ASSESSMENTS OF PROPERTIES WHICH HAVE BEEN SOLD. THE PRACTICE OF "FOLLOWING SALES" IS A SERIOUS VIOLATION OF THE LAW.

The law requires that a buyer of property shall report the "transfer of ownership" and the amount of the "transfer of ownership" to the assessing officer on STC Form L-4260 (Real Estate Transfer Affidavit). While this function is not the responsibility of boards of review, boards of review may get questions regarding the filing of STC Form L-4260.

2. Authority of the Board of Review to Make Changes to Assessed Values, Capped Values. Tentative Taxable Values. Property Classifications, and Exemptions

The March Board of Review has authority to change ONLY the current year's assessments. The March Board of Review does NOT have the authority to change assessments for a prior year.

Prior to 1995, a taxpayer could appeal the Assessed Value, the exempt status, and the classification of properties to the March Board of Review. The Board of Review's authority as regards Assessed Value, exempt status, and the classification of properties has not changed.

STARTING IN 1995, A TAXPAYER COULD ALSO APPEAL THE TENTATIVE TAXABLE VALUE TO THE MARCH BOARD OF REVIEW.

The Board of Review's authority regarding each of these items is discussed below.

1. Assessed Values

The "traditional" Assessed Value is still required by law to be established at 50% of true cash value. The State Constitution still requires the "traditional" Assessed Value to be uniform with the assessments of other similar properties. 

According to the Supreme Court, a Board of Review may not make wholesale or across the board adjustments to assessments. A Board of Review must consider each parcel and act upon it individually. A Board of Review did not have and does not now have the authority to make changes to alter, evade or defeat an equalization factor assigned by the county or the state.

If the Board of Review changes an Assessed Value, it must also consider whether this change has caused the tentative Taxable Value to also change. This could happen because tentative Taxable Value is the LOWER of the Assessed Value (after applying the tentative equalization factor) and the Capped Value. The minutes of the 1997 Board of Review shall include a copy of Form L-4035a whenever the Board of Review makes a change which causes the Taxable Value to change. The form L-4035a has been changed for 1997. The use of Form L-4035a is discussed in paragraph D on page 16 of this bulletin.

EXAMPLE: Using the same information from the example earlier in this bulletin for a property which did not include any additions or losses and for which there was NOT a "transfer of ownership" in 1996.

Given:
1996 SEV = $50,000
1996 Taxable Value = $49,000
1997 Assessed Value = $51,000 (Tentative Equalization Factor is 1.0000)
1997 Capped Value = $50,372
1997 Tentative Taxable Value = $50,372

If the Board of Review changed the 1997 Assessed Value from $5 1,000 to $50,000, the Tentative Taxable Value would also change to $50,000 because $50,000 is lower than the 1997 Capped Value of $50,372.

This example demonstrates that a change by the Board of Review in Assessed Value from $5 1,000 to $50,000 has also caused the Tentative Taxable Value to change from $50,372 to $50,000.

A completed copy of Form L-4035a, as it applies to this example, is included in this bulletin.

2. Capped Values

STC Bulletin No. 14 of 1994 states that the assessment roll must contain the Capped Value for each parcel of real property. The 1997 formula for Capped Value is calculated as follows:

1997 Capped Value = (1996 Taxable Value - Losses) X (The lowest of 1.05 or the inflation Rate of 1.028) + Additions

Two elements of the formula above are matters of record and do not require any judgment decisions by the Board of Review. Those elements are the "1 996 Taxable Value" and the "Inflation Rate" of 1.028. If the correct numbers of record are in the formula, these two elements CANNOT be changed by the Board of Review.

For 1997 Capped Value calculations, the Board of Review SHALL NOT use a number other than 1.028 for the Inflation Rate. The Inflation Rate will be recalculated for each year.

Note: The inflation rate multiplier of 1.028 for 1997 happened to exactly calculate to match the 1996 inflation rate multiplier which was also 1.028.

The amount of the Losses and Additions used in the Capped Value formula, if improper, may be changed by the Board of Review. Please see STC Bulletin No. 3 of 1995, No. 18 of 1995 and No. 3 of 1997 which address the procedures required by law for determining the amount of Losses and Additions for calculation of the cap on Taxable Value. Only factual information should be used to amend the losses or additions in the Capped Value formula. Such amendments, if any, by a Board of Review, shall be in accordance with the law and STC directives.

Please note that some additions used in the Capped Value formula are at 50% of true cash value and some may not be.

Three types of ADDITIONS must be at 50% of true cash value and 6 types could be less than 50% of true cash value. See page 7 of STC Bulletin #18 of 1995 for a listing of these types and see pages 6 to 11 of STC Bulletin #3 of 1995 (as amended by STC Bulletin No.3 of 1997) for the formulas to calculate the amount of each type. Reprints of these pages are attached at the end of this bulletin.

There are 4 types of LOSSES. 3 of the types of LOSSES are at the level of Taxable Value in the prior year and there are special provisions for the 4th type, contaminated properties. See pages 1 1 and 12 of STC Bulletin #3 of 1995 for the formulas to calculate the amount of LOSSES. Reprints of these pages are attached at the end of this Bulletin.

If the Board of Review changes the Capped Value by changing the amount of an Addition (assuming it is one of the Additions required to be at 50% of True Cash Value), it must also include the affects of this change in the Assessed Value. This would also cause tentative Taxable Value to change because tentative Taxable Value shall be the LOWER of the Assessed Value (after applying the tentative equalization factor) and the Capped Value.

If the Board of Review changes the amount of an ADDITION or a LOSS, it must include a completed copy of Form L-4035a with the Board of Review minutes.

EXAMPLE: In this example a garage was constructed in 1996 with a true cash value of $8,000

Given:
1996 Taxable Value = $49,000

1996 SEV = $50,000

1997 Assessed Value = $55,000 (Tentative Equalization Factor is 1.000).This assessment includes a 2% increase over the previous year because the value of this property has risen and it also includes $4,000 for the garage.

1997 Capped Value = $54,372 (Calculated as follows:)
(1996 Taxable Value - Losses) X 1.028 4 Additions
($49,000 - 0) X (1.028) + $4,000 = $54,372

1997 Tentative Taxable Value = $54,372

If the Board of Review lowered the amount of the Addition in the Capped Value formula for the garage by $500 (from $4,000 to $3,500), it would also be necessary to lower the assessed value by $500 down to $54,500.

A completed copy of Form L-4035a, as it applies to this example, is included in this bulletin.

3. Tentative Taxable Value

Taxable Value is now the basis for property tax levies in Michigan The law requires that the assessment roll must show the Tentative Taxable Value for each parcel of property. Once the Capped Value and the Assessed Value (with its tentative equalization factor) are properly calculated, the Tentative Taxable Value is the lower of the two (assuming there has not been a "transfer of ownership" on the property in 1996).

THE BOARD OF REVIEW SHALL NOT RAISE OR LOWER TENTATIVE TAXABLE VALUE UNLESS IT HAS ALSO RAISED OR LOWERED THE ASSESSED VALUE AND/OR THE CAPPED VALUE. (An exception to this rule could occur if there was a "transfer of ownership" on a property in 1996 and the assessor had not uncapped the Taxable Value for 1997 or if the opposite occurred.) Again, if either the Capped Value or the Assessed Value is changed by the Board of Review, the Board shall also determine whether the Tentative Taxable Value must also change. This could happen because Tentative Taxable Value is the LOWER of the Assessed Value (after applying the tentative equalization factor) and the Capped Value (assuming there has not been a "transfer of ownership" in 1996). See example under "Assessed Value" in paragraph #1 above.

4. "TRANSFERS OF OWNERSHIP": 1996 "TRANSFERS OF OWNERSHIP" UNCAP 1997 TAXABLE VALUE

The assessor of each township and city is required by law to review all of the transfers and conveyances which occurred in the prior year and determine which of these transfers and conveyances are "transfers of ownership" (Please See STC Bulletin No. 16 of 1995 (as amended by STC Bulletin No. 3 of 1997) for detailed information about "transfers of ownership").

If a particular 1996 transfer or conveyance is a "transfer of ownership", the assessor shall uncap the Taxable Value of that property-in 1997. THIS MEANS THAT THE 1997 TAXABLE VALUE OF THIS PROPERTY SHALL BE THE SAME AS ITS 1997 SEV. (The Taxable Value of uncapped properties shall then be capped again in the second year following the "transfer of ownership", until the year following the next "transfer of ownership"). If a particular 1996 transfer or conveyance is NOT a "transfer of ownership", the Taxable Value of that property continues to be capped in 1997.

This determination by the assessor that a particular transfer or conveyance is a "transfer of ownership" and that the property's Taxable Value should be uncapped is subject to review by the March Board of Review either on the Board's own initiative or at the request of a property owner.

5. Property Tax Exemptions

Property tax exemptions are still to be granted only according to authorizing provisions of the law and the Constitution. Court cases pertinent to property tax exemptions have interpreted the Constitution and the law and some cases are precedential.

Generally, it still holds true that the Constitution requires a NARROW construction of exemptions. In order to qualify for exemption, a property must have the exact qualifications required by the specific authorizing statute.

Please note paragraphs C, G, M and 0 below which address the exemptions for homesteads, qualified agricultural properties, poverty exemptions, air and water pollution control facilities, and nonprofit charitable institutions.

6. Assessment Roll Property Classifications

Property classifications must still be made in accordance with section 211.34c of the Michigan Compiled Laws (Please See STC Bulletin No. 9 of 1995 (as amended by STC Bulletin No. 3 of 1997) for detailed information about property classification). When considering a property's classification, Boards of Review must not be influenced by the effect that a particular classification might have on that property's exempt status as a homestead or a qualified agricultural property. For example, a board of review has no authority to grant an agricultural classification just because it would qualify a property for exemption from the 18 mills of local school operating tax.

MCL 2 1 1.34c, AS AMENDED BY PA 476 OF 1996, provides that an owner or assessor who is not satisfied with the decision of the March Board of Review regarding a property's classification, may file a petition &th the STC by June 30 of the current year.

MCL 2 1 1.34c(6) indicates that an assessment roll classification by the State Tax Commission is the final administrative appeal step available.

It is necessary that each Board of Review notify a petitioning taxpayer of its decision regarding a classification matter.

It is also necessary to remember that the zoning of a particular property does not dictate the classification of a property for assessment purposes, though it may be an influencing factor.

STC Bulletin No. 14 of 1994 states that the assessment roll shall have a Board of Review column large enough to accommodate changes to the assessed value, the capped value, and the tentative taxable value. The changes to each of these must be recorded separately on the roll. This may be accomplished by placing an "A" behind a revised assessed value, a "C" behind a revised capped value, and a "T" behind a revised tentative taxable value.

3. Exemption from 18 mills of Local School Operating Tax for Homesteads (Administered by Michigan Department of Treasury) and qualified Agricultural Properties (Administered by the STC)

1. Homestead Exemption

Starting in 1994, properties which qualified as "homesteads" or "qualified agricultural property" were exempt from some school operating taxes (usually 18 mills). This is still true for 1997. This exemption does not apply to Taxable Value but applies to millages only.

THE MARCH BOARD OF REVIEW HAS NO AUTHORITY TOCONSIDER OR ACT UPON PROTESTS OR APPEALS OF "HOMESTEAD" EXEMPTIONS FOR 1994 OR ANY YEAR THEREAFTER, NO MATTER HOW THE "HOMESTEADS" ARE CLASSIFIED UNDER MCL 211.34c. If the assessor denies a homestead exemption, the owner may appeal to the Michigan Department of Treasury within 35 days of the notice of denial, NOT TO THE MARCH BOARD OF REVIEW. The owner may then appeal the decision by the Department of Treasury to the Michigan Tax Tribunal within 35 days of the receipt of the notice of denial.

2. Qualified Agricultural Property Exemption

THE MARCH BOARD OF REVIEW DOES HAVE AUTHORITY TO CONSIDER AND ACT ON PROTESTS TO THE BOARD OF REVIEW REGARDING THE MILLAGE EXEMPTION FOR QUALIFIED AGRICULTURAL PROPERTIES.

If an assessor believes that a property for which a qualified agricultural property exemption has been granted in 1996 is not qualified agricultural property in 1997, the assessor may deny or modify the exemption. If so, the assessor must notify the owner in writing and mail the notice to the owner not less than 10 days before the second meeting of the Board of Review. A taxpayer may then appeal the assessor's determination to the March Board of Review. The Board of Review's decision may then be appealed to the Michigan Tax Tribunal. (Please see STC Bulletin No.4 of 1997 for detailed information about the Qualified Agricultural Property exemption.)

Properties which meet the requirements of the qualified agricultural property exemption as of May 1,1997 shall be exempted by the assessor from the 18 mills starting with 1997 tax bills. If the assessor denies a 1997 exemption because the property does not qualify as of May 1,1997, the owner may appeal that denial to the JULY BOARD OF REVIEW if there is a summer levy or to the DECEMBER BOARD OF REVIEW. An owner of qualified agricultural property on May 1, 1996 or on May 1,1997 that does not receive the exemption on the 1996 or 1997 tax roll may appeal to the 1997 JULY OR DECEMBER BOARD OF REVIEW

IMPORTANT NOTE: PA 476 of 1996 authorizes the 1997 JULY OR DECEMBER BOARD OF REVIEW to grant a qualified agricultural property exemption for 1994 under certain limited circumstances. This will be explained in a future STC Bulletin.

4. Form L- 4035, (Pe tition to Board of Review) and Form L-4035a

Attached at the end of this bulletin is a copy of STC form L-4035 (Petition to Board of Review) which is recommended by the State Tax Commission for use by the Board of Review. A description of the use of this form can be found in Part I1 of this bulletin under the heading "Board of Review Minutes". This form has not changed from 1996, except for the deadline of June 30 for an appeal of classification to the STC. Also attached at the end of this bulletin is a copy of form L-4035a. The minutes of the Board of Review shall include a completed copy of form L-4035a whenever the Board of Review makes a change which causes Taxable Value to change. The following are changes which could cause Taxable Value to change:

1. A change in the amount of a LOSS (used in the Capped Value formula).

2. A change in the amount of an ADDITION (used in the Capped Value formula).

3. A change in the amount of the 1997 Assessed Value.

5. Certain Relatives of the Assessor May Not Serve on the Board of Review

Public Act No. 292 of 1993 states that a spouse, mother, father, sister, brother, son or daughter including an adopted child, of the assessor is not eligible to serve on the Board of Review or to fill any vacancy on the board.

6. Public Act 297 of 1994 (as amended) (MCL 211.30c)

MCL 21 1.30c requires that when the March Board of Review or the Michigan Tax Tribunal reduces the assessed value or taxable value of a property, that reduced amount must be used as the BASIS for calculating the assessment in the immediately succeeding year.

IMPORTANT NOTE: This only applies to MICHIGAN TAX TRIBUNAL CHANGES when the MTT hearing is held in the same calendar year as the year of the assessment being appealed. Therefore, if the MTT hearing for a 1996 assessment appeal isn't held until 1997, the resulting assessment does not have to be used as the basis for the 1997 assessment.

Boards of review are cautioned that the "BASIS" for an assessment does not necessarily become the assessment. The dictionary defines basis as the base, foundation, or chief supporting factor of anything. Assessments still have to be at 50% of True Cash Value and uniform.

Attached to this bulletin is a copy of a letter opinion by Deputy Attorney General Stanley D. Steinborn, which indicates the importance of achieving fifty percent of true cash value and uniformity when annually establishing assessments, notwithstanding the provisions of MCL 2 1 1.30~ as added by 1994 PA 297, and amended by 1994 PA 41 5 and 1996 PA 476.

This letter opinion stresses the importance of "harmonizing" the requirements of MCL 211.30c with the requirements of MCL 211.27a( 1) and MCL 211.24( 1).

MCL 211.27a(1)requires that "property shall be assessed at 50% of its true cash value."

MCL 211.24(1) requires assessors to annually "estimate, according to his or her best information and judgment, the true cash value and assessed value" of each parcel of real and personal property.

Please note that the fact that an assessment reduced by a Board of Review may become the "basis" of the next year’s assessment is not, in and of itself, a legitimate reason for a Board of Review to reduce an assessment.

7. Poverty Exemptions

Public Act 390 of 1994 makes significant changes to the poverty exemption found in section 211.7u of the Michigan Compiled Laws. Please see STC Bulletins No. 5 of 1995 and No. 14 of 1996 for details.

8. "Qualified Personal Property" of a "Qualified Business"

Public Act 96 of 1994 was enacted for small leasing companies who would like the users of their leased equipment to pay the personal property tax directly to the taxing unit. Please see STC Bulletin No. 16 of 1994 for details regarding the implementation of Public Act 96 of 1994

9. Park Model Trailer Coaches are Assessable

Recently it has come to the attention of the State Tax Commission that some assessors are not assessing park model (trailer coaches) because of the mistaken impression that park models are exempt from ad valorem property taxation in certain situations. Park models are assessable even if they are licensed by the Secretary of State's Office.

Park models have the same general appearance as mobile homes but are smaller than mobile homes. Park models have less than 400 square feet of floor area and are therefore not able to be titled as mobile homes, but are titled as trailer coaches.

Even though park models are titled as trailer coaches they cannot be licensed by the Office of the Secretary of State for regular over-the-road travel because they are wider than 102 inches (See Michigan Compiled Law (MCL) 257.719a) Occasionally the Secretary of State's Office may unknowingly issue a trailer license plate to a park model at the request of the owner, because the park model is titled as a trailer coach. This license plate is not a road-legal license plate and does not exempt the park model from property taxation.

Park models are frequently located in seasonal mobile home parks or in campgrounds and are left there the entire year but are not occupied. In this situation, park models are assessable as personal property to the owners of the park models, regardless of whether the park model trailer coaches are licensed.

The Board of Review has an obligation to place an assessment on the assessment roll for any property assessable under the General Property Tax Act that has not been placed on the assessment roll by the assessing officer.

10. Assessment Roll Requirement Regarding "Transfers of Ownership"

Starting in 1996, the assessment roll shall contain the date of the LAST "transfer of ownership" of every parcel of real property that has transferred AFTER DECEMBER 31, 1994. It is NOT necessary that the assessment roll contain a complete history of "transfers of ownership" on each property but only the LAST "transfer of ownership" which occurred after December 3 1,1994.

This requirement is only for properties which experience a transfer which is a "transfer of ownership". There is NO requirement to record the date of transfers which are not "transfers of ownership". For more information regarding "transfer of ownership", please see STC Bulletin No. 16 of 1995.

11. Industrial Facilities Tax Roll (IFT) - "New" Certificates

A parcel of property holding a "New" Industrial Facilities Exemption Certificate will have two assessments. The land will be assessed on the regular (ad valorem) assessment roll that the assessor has turned over to the March Board of Review. The building, land improvements and personal property (pertaining to the same certificate) will have an assessment on the Industrial Facilities Tax Roll.

P.A. 1 of 1996 requires the assessor to calculate a Capped Value and a Taxable Value for the building and land improvements of a parcel of real property holding a "New" Industrial Tax Facilities Exemption Certificate.

Taxes on a property holding a "New" Industrial Facilities Tax Exemption (IFT) Certificate shall be levied against the Taxable Value of the property, NOT the State Equalized Value. The Taxable Value of REAL property which has a "New" IFT Exemption Certificate is calculated the same way that Taxable Value is calculated for the non IFT, ad valorem assessment roll.

The property’s land assessment on the ad valorem roll may be adjusted by the March Board of Review. The IFT roll assessment of a "New" Industrial Facilities Tax Certificate may also be adjusted by the March Board of Review.

12. IFT Tax Roll - "Rehabilitation" Certificates

A parcel of property holding a "Rehabilitation" Industrial Facilities Exemption Certificate will have two assessments. The land will be assessed on the regular (ad valorem) assessment roll that the assessor has turned over to the March Board of Review. The building, land improvements and personal property (pertaining to the same certificate) will have an assessment on the Industrial Facilities Tax Roll.

The taxes on properties holding a "Rehabilitation" or "Replacement" certificate shall be levied against Taxable Value.

The Taxable Value of a property on the IFT roll with a "Rehabilitation" or "Replacement" certificate is the amount of the Taxable Value of the real and or personal properly for the tax year immediately preceding the effective date of the IFT exemption certificate. That amount is ‘‘frozen’)’ until the exemption certificate expires.

The Taxable Value of a property on the IFT roll covered by a "Rehabilitation" or "Replacement7’ certificate which began PRIOR TO 1995 will still be the same as the "frozen" SEV for the property until the exemption certificate expires. The Taxable Value of a property covered by a "Rehabilitation" or "Replacement" certificate which BEGAN IN 1995 OR AFTER will be the same as the "frozen" TAXABLE VALUE for the property until the exemption certificate expires.

The property’s land assessment on the ad valorem roll may be adjusted by the March Board of Review. The IFT Roll assessment of a property with a "Rehabilitation" certificate or "Replacement" certificate CANNOT have its assessment altered by a March Board of Review during the life of the certificate.

13. Air and Water Pollution Control Exemptions

Air and Water Pollution Control exemption certificates are granted by the State Tax Commission. The exemptions are not valid until the certificates are in place. A copy of the certificate is required to be attached to the Personal Property Statement each year when the exemption is for personal property.

14. Downtown Development Authorities. Tax Increment Finance

Authorities, and Local Development Finance Authorities There are no separate assessment rolls for the authorities listed above. The March Board of Review has NO authority regarding initial assessments made in a PRIOR year for these authorities.

The March Board of Review has authority to consider and/or alter the assessed and taxable values for the CURRENT year for properties within one of the above districts.

15. Expansion of Exemption for Property Ow ned by a Non Profit Charitable Institution

PA 469 of 1996 EXPANDS the exemption from taxation for property owned by a nonprofit charitable institution.

Specifically, PA 469 of 1996 states that property owned by a nonprofit charitable institution that is leased, loaned, or otherwise made available to another nonprofit charitable institution, a nonprofit hospital, or a nonprofit educational institution is exempt if BOTH of the following 2 conditions are met:

1. The property must be occupied for the purposes for which the USER the property was organized. The user of the property is a nonprofit charitable institution, or a nonprofit hospital, or a nonprofit educational institution.

2. The property would be exempt if it were being used by the OWNER for the purpose for which the OWNER was organized. The owner is a nonprofit charitable institution.

PART II

GUIDE FOR THE BOARD OF REVIEW MEMBERSHIP

Three, six, or nine electors of the township may be appointed by the township board. 211.28(1) and (2), MCL.

At least 2/3 of the members shall be property taxpayers of the township. If 6 or 9 are appointed, they shall be divided into committees of 3 for the purpose of hearing and deciding. Two of the 3 members of a board of review committee shall constitute a quorum for the transaction of the business of the committee.

The size, composition, and manner of appointment of the board of review of a city may be prescribed by the charter of a city. In the absence of or in place of such a charter provision, the governing body of the city, by ordinance, may establish the city board of review in the same manner and for the same purposes as for township boards of review.

FIRST MEETING

The board of review shall meet on the Tuesday immediately following the first Monday in March to receive the assessment roll for the current year and proceed to examine same. 211.29( 1) MCL.

The board on its own motion or for cause shown by any person shall change and correct the roll to insure that the assessments in the roll comply with this act (Act 206, P.A. 1893, the General Property Tax Act). 211.29(2) MCL.

The board shall review the roll according to facts existing on tax day. 211.29(3) MCL.

The board shall pass on each valuation and each interest and enter the valuation of each, as fixed by the board, in a separate column. 21 1.29(4) MCL. The board of review is authorized to correct the assessed value and/or the tentative taxable value and/or the property classification and/or the qualified agricultural property exemption.

All the statements (personal and real property statements) required to be made and received by the supervisor or assessor shall be filed by same and shall be presented to the board of review for the use of said board. 21 1.23 MCL. (Statements are confidential with penalties for divulging information.)

The business which the board may perform shall be conducted at an open public meeting as provided in Act 267, P.A. 1976, Open Meetings Act.

Notice of the meeting of the board of review shall be given at least one week before in a generally circulated newspaper serving the area in 3 successive issues. If a newspaper is not available, the notice shall be posted in 4 conspicuous places in the township. (211.29(6) MCL) (Note: Sec. 211.34a M.C.L. requires that the notice of board of review meetings shall give the tentative ratios and estimated multipliers for each class of property in the assessing unit. Sec. 21 1.30(5) states that if a township or city authorized a resident taxpayer to file a board of review protest by letter, the notice or publication of the board of review meeting must include a statement notifying taxpayers of this option.)

A notice of any change by the board of review shall be given to the person chargeable with the assessment in such manner as will assure that the person has an opportunity to attend the second meeting of the board of review. 211.29(7) MCL.

SECOND MEETING

The board of review shall meet on the second Monday in March at 9 A.M. to continue in session during the day for not less than 6 hours. The board shall also meet for not less than 6 hours during the remainder of that week.

In townships with a population of 10,000 or more the board shall hold at least 3 hours of it's required sessions after 6 P.M.

Persons or their agents who have appeared to file a protest at a scheduled meeting or at a scheduled appointment shall be afforded an opportunity to be heard. 211.30 MCL.

The board of review shall listen to protests and correct the assessed value or the tentative taxable value as will make the valuation just and equal.

The board may examine under oath the person making the application, or any other person, touching the matter. Any member of the board may administer the oath.

The board of review has full authority, upon its own motion, to change assessments, to add to the roll omitted property which is liable to assessment if the person who is assessed shall be promptly notified and granted an opportunity to object.

Every person who makes a request, protest or application to the board of review for the correction of the assessed value or the tentative taxable value of the person's property shall be notified in writing of the board of review's action, not later than the first Monday in June. The notice shall set forth the state equalized valuation or the tentative taxable value of the property, information regarding the right of appeal to the Michigan Tax Tribunal, the address of the Michigan Tax Tribunal and final date for appealing to the Michigan Tax Tribunal. 211.30(2) MCL.

A non-resident taxpayer may file a protest in writing and shall not be required to make a personal appearance. The governing body of a township or city may by ordinance or resolution permit resident taxpayers to file a protest to the board of review in writing without personal appearance. If an ordinance or resolution is adopted to permit residents to file protests in writing, this fact must be contained in the assessment notice required by Sec. 211.24c and on each notice or publication of the meeting of the board of review as required by MCL 211.30(5) MCL.

After the board of review completes its review of the assessment roll, a majority of the entire board membership shall indorse a statement that the roll is the assessment roll of the township for the year in which it was prepared and approved by the board of review. 211.30(3) MCL.

Upon completion and the endorsement of the roll, it shall be presumed by all courts to be valid and shall not be set aside except for causes hereinafter mentioned. The omission of the endorsement shall not affect the validity of such roll. 211.31 MCL.

If a quorum of the board of review or a quorum of a committee of the board is not present at any meeting, the supervisor or any member present shall notify the absent member to attend at once. The member so notified shall attend without delay.

If the second meeting is not held at the time fixed, then the board will meet on the next Monday and proceed as though the meeting had been timely held. 211.32 MCL.

The supervisor shall be secretary of the full board of review and keep a record of proceedings and changes made in the roll and file the record with the township or city clerk. If the supervisor is absent, the board shall appoint one of its members to serve as secretary.

The state tax commission may prescribe the form of the record when necessary. 211.33 MCL. The review of assessments by the boards of review shall be completed on or before the first Monday in April. 211.30a MCL.

Note: References on this page to the board of review will apply to the committees of 3 if the board consists of 6 or 9 members.

BOARD OF REVIEW ACTIONS-PERMITTED AND PROHIBITED

If the board of review consists of 6 or 9 members in townships or cities, the three member committees originally formed must remain intact. There shall be no transfer of a member or members to another committee. Each committee of three members may hear protests and decide issues.

At the first meeting the full board of review shall meet for the purpose of reviewing the roll. The board of review is not required to receive and hear taxpayers at this meeting; however, it may receive and consider written protests for assessment change. The public shall be permitted to be present as provided in the open meetings act.

The board of review or the committees of 3 must pass on each valuation (both assessed value and tentative taxable value) and each interest. Across the board adjustments by the board have been rejected by the Michigan Supreme Court in ruling in Hayes v City of Jackson, 267 Michigan 523 and Negaunee v State Tax Commission, 337 Mich 169.

The board of review shall not reject or prepare an assessment roll but must consider only the assessment roll prepared by the assessor.

If the board of review receives an appeal from the classification of a parcel of property, it should give written notice of its action to the person who filed the appeal in order that the person has time to protest to the State Tax Commission. A classification appeal must be filed with the State Tax Commission no later than June 30 of the current year.

BOARD OF REVIEW MINUTES

A. Minutes should include the following:

1. Each protesting property owner or agent shall be required to file a completed STC form L-4035 with the Board of Review for each disputed assessed value and/or tentative taxable valuation and/or disputed classification and/or qualified agricultural property exemption.

2. The action and vote of the Board of Review shall be noted directly on the form L-4035 in the space provided for BOARD OF REVIEW USE ONLY.

3. The minutes of the Board of Review shall also include a completed copy of form L-4035a whenever the Board of Review makes a change which causes Taxable Value to change. The following are changes which would cause Taxable Value to change:

   1. A change in the amount of a LOSS.

   2. A change in the amount of an ADDITION.

   3. A change in the amount of the 1997 Assessed Value.

4. The State Tax Commission form L-4035 (and form L-4035a when needed) provide the minimum acceptable format for Board of Review records. Boards of Review using more extensive forms, that meet all the requirements indicated in this text, may continue to do so.

5. State Tax Commission form L-4035 (and form L-4035a when needed) are to be incorporated as an integral part of the Board of Review minutes. Each assessed value and tentative taxable value and classification and qualified agricultural property exemption which is protested by a taxpayer or agent at Board of Review, or altered by the Board of Review, shall be documented by a completed form L-4035 which records the action and vote of the Board (and by form L-4035a when needed).

1. Each STC form L-4035, whether or not a change is made by the Board of Review, shall be incorporated into the minutes by the Board of Review by notation of the petition number as recorded on each form L-4035. This same petition number shall also be recorded on each completed form L-4035a.

2. Each form L-4035 and form L-4035a shall be attached to and retained with the minutes to provide the necessary historic record.

6. Additionally the minutes shall include references to:

1. Place, day, and time of meeting.

2. Members present and members absent; correspondence or telephone calls, made or received, and discussion recorded regarding each petition.

3. Actual hours in session should be recorded daily, and time of daily adjournments recorded.

4. Date and time of closing of the final annual session should be recorded.

7. A written record of the annual Board of Review proceedings is necessary because:

1. Petitions may be filed by taxpayers with the Tax Tribunal regarding assessed value, tentative taxable value, or exemption issued or with the Tax Commission regarding non-valuation classification disputes.

2. A complete record eliminates misunderstandings and provides a year to year record.

STATUTORY REFERENCES

211.2 Michigan Compiled Laws (MCL) Tax Day, preparation of assessment roll, examination of properties.

The taxable status of persons and real and personal property for a tax year shall be determined as of each December 3 1 of the immediately preceding year, which is considered the tax day, any provisions in the charter of any city or village to the contrary notwithstanding. An assessing officer is not restricted to any particular period in the preparation of the assessment roll but may survey, examine, or review properties at any time before or after the tax day. (This section last amended 1993, Act 313)

211.10 MCL, Village Assessments

(2) Notwithstanding any provision to the contrary in the act of incorporation or charter of a village, an assessment for village taxes shall be identical to the assessment made by the applicable assessing officer of the township in which the village is located, and tax statements shall set forth clearly the state equalized value and the taxable value of the individual properties in the village upon which authorized millages are levied.

NOTE: Act 288, PA 1966 amended Sec. 10 of the General Property Tax Act to provide that assessments for village taxes shall be identical to assessments made by the supervisor of the township in which the village is located. Thus the assessments made by the township supervisor automatically become the village assessments. (The village boards of review were abolished by Act 84 of 1967. This section last amended 1994, Act 4 15)

211.10a MCL

Sec. 10a. All property assessment rolls and property appraisal cards shall be available for inspection and copying during the customary business hours. (This section added 1973, Act 177, Immediate Effect December 28,1973.)

211.23 MCL Statements, filing, disposition; liability for unlawful use (Personal Property)

Sec. 23. All the statements herein required to be made and received by the supervisor or assessor shall be filed by him, and shall be presented to the board of review hereinafter provided for, or provided for in any act incorporating any village or city, for the use of said board, and after the assessment is reviewed and completed by such board of review, all of the statements shall be deposited in the office of the township or city clerk, and shall be preserved until after the next assessment is made and completed, after which they may be destroyed upon the order of the township board or city or village council, but no such statement shall be used for any other purpose except the making of an assessment for taxes as herein provided, or for enforcing the provisions of this act, and any officer or person who shall make or allow to be made willfully or knowingly, any other or unlawful use of any such statement, shall be liable to the person making such statement for all damages resulting from such unauthorized or unlawful use of such statement. All the statements received by the supervisor or assessor shall be made available to the county tax or equalization department mandatorily established under section 34 of this act and use of such statements by such county tax or equalization department shall be deemed a use for the purpose of enforcing the provisions of this act. (This section last amended 1964, Act 275, Effective August 28, 1964.)

211.24c MCL Notice of Assessments Increased (These are increases by the assessor - see Section 30 for changes by the Board of Review)

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 specify each parcel of property, the tentative taxable value for the current year and, beginning in 1996, the taxable value for the  immediately preceding year. The notice shall also specify the time and place of the meeting of the board of review. Beginning in 1996, the notice shall 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 include, in addition to the information required by subsection (l), 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. Beginning in 1996, if the assessor believes that a transfer of ownership has occurred in the immediately preceding year, the statement shall 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.

(3) When required by the income tax act of 1967, Act No. 281 of the Public Acts of 1967, being sections 206.1 to 206.532 of the Michigan Compiled Laws, the assessment notice shall include or be accompanied by information or forms prescribed by Act No. 281 of the Public Acts. of 1967.

(4) The assessment notice shall be addressed to the owner according to the records of the assessor and mailed not less than 10 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 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 available to local units of government.

(7) Beginning in 1995, the assessment notice under subsection (1) shall include the following statement:

"If you purchased your homestead after May 1 last year, to claim the homestead exemption, if you have not already done so, you are required to file an affidavit before May 1 ."

(This section last amended 1996, Act 476.)

211.28 MCL Township board of review; appointment, vacancy, quorum term.

Sec. 28. (1) Those electors of the township appointed by the township board shall constitute a board of review for the township. At least 2/3 of the members shall be property taxpayers of the township. Members appointed to the board of review shall serve for terms of 2 years beginning at noon on January 1 of each odd-numbered year.

Each member of the board of review shall qualify by taking the constitutional oath of office within 10 days after appointment. The township board may fill any vacancy that occurs in the membership of the board of review. A member of the township board is not eligible to serve on the board or to fill any vacancy. A spouse, mother, father, sister, brother, son, or daughter, including an adopted child, of the assessor is not eligible to serve on the board or to fill any vacancy. A majority of the board of review constitutes a quorum for the transaction of business, but a lesser number may adjourn and a majority vote of those present shall decide all questions. At least 2 members of a 3-member board of review shall be present to conduct any business or hearings of the board of review.

(2) The township board may appoint 3,6, or 9 electors of the township, who shall constitute a board of review for the township. If 6 or 9 members are appointed as provided in this subsection, the membership of the board of review shall be divided into board of review committees consisting of 3 members each for the purpose of hearing and deciding issues protested pursuant to section 30. Two of the 3 members of a board of review committee constitutes a quorum for the transaction of the business of the committee. All meetings of the members of the board of review and committee shall be held during the same hours of the same day and at the same location. The size, composition, and manner of appointment of the board of review of a city may be prescribed by the charter of a city. In the absence of or in place of a charter provision, the governing body of the city, by ordinance, may establish the city board of review in the same manner and for the same purposes as provided by this subsection for townships. A majority of the entire board of review membership shall indorse the assessment roll as provided in section 30. The duties and responsibilities of the board contained in section 29 shall be carried out by the entire membership of the board of review and a majority of the membership constitutes a quorum for those purposes. ("'his section last amended 1993, Act 292)

211.29 MCL Township board of review; meeting, time; review of assessment roll.

Sec. 29. (1) On the Tuesday immediately following the first Monday in March, the board of review of each township shall meet at the office of the supervisor, at which time the supervisor shall submit to the board the assessment roll for the current year, as prepared by the supervisor, and the board shall proceed to examine and review the assessment roll.

(2) During that day, and the day following, if necessary, the board, of its own motion, or on sufficient cause being shown by a person, shall add to the roll the names of persons, the value of personal property, and the description and value of real property liable to assessment in the township, omitted from the assessment roll. The board shall correct errors in the names of persons, in the descriptions of property upon the roll, and in the assessment and valuation of property. The board shall do whatever else is necessary to make the roll comply with this act.

(3) The roll shall be reviewed according to the facts existing on the tax day. The board shall not add to the roll property not subject to taxation on the tax day, and the board shall not remove from the roll property subject to taxation on that day regardless of a change in the taxable status of the property since that day.

(4) The board shall pass upon each valuation and each interest, and shall enter the valuation of each, as fixed by the board, in a separate column.

( 5 ) The roll as prepared by the supervisor shall stand as approved and adopted as the act of the board of review, except as changed by a vote of the board. If for any cause a quorum does not assemble during the days above mentioned, the roll as prepared by the supervisor shall stand as if approved by the board of review.

(6) The business which the board may perform shall be conducted at a public meeting of the board held in compliance with Act No. 267 of the Public Acts of 1976, being sections 15.261 to 15.275 of the Michigan Compiled Laws. Public notice of the time, date, and place of the meeting shall be given in the manner required by Act No. 267 of the Public Acts of 1976. Notice of the date, time, and place of the meeting of the board of review shall be given at least 1 week before the meeting by publication in a generally circulated newspaper serving the area. The notice shall appear in 3 successive issues of the newspaper where available; otherwise, by the posting of the notice in 5 conspicuous places in the township. (Note: Sec. 211.34a MCL requires that the notice of board of review meetings shall give the tentative ratios and estimated multipliers for each class of property in the assessing unit.) Sec. 211.30(5) states that if a township or city authorizes a resident taxpayer to file a board of review protest by letter, this notice or publication of the board of review meeting must include a statement notifying taxpayers of this option.)

(7) When the board of review makes a change in the assessment of property or adds property to the assessment roll, the person chargeable with the assessment shall be promptly notified in such a manner as will assure the person opportunity to attend the second meeting of the board of review provided in section 30. (This section last amended 1978, Act 124, Effective April 25, 1978.)

211.30 Board of review; meetings; sessions; request, protest, or application for correction of assessment; hearing; examination of persons on oath; filing by nonresident taxpayer; notice; filing, hearing, and determination of objection; right of appeal; endorsement and signed statement; delivery of assessment roll; ordinance or resolution authorizing filing of protest by letter; notice of option.

Sec. 30. (1) The board of review shall meet on the second Monday in March at 9 a.m., and continue in session during the day for not less than 6 hours. The board shall also meet for not less than 6 hours during the remainder of that week. Persons or their agents who have appeared to file a protest before the board of review at a scheduled meeting or at a scheduled appointment shall be afforded an opportunity to be heard by the board of review. The board of review shall schedule a final meeting after the board makes a change in the assessed value or tentative taxable value of property or adds property to the assessment roll. In a township having a population of 10,000 or more, the board shall hold at least 3 hours of its required sessions for review of assessment rolls during the week of the second Monday in March after 6 p.m.

(2) A board of review shall meet a total of at least 12 hours during the week beginning the second Monday in March to hear protests. At the request of a person whose property is assessed on the assessment roll or of his or her agent, and on sufficient cause being shown, the board shall correct the assessed value or tentative taxable value of the property, in a manner as in their judgment will make the valuation of the property relatively just and proper under this act. The board may examine on oath the person making the application, or any other person concerning the matter. A member of the board of review may administer the oath. A nonresident taxpayer may file his or her appearance, protest, and papers in support of the protest by letter, and his or her personal appearance is not required. The board of review, upon its own motion, may change assessed values or tentative taxable values or add to the roll property omitted from the roll that is liable to assessment in the township, if the person who is assessed upon the altered valuation or for the omitted property is promptly notified and granted an opportunity to file objections to the change in his or her assessed value or tentative taxable value or to the addition of his or her property to the assessment roll at the meeting or at a subsequent meeting. An objection shall be promptly heard and determined. Each person who makes a request, protest, or application to the board of review for the correction of the assessed value or tentative taxable value of this person's property shall be notified in writing, not later than the first Monday in June, of the board of review's action on the request, protest, or application, of the state equalized valuation or tentative taxable value of the property, and of information regarding the right of further appeal to the tax tribunal. Information regarding the right of further appeal to the tax tribunal shall include, but is not limited to, a statement of the right to appeal to the tax tribunal, the address of the tax tribunal, and the final date for filing an appeal with the tax tribunal.

(3) After the board of review completes the review of the assessment roll, a majority of the board shall indorse the roll and sign a statement to the effect that the roll is the assessment roll of the township for the year in which it has been prepared and approved by the board of review.

(4) The completed assessment roll shall be delivered by the township supervisor or by the assessor to the county equalization director not later than the tenth day after the adjournment of the board of review, or the Wednesday following the first Monday in April, whichever date occurs first.

(5) The governing body of the township or city may authorize, by adoption of an ordinance or resolution, a resident taxpayer to file his or her protest before the board of review by letter without a personal appearance by the taxpayer or his or her agent. If that ordinance or resolution is adopted, the township or city shall include a statement notifying taxpayers of this option in each assessment notice under section 24c and on each notice or publication of the meeting of the board of review. (This section last amended 1994, Act 41 5 )

211.30a MCL Township board of review; completion of review, date.

Sec. 30a. In the year 1950 and thereafter the review of assessments by boards of review in all cities and townships shall be completed on or before the first Monday in April, any provisions of the charter of any city or township to the contrary notwithstanding: Provided, that the legislative body of any city or township, in order to comply with the provisions hereof, may, by ordinance, fix the period or periods for preparing the budget and for making, completing and reviewing the assessment roll, any provisions of the charter of such city or township or any law to the contrary notwithstanding. (This section added 1949, Act 285, Effective September 23, 1949.)

211.30c MCL

Sec. 30c. (1) If a taxpayer has the assessed value or taxable value reduced on his or her property as a result of a protest to the board of review under section 30, the assessor shall use that reduced amount as the basis for calculating the assessment in the immediately succeeding year. However, the taxable value of that property in a tax year immediately succeeding a transfer of ownership of that property is that property’s state equalized valuation in the year following the transfer as calculated under this section.

(2) If a taxpayer appears before the tax tribunal during the same tax year for which the state equalized valuation, assessed value, or taxable value is appealed and has the state equalized valuation, assessed value, or taxable value of his or her property reduced pursuant to a final order of the tax tribunal, the assessor shall use the reduced state equalized valuation, assessed value, or taxable value as the basis for calculating the assessment in the immediately succeeding year. However, the taxable value of that property in a tax year immediately succeeding a transfer of ownership of that property is that property’s state equalized valuation in the year following the transfer as calculated under this section.

(3) This section applies to an assessment established for taxes levied after January 1, 1994. This section does not apply to a change in assessment due to a protest regarding a claim of exemption. (This section last amended 1996, Act 476.)

211.31 MCL Township board of review, completed roll valid; conclusive presumption.

Sec. 3 1. Upon the completion of said roll and its endorsement in manner aforesaid, the same shall be conclusively presumed by all courts and tribunals to be valid, and shall not be set aside except for causes hereinafter mentioned. The omission of such endorsement shall not affect the validity of such roll.

211.32 MCL Township board of review; quorum; conscription of absent members; second meeting alternative.

Sec. 32. If from any cause a quorum shall not be present at any meeting of the board of review, it shall be the duty of the supervisor, or, in his absence, any other member of the board present, to notify each absent member to attend at once, and it shall be the duty of the member so notified to attend without delay. If from any cause the second meeting of such board of review herein provided for is not held at the time fixed therefore, then and in that case it shall meet on the next Monday thereafter, and proceed in the same manner and with like powers as if such meeting had been held as hereinbefore provided.

211.33 MCL Secretary of board of review; record; filing, form.

Sec. 33. The supervisor shall be the secretary of said board of review and shall keep a record of the proceedings of the board and of all the changes made in such assessment roll, and shall file the same with the township or city clerk with the statements made by persons assessed. In the absence of the supervisor, the board shall appoint 1 of its members to serve as secretary. The state tax commission may prescribe the form of the record whenever deemed necessary. (This section last amended 1964, Act 275, Effective August 28, 1964.)

211.34a MCL Tabular statement of tentative equalization ratios and estimated multipliers; preparation; publication; copies; notices; effect on equalization procedures; appeal.

Sec. 34a (1) The equalization director of each county shall prepare a tabular statement each year, by the several cities and townships of the county, showing the tentative recommended equalization ratios and estimated multipliers necessary to compute individual state equalized valuation of real property and of personal property. The county shall publish the tabulation in a newspaper of general circulation within the county on or before the third Monday In February each year and furnish a copy to each assessor and to each of the boards of review in the county and to the state tax commission. All notices of meetings of the boards of review shall give the tentative ratios and estimated multipliers pertaining to their jurisdiction. The tentative recommended equalization ratios and multiplying figures shall not prejudice the equalization procedures of the county board of commissioners or the state tax commission. (Subsection 2 of 34a not relevant-omitted)

211.34c Classification of assessable property required; tabulation of assessed valuations; transmission of tabulation and other statistical information; classifications of assessable real property; classifications of assessable personal property; buildings on leased land as improvements; total usage of parcel which includes more than 1 classification; notice to assessor and protest of assigned classification; decision; petition; arbitration; determination final and binding; construction of section.

Sec. 34c (1) Not later than the first Monday in March in each year, the assessor shall classify every item of assessable property according to the definitions contained in this section. Following the March board of review, the assessor shall tabulate the total number of items and the valuations as approved by the board of review for each classification and for the totals of real and personal property in the local tax collecting unit. The assessor shall transmit to the county equalization department and to the state tax commission the tabulation of assessed valuations and other statistical information the state tax commission considers necessary to meet the requirements of this act and Act No. 44 of the Public Acts of 1911, being sections 209.1 to 209.8 of the Michigan Compiled Laws.

(2) The classifications of assessable real property are described as follows:

(a) Agricultural real property includes parcels used partially or wholly for agricultural operations, with or without buildings, and parcels assessed to the department of natural resources and valued by the state tax commission. As used in this subdivision, "agricultural operations" means the following:

1. Farming in all its branches, including cultivating soil.

2. Growing and harvesting any agricultural, horticultural, or floricultural commodity.

3. Dairying.

4. Raising livestock, bees, fish, fur-bearing animals, or poultry.

5. Turf and tree farming.

6. Performing any practices on a farm incident to, or in conjunction with, farming operations. A commercial storage, processing, distribution, marketing, or shipping operation is not part of agricultural operations.

(b) Commercial real property includes the following:

1. Platted or unplatted parcels used for commercial purposes, whether wholesale, retail, or service, with or without buildings.

2. Parcels used by fraternal society.

3. Parcels used as golf courses, boat clubs, ski areas, or apartment buildings with more than 4 units.

(c) Developmental real property includes parcels containing more than 5 acres without buildings, or more than 15 acres with a market value in excess of its value in use. Developmental real property may include farm land or open space land adjacent to a population center, or farm land subject to several competing valuation influences.

(d) Industrial real property includes the following:

1. Platted or unplatted parcels used for manufacturing and processing purposes, with or without buildings.
2. Parcels used for utilities sites for generating plants, pumping stations, switches, substations, compressing stations, warehouses, rights-of-way, flowage land, and storage areas.
3. Parcels used for removal or processing of gravel, stone, or mineral ores, whether valued by the local assessor or by the state geologist.

(e) Residential real property includes the following:

1. Platted or unplatted parcels, with or without buildings, and condominium apartments located within or outside a village or city, which are used for, or probably will be used for, residential purposes.
2.  Parcels that are used for, or probably will be used for, recreational purposes, such as lake lots and hunting lands, located in an area used predominantly for recreational purposes.

(f) Timber-cutover real property includes parcels that are stocked with forest products of merchantable type and size, cutover forest land with little or no merchantable products, and marsh lands or other barren land. However, when a typical purchase of this type of land is for residential or recreational uses, the classification shall be changed to residential.

(3) The classifications of assessable personal property are described as follows:

(a) Agricultural personal property includes farm buildings on leased land and any agricultural equipment and produce not exempt by law.

(b) Commercial personal property includes the following:

1. All equipment, furniture, and fixtures on commercial parcels, and inventories not exempt by law.
2. Outdoor advertising signs and billboards.
3. Well drilling rigs and other equipment attached to a transporting vehicle but not designed for operation while the vehicle is moving on the highway.

4. Unlicensed commercial vehicles or commercial vehicles licensed as special mobile equipment or by temporary permits.

5. Commercial buildings on leased land.

(c) Industrial personal property includes the following:

1. All machinery and equipment, furniture and fixtures, and dies on industrial parcels, and inventories not exempt by law.

2. Industrial buildings on leased land.

3. Personal property of mining companies valued by the state geologist.

(d) Residential personal property includes a home, cottage, or cabin on leased land, and a mobile home that would be assessable as real property under section 2a except that the land on which it is located is not assessable because the land is exempt.

(e) Utility personal property includes the following:

1. Electric transmission and distribution systems, substation equipment, spare parts, gas distribution systems, and water transmission and distribution systems.

2. Oil wells and allied equipment such as tanks, gathering lines, field pump units, and buildings.

3. Inventories not exempt by law.

4. Gas wells with allied equipment and gathering lines.

5. Oil or gas field equipment stored in the open or in warehouses such as drilling rigs, motors, pipes, and parts.

6. Gas storage equipment.

7. Transmission lines of gas or oil transporting companies.

8. Utility buildings on leased land.

(4) Buildings on leased land of any classification are improvements where the owner of the improvement is not the owner of the land or fee and has not bound himself or herself to pay taxes levied against the land or fee and the improvement has been assessed as personal property pursuant to section 14(6).

(5) If the total usage of a parcel includes more than 1 classification, the assessor shall determine the classification that most significantly influences the total valuation of the parcel.

(6) An owner of any assessable property who disputes the classification of that parcel shall notify the assessor and may protest the assigned classification to the March board of review. An owner or assessor may appeal the decision of the March board of review by filing a petition with the state tax commission not later than June 30 in that tax year. The state tax commission shall arbitrate the petition based on the written petition and the written recommendations of the assessor and the state tax commission staff. An appeal may not be taken fiom the decision of the state tax commission regarding classification complaint petitions and the state tax commission's determination is final and binding for the year of the petition.

(7) The department of treasury may appeal the classification of any assessable property to the residential and small claims division of the Michigan tax tribunal not later than December 3 1 in the tax year for which the classification is appealed.

(8) This section shall not be construed to encourage the assessment of property at other than the uniform percentage of true cash value prescribed by this act. (This section last amended 1996, Act 476.)

211.5313 Special Purpose Meetings of Board of Review: July and December Meetings.

Sec. 53b. (1) If there has been a clerical error or a mutual mistake of fact relative to the correct assessment figures, the rate of taxation, or the mathematical computation relating to the assessing of taxes, the error or mutual mistake shall be verified by the local assessing officer and approved by the board of review at a meeting held 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. If approved, the board of review shall file an affidavit within 30 days relative to the errors or mutual mistake with the proper officials who are involved with the assessment figures, rate of taxation, or mathematical computation and all affected official records shall be corrected. If the error or mutual mistake 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 county treasurer may deduct the rebate from the appropriate tax collecting unit's subsequent distribution of taxes. The county treasurer shall bill to the appropriate tax collecting unit the tax collecting unit's share of taxes rebated. A correction under this subsection may be made in the year in which the error was made or in the following 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, and 7ee. 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 or 7ee 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 section 7cc and 7ee, 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 or 7ee as provided in this subsection, the board of review shall require the owner to execute the affidavit provided for in section 7cc or 7ee 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(6) through (8) 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(7).

(5) An owner or assessor may appeal a decision of the board of review under this section regarding an exemption under section 7ee 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. (This section last amended 1995, Act 74.)