STC Requirements of the Equalization Director

The Equalization process is vital to guaranteeing that properties are assessed at 50% of market value as is required by Article IX, Section 3 of the Michigan Constitution of 1963. County Equalization serves as a check on assessments determined at the local level, ensuring they are fair and equitable across the County.

The responsibilities of County Equalization rest primarily with each County’s Board of Commissioners. Recognizing the technical and difficult nature of equalization duties, the State, through the General Property Tax Act, requires each County to employ a certified Equalization Director to assist and advise the Board in fulfilling their duties.

In addition to the general purpose of ensuring fair and equitable assessments, statutory requirements of County Equalization include the collection and analysis of sales data, providing assessment assistance to local units, and providing the State Tax Commission with annual reports.

The purpose of this document is to provide County officials with information regarding the statutory and State Tax Commission guidelines for County Equalization. The policies can be found in the General Property Tax Act of 1893, as amended and State Tax Commission rules and publications.

Basic Requirements

Each County must establish a Department of Equalization and appoint a director of that department.  R 209.41 (1), MCL 211.34 (3)

The Director of the Equalization Department is to be appointed by and serve the County Board of Commissioners. MCL 211.10d (11)

The Director of the Equalization Department must be certified by the State Tax Commission at the level required by the State Tax Commission.  MCL 211.10d (11)

Two or more Counties may jointly establish a shared Equalization Department. Any joint Equalization Department must assist the Boards of Commissioners of each County in meeting the requirements of the General Property Tax Act and State Tax Commission rules and policy. MCL 211.34b

Annual Deadlines

By the third Monday in February, the Equalization Director must publish a statement showing the tentative recommended equalization ratios and estimated multipliers necessary to compute individual state equalized value of real and personal property for each classification in each local unit. MCL 211.34a (1)

By the Wednesday following first Monday in April or the tenth day after adjournment of the March Board of Review, whichever occurs first the Equalization Director must receive the completed assessment roll from each local unit of government. MCL 211.30 (6)

By the second Monday in April, the Equalization Director must prepare a report that recommends the equalized value of each class of real and personal property for each local unit and present it to the County board of Commissioners. R 209.41 (6)

By the third Monday in April, the Equalization Director must file form L-4023, reporting the final recommended state equalized values for each class, with the State Tax Commission for each local unit. R 209.41 (6), MCL 211.150(4)

By the first Monday in May, deadline to file official County Board of Commissioners report of County Equalization (L-4024) with the STC. R 209.52(5)

By the first Monday in May, the Equalization Director must compute these amounts and the current and immediately preceding year's taxable values for each classification of property that is for each unit of local government in the County. This must be filed with the State Tax Commission. R 209.5(2) MCL 211.34d (2)

By the first Monday in June, the Equalization Director must deliver the statement of the computations to the county treasurer. The county equalization director must also calculate the millage reduction fraction for each unit of local government in the county for the current year. MCL 211.34d (3)

By the fourth Monday in June, the Equalization Director must report all of the following to the State Tax Commission: MCL 211.27d

1.   Total taxable value of all property in the county as of the fourth Monday in May.
2.   Total taxable value for each classification of real and personal property.
3.   Total taxable value of all property in the county that receives a principal residence exemption or qualified agricultural property exemption.
4.   Total taxable value of all property in the county for which a principal residence exemption or a qualified agricultural property exemption has not been granted.

By June 30, the Equalization Director shall file an interim status report with the State Tax Commission. R 209.41 (4)

By November 1, the Equalization Director must deliver the year’s sales studies to the State Tax Commission.

By October 31, the Equalization Director submits apportionment (L-4402) to the STC. MCL 211.37 and 207.12