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MCAO Module 6 - Property Tax Administration

Terms in this set (130)

How many assessment rolls are there for each assessing unit?
There is only one annual assessment roll for each assessing unit.
What is an assessment roll?
An assessment roll is the roll in which assessments are determined by the assessing officer, reviewed by the Board of Review, equalized by the County Board of Commissioners.
Who must complete the assessment roll and what law must they follow?
The assessment roll must be completed in accordance with the General Property Tax Act.

It must be completed by a duly elected or appointed assessor who is properly certified by the STC.
Prior to the Board of Review, the assessment roll shall have what attached?
Prior to presentation to the Board of Review, the Assessment Roll shall have a certificate attached signed by the assessor including their certification number.
The assessment roll shall be completed and prepared for presentation to the BOR no later than when?
It shall be presented to the BOR no later than the first Monday in March for Townships and as provided by Charter for Cities.
How are all entries in the annual assessment roll made?
All entries in the annual assessment roll must be machine-printed or handwritten in ink.
How should you correct an erroneous entry in the assessment roll?
An erroneous entry should be lined out, initialed and dated in ink. There should not be any erasures in the assessment roll.
How must each official action to change an assessment by the BOR be entered on the assessment roll?
Each official action must be entered by the Board in permanent ink in the column reserved for the BOR.
After an assessment roll has been reviewed by the BOR, what is permanently attached to the roll?
After the roll has been reviewed by the BOR, a certificate signed by the members of the BOR is permanently attached to the roll (form 2691 or L-4037).

The certificate contains the total valuation of each class of real property and of personal property as determined by the BOR.
After the BOR attaches the certificate to the assessment roll, what is the assessing officer prohibited from doing?
After the certificate is attached, an assessing officer is not permitted to make any entries to the roll except by written authority of the MTT, the STC, or court order.

NOTE - this includes situations where the assessor discovers an error on the assessment roll.
The July and December Boards of Review can correct mutual mistakes of fact, clerical errors, or qualified errors on the assessment roll for what years?
They can only correct those types of errors for the current year and one year prior.
Omitted or incorrectly reported property liable for taxation can be added or corrected on the assessment roll by who and for what years?
It can be added or corrected by the STC for the current assessment year and two years prior.
The completed assessment roll must be delivered to the County Equalization Director not later than when?
The BOR's completed assessment roll must be delivered to the CED not later than 10 days after the BOR adjourns OR the Wednesday following the first Monday in April, whichever happens first.
What columns must be on each assessment roll?
1. Name and address of the owner or occupant
2. Property description or permanent parcel number including the school district code and the property classification
3. Assessor's valuation
4. Board of Review valuation
5. MTT or STC valuations
On the Assessment Roll, the name of the owner of record should be listed. If the owner, occupant, or possessor is not known, then what should be listed?
"Unknown" should be listed.
On the Assessment Roll, for all assessable property the description could should include what?
It should include:
- parcel code number
- the legal description (by section and plat)
- the number of acres
- location of personal property (if the owner has more than one personal property assessment)
- school district
- property class

NOTE - the roll should include descriptions of all real estate, whether its taxable or exempt
All assessing officials must maintain records relevant to the assessments, including what?
They should all maintain:
- appraisal record cards
- historical assessment data
- tax maps
- land value maps
The GPTA requires that all property assessment rolls and property appraisal cards shall be available for inspection and copying when?
All property assessment rolls and property appraisal cards shall be available for inspection and copying during customary business hours.
What does the BOR have full authority to do on its own motion?
- change assessments
- add omitted property to the roll which is liable for assessment

NOTE - the person who is assessed must be promptly notified and granted an opportunity to protest.
Every person who makes a request, protest, or application to the Board of Review for the correction of the assessment of the person's property shall be notified in writing of the Board of Review's action not later than when?
first Monday in June
It is essential that all descriptions of exempt real property be included in the Assessment Roll and listed as what?
All exempt property should be listed as "Exempt"

Partially exempt real property descriptions should also be included along with the reason for exemption and the amount of the exemption.
Special Act assessments are not included with assessments of the ad valorem assessment roll and are not subject to Equalization. This includes property taxable under the following Acts:
- Exempt Property of Non-Exempt Entity
- Industrial Facilities Tax
- Commercial Facilities Tax
- Technology Park Facilities
- Department of Natural Resources Payment in lieu of Taxes (DNR PILT)
- Commercial Forest
- Commercial Rehabilitation Act
- Obsolete Property Rehabilitation Act
- Neighborhood Enterprise Zone
A computerized database system as the assessment is only permitted if the assessor of the local tax collecting unit and the local tax collecting unit itself provide what?
It is permitted provided that the system and procedures used adhere to the requirements of the GPTA.

The assessor and local tax collecting unit must provide certain certifications to the STC about the computerized database system so that the STC can check that it is in conformance with the Act.
Who creates the Tax Roll?
The Tax Roll is created by the assessor and is separate and distinct from the Assessment Roll.
What columns should the Tax Roll include?
- Property owner, agent, and address
- Property description including PIN, class, and school district
- Assessed Valuation
- SEV of the property
- for each tax and special assessment
- for the total of all taxes and special assessments spread on the tax roll
On or before September 30, each taxing authority must complete and submit what to the County Board of Commissioners?
Form 614, aka 4029, which is the Tax Rate Request - Millage Request Report
When does the County Board of Commissioners consider millage requests?
It considers millage requests at their October session and adopts an apportionment report certifying the tax rates to be used in computing taxes to be levied for the year by each assessing unit.
After the Tax Roll has been completed, the Township Supervisor will complete and deliver what?
The Township Supervisor will complete a warrant and deliver the Tax Roll to the Treasurer for collection.

NOTE - the warrant has to be signed by the official assigned the responsibility through City Charter or the City Assessor (if Charter is silent).
Treasurers and Assessors are not permitted to use a computerized Tax Roll unless what?
They are not allowed to use a computerized Tax Roll unless it is approved for use by the STC.
The STC document "Supervising Preparations of the Assessment Roll" provides what?
It provides the responsibilities of an assessor of record when certifying an assessment roll. Assessors have to certify that they followed the requirements contained in this document when signing the roll.

NOTE - it doesn't tell them when to start or do their work; assessors are responsible for managing their time to meet statutory deadlines.
To be an assessor of record for a local unit, you must fill out what and send it to who?
You need to fill out and send Form 4689 (Request for Change in Personal or Employment Information, aka "Change of Assessor of Record") to the STC.
The annual assessment cycle runs from when to when?
It runs from April through March.
When must the BOR complete its review of protests of AV, TV, property classification, and denial of qualified ag property exemptions?
the first Monday in April
When must the assessor file Form L4021 with County Equalization and Form L4022 with County Equalization and the STC?
It must file these forms immediately following the adjournment of the BOR.

NOTE - L4022 has to be signed by the assessor.
When must the township supervisor or assessor deliver the completed assessment roll (w/ BOR certification) to the County Equalization Director?
It must deliver the completed assessment roll to the CED 10 days after the BOR adjourns OR by the Wednesday following the first Monday in April (whichever happens first).
When does the County Board of Commissioners meet for its equalization session?
Tuesday following the second Monday in April.
When does the equalization director file a separate STC form L-4023 for each unit in the county with the STC?
Not later than the third Monday in April.

NOTE - form L-4023 is the "Analysis for Equalized Valuation" form
What is the deadline for filing the Farmland / Qualified Ag Exemption Affidavit (Form 2599) with the local assessor if the property is NOT classed as ag or if the assessor needs more info to determine whether the property includes structures that are not exempt?
May 1
What is the deadline for filing a Principal Residence Exemption (PRE) Active-Duty Military Affidavit (Form 4660)? And, how long does this allow military personnel to rent or lease their principal residence?
May 1

It allows them to retain a PRE for up to three years if they rent or lease their principal residence while away on active duty
When must county equalization be completed and when must the county file the official report (form L-4024) with the STC?
It must be completed before the first Monday in May and the L-4024 form must be filed with the STC at that time.
When shall the assessor file a tabulation of taxable valuations for each class of property with the County Equalization Director on form L-4025? What calculations is this form used for?
The form must be filed on or before the first Monday in May. This form is used in the "Headlee" calculations.
When is preliminary state equalization?
Preliminary state equalization valuation recommendations are presented to the STC on the second Monday in May.
When must the County Equalization Directors complete form L-4028 for millage reduction fractions with all information available within each single county?
A copy of the L4028 must be filed with the STC by the third Monday in May.
When is final State Equalization?
The final state equalization order is issued by the STC on the fourth Monday in May.
When must appeals of property classified as commercial real, industrial real, developmental real, commercial personal, industrial personal be filed in a written petition with the MTT?
On or before May 31 of the tax year involved.
When is the deadline for filing PRE Affidavits for the summer tax levy? What other forms are due on this day?
PRE Affidavits must be filed on June 1 for the summer tax levy

June 1 is also the deadline for the initial request of a Conditional Rescission of the PRE and to file the Foreclosure Entity Conditional Rescission of the PRE
When is the deadline for notifying a protesting taxpayer in writing of the MBOR action?
First Monday in June.
When does the County Equalization Director file the completed and verified form L-4028 with the County Treasurer and the STC?
It must be filed with the County Treasurer and the STC on or before the first Monday in June.

NOTE - form L-4028 is the millage reduction fraction computation form

NOTE - before filing this form, the CED calculates the current year millage reduction factor include those for inter-county taxing jxs
When does the local assessor file the form L-4626 ("Assessing Officer's Report of Taxable Value as of State Equalization") with the STC?
The local assessor must file it with the STC no later than June 15.
When shall the Equalization Director file a tabulation of final taxable valuations with the STC on form L-4046?
Not later than the fourth Monday in June.
When shall the County Equalization Director file the Interim Status Report of the ongoing study for the current year with the STC?
Not later than June 30.
What is the deadline to appeal the current year classification of property to the State Tax Commission?
June 30
When may the Board of Review be convened in July by the assessing officer to correct qualified errors?
On the Tuesday following the third Monday in July.
What is the deadline for appeals of assessed valuation, taxable valuation, or the percentage of qualified agricultural property exemption after BOR action of property classified as residential real, ag real, timber-cutover real, or ag real to be filed by a written petition with the MTT for the tax year involved?
July 31
When must the financial officer of each unit of government file form L-4029 (Tax Rate Request form) to the Equalization Department?
It is due on or before September 30 and it is a computation of the tax rates.

NOTE - it is suggested that this form is completed and submitted to the Equalization Department in June for review.
When does the County Board of Commissioners examine certificates and direct the spread of taxes in terms of millage rates to be spread on taxable valuations?
The County Board of Commissioners does this during its annual session in October.
When should the results of the equalization studies be reported to assessors of each township and city?
December 1
When may a special BOR meeting be convened in December by the assessing officer to correct clerical errors?
The Tuesday following the second Monday in December.
What day is considered tax day?
December 31 (meaning, the day valuations are set for all properties within the local unit)
What is the due date for filing Count Equalization Department studies done during the year with the STC for all classifications in all units on form L4018?
December 31, but since it is a holiday the next business day is the actual filing deadline.
When must personal property statements be mailed by the assessor?
January 10
What is the deadline for a 'qualified business' to submit STC form L-4143 for 'qualified personal property' to the local assessor?
February 1
When shall the County Equalization Director publish in a newspaper the tentative equalization ratios and estimated SEV multipliers for the year?
On or before the third Monday in February
When is the deadline for filing personal property statements including Form 5076 Small Business Taxpayer Exemption and Form 5278 Eligible Manufacturing Personal Property Exemption?
February 20

NOTE - it is also the deadline for taxpayers to file an exemption for heavy earth moving equipment
The local assessor shall send a notice of assessment change via first class mail to all property owners where the assessed value has increased by what date?
Not less than fourteen days prior to the March Board of Review

NOTE - the STC recommends that the local unit send the notice to all property owners regardless if the AV is going up or down
When must a notice be published giving the date, time, and place of the March Board of Review meetings?
At least one week prior to the March Board of Review.

NOTE - the notice must be published in 3 successive issues of the newspaper or by posting in 5 conspicuous places in the Township.
When must the assessment roll be completed and certified by the local assessor?
On or before the first Monday in March (but note that local charter deadlines may vary)
When shall the assessor submit the assessment roll to the Board of Review? And, when shall the BOR conduct its organizational meeting?
The assessor must submit the roll to the BOR by the Tuesday following the first Monday in March. That is the same day that the BOR should conduct its organizational meeting.
When is the MBOR required to meet for appeals?
The BOR must meet on the second Monday in March. The meeting can't start before 9 AM or after 3 PM.

NOTE - local body can choose a different date for this meeting.
What is the BOR's responsibility?
It is the BOR's responsibility to make an independent judgement based on the facts and law.

Board members must follow the state Constitution, the GPTA, and the STC rules and guidelines.
What is the main function of the BOR?
The BOR's main function is to assure the correctness of details posted to the assessment roll. As such, the Board can order changes to property value and order property to be exempt/not exempt.

Boards of Review were created to do "whatever is necessary to make the roll comply" with the GPTA.

July and December BORs can also correct clerical errors and mutual mistakes of fact.
A BOR is composed of local persons. What are the eligibility requirements for Board members?
- 2/3 of the BOR must be property owner in the jx
- electors of the township (US citizen, 18 years, resided in township for at least 30 days)
Who cannot serve on the BOR?
- the assessor
- assessor relatives (spouse, parent, sibling, child)
- member of the Township Board
How many alternative members can be appointed to the BOR?
A township Board can appoint no more than two alternate members for the same term as regular members.
What are the duties of the chairperson of the BOR?
- call meetings to order, call for motions and votes, and all other necessary actions to open and close the meetings
- assure orderly conduct during the meeting
- see that orders and procedures are adopted
- conduct official duties on behalf of the Board (administer oaths and sign docs)
- keep the hearings on schedule and make sure everyone heard in a reasonable fashion
What are the required times for the appeal meeting on the second Monday in March?
It cannot start before 9 AM or after 3 PM.

Board must meet for a minimum of 6 hours that day.

Board must hold at least 3 hours of its required sessions after 6 PM.
Notice of the BOR meetings must be provided when and how?
Must be provided at least one week before the meeting.

Must be published in a generally circulating newspaper of the area in 3 successive issues.

If no newspaper, it has to be posted in 5 conspicuous places in the Township.
When must the assessors send out their assessment change notices?
At least 14 days before the first meeting of the Board.

NOTE - the STC determined that means not less than 14 days before the first appeal meeting, not 14 days before the organizational meeting.
Representatives who are not the owners of property being appealed can be required to do what by the Board?
Representatives can be required to bring proof, in a written document, that they are authorized to represent the property owner.

NOTE - this requirement should be established as a policy prior to the commencement of the annual BOR meetings.
Non-resident taxpayers are not required to do what at the BOR hearings?
Non-resident taxpayers are not required to appear in person. They can appeal bi filing a letter.

NOTE - localities can by resolution also allow residents to file a protest by letter without an appearance.
Cities and Charter Townships may require that the taxpayer appeal to who as a prerequisite to an appearance before the BOR?
They can require that taxpayers appeal to the ASSESSOR as a prerequisite to an appearance before the BOR.
When must MBORs complete their work?
By the first Monday in April.

REMEMBER - the assessment roll has to be turned over to County Equalization by the Wednesday following the first Monday in April or 10 days following the close of the MBOR (whichever is first).
The actions of the BOR must be recorded in a specific manner and format. What does this include?
Board must document its minutes and record its decisions on forms 4035 and 4035a (whenever a change causes the TV to change).

4035 must include WHY the BOR made a determination

Minutes must include:
- day, time, and place of meetings
- members presented
- log ID'ing hearing date, petition number, petitioner's name, PIN, type of appearance, type of appeal, action of the Board
- actual hours in session w/ time of adjournment
Persons making a protest, request, or application are to be notified in writing of the Board's action by when?
Persons are to be notified no later than the first Monday in June.

Notice must include a statement of the right to appeal tot he Tax Tribunal (or STC for classification appeals).
The BOR shall complete review of the assessment roll and then a majority of the BOR must what?
After reviewing the roll, a majority of the Board must endorse it and sign a certification.

The roll + certification is turned back over to the assessor.
The MBOR has the authority to change what?
It has the authority to change the current year's assessments.

It has the authority to hear petitions about property class.

It has the authority to hear poverty exemptions.

Hear appeals re: discontinuance of immediately preceding year's Qualified Ag Exemption.
The MBOR does NOT have the authority to do what?
Change assessments for any prior year.

Hear appeals of PRE denials or New Qualified Ag Exemptions.

Make across the Board adjustments to assessments.

Change, alter, or defeat an equalization factor.
Only the MBOR (not the July or December Boards) can hear petitions regarding what?
About the classification of property. The July and December Boards cannot change classifications.
According to the Michigan Supreme Court, a BOR may NOT make what kind of adjustments to assessments?
A BOR cannot make wholesale or across the board adjustments to assessments. It must consider each parcel and act upon each individually.
A BOR cannot raise or lower the Tentative TV unless what?
A BOR cannot raise or lower the Tentative TV UNLESS it also raises or lowers the AV and/or capped value.

NOTE - an exception is if there was a transfer of ownership on a property and the assessor hadn't uncapped the TV (or if the opposite occurred, improper uncapping)
The BOR cannot reject or prepare an assessment roll, but must do what instead?
The BOR must consider the assessment roll prepared by the assessor (rather than reject it and/or prepare its own roll).
PREs are brought to which BOR meeting?
July and December BORs have authority to grant PREs for the current year and up to three years prior.

The MBOR does NOT have authority to do anything with PREs.
Which BOR can hear poverty exemptions?
All BORs can hear poverty exemptions, BUT July and December boards cannot hear poverty exemptions denied at the MBOR of the same year.
Once Equalized, the assessment roll can only be adjusted or corrected by order of what bodies?
Once equalized, the assessment roll can only be adjusted or corrected by order of the BOR, STC, or MTT.
If convened, when does the July BOR meet?
It meets on the Tuesday following the third Monday in July.
If convened, when does the December BOR meet?
It meets on the Tuesday following the second Monday in December.
Unlike the March meetings, the BOR meetings in July and December may start and end when?
Unlike the March meetings, the July and December meetings may start and end at times established by the BOR. There are also no specific notice requirements in the statute for the July and December Boards.
What is the difference between the actions that may be taken at the MBOR and those that may be taken at the July and December meetings?
MBOR - Board can exercise its full powers. Only exception is that it can't hear appeals re: new exemption applications where the deadline to file is after the MBOR meeting.

July and December - cannot hear a petition that it already considered earlier in the year. These meetings are for more limited purposes.
A "qualified error" means 1 or more of the following:
1. Clerical error re: AV, rate of taxation, mathematical computation about the assessing of taxes
2. mutual mistake of fact
3. adjustment or an exemption
4. error of measurement or calculation of the physical dimensions or components of real property being assessed
5. error of omission or inclusion of a part of assessed real property
6. error recording the correct taxable status of assessed real property
7. error made by taxpayer in preparing their personal property statement
8. error made in denial of a claim of exemption for personal property
How did the Michigan Court of Appeals clarify the meaning of the term "clerical error"?
It held that the July and December BORs are allowed to correct clerical errors of a typographical or transpositional nature

Those BORs canNOT revalue or reappraise property when the reason for action is that the assessor did not originally consider all relevant info (even if the reason they failed to consider that info was an admin error)
The Michigan Supreme Court clarified the meaning of the term "mutual mistake of fact" and defined it as what?
It held that a mutual mistake of fact is "an erroneous belief, which is shared and relied on by both parties, about a material fact that affects the substance of the transaction."
The MTT is what type of agency?
It is a quasi-judicial administrative agency in the Michigan Department of Licensing and Regulatory Affairs (LARA).
What type of disputes does the MTT have authority over?
It has jx over assessment disputes relative to both property and non-property tax matters.
The MTT is divided into what two divisions?
The Entire Tribunal and the Small Claims Division.
The MTT's Small Claims Division hears what type of appeals?
It hears:
- any appeal exclusively abuot a homestead or other residential or ag real property
- any appeal about commercial or industrial real or personal property if the SEV in contention is no more than 100k
What kind of hearing process does the MTT small claims division utilize?
An informal hearing process; there is no formal record taken of the hearing and parties usually represent themselves.

Most hearings last about 30 minutes are held telephonically.
Where does the MTT hold property tax appeal hearings?
- In the county where the property is located
- In a county adjoining the county where the property is located
- telophonically
Where does the MTT hold non-property tax appeal hearings?
At the Tribunal's Lansing office. The presiding judge is a hearing referee, a hearing office (ALJ), or a Tribunal member.
What type of hearing process does the Entire Tribunal use?
It uses a formal hearing process to resolve more complicated appeals.

There is a formal record of the hearing, parties are usually represented by attorneys, hearings range from 1 day to 2+ months long, held in the Lansing office.

Presiding judge is a Tribunal member of an ALJ / hearing officer (no hearing referees).
Hearings before the MTT are original, independent and considered to be what?
De novo
What is the MTT's mission?
Provide all citizens the opportunity to resolve state and local tax disputes at a fair and impartial hearing and to receive a timely, written, quality decision that is based on the evidence submitted and the law.
What is the most important thing an assessor should remember when appearing at either a Small Claims or Entire Tribunal hearing?
Conduct yourself with decorum at all times and be prepared.
A property tax appeal contesting a property's SEV or TV is heard in the Small Claims Division if any of what is involved?
It is heard in small claims if any of the following is involved:
- real property classified as residential
- real property that has a PRE
- real property classified as agricultural
- real property classified as residential or ag w/ less than 4 rental units
- any other property where the value in contention is less than 100k
A non-property tax appeal can be heard in the Small Claims Division if the amount of tax in dispute is not more than what?
$20,000 (not including interest and penalty charges)
A special assessment appeal may be heard in the Small Claims Division if the amount of the special assessment in dispute is not more than what?
$20,000
What is the fee for filing a property tax appeal in small claims if the property has at least a 50% PRE for all the tax years at issue?
There is no fee for a property tax appeal in small claims as long as the property has at least 50% PRE for all tax years at issue.
Appeals to the MTT must be initiated by who?
Must be initiated by the taxpayer.
Taxpayers for property that is classified residential, agricultural, or timber cutover must first protest their property's assessment to their local Board of Review during the March appeal meetings. If the taxpayer is not satisfied with the decision made by the BOR, they must file a Petition to the MTT by when?
July 31
Property that is classified industrial, commercial, developmental, or utility personal may "skip" the MBOR and appeal directly to the MTT by when?
May 31
How is an appeal to the MTT initiated by a Taxpayer?
Filing a petition form with the Tribunal on or before the deadline
The law provides that who has the burden of proof in establishing the TCV of the property?
The Petitioner
A comparison of assessments is considered what type of indicator of a property's TCV?
An unreliable indicator of a property's TCV. The market/sales approach is often relied upon as the best evidence of a residential property's TCV.
The Entire Tribunal hears what type of cases?
The cases that do not fall under the jx of the small claims division
What is the purpose of a reappraisal?
To identify, list, and value all individual parcels with all parcel improvements and all unimproved parcels within an entire local unit of government.
There are requirements that must be met when a local unit is completing a reappraisal. To ensure the reappraisal is based on supportable market data, what is reviewed?
1. Tax Maps must be current.
2. Land Value Maps and Land Value analysis must be constructed using data from the same time period as the sales study (24 or 12 months)
3. ECFs must be constructed using data from the same period as the sales study
4. ECF and land value importance
5. Complete physical inspection of all properties
6. Uniformity
7. Additional terms and requirements
What are some reasons a municipality will undergo a reappraisal?
- local unit realizes it needs to update its record and parcel information by way of complaints made to the Board of Review
- STC realizes that record cards need updating via AMAR
- STC orders it because of failure to correct deficiencies
What is the Administrative Fee?
The admin fee is 1 percent of the total bill per parcel. State law limits what this fee can be used for
What is the Freedom of Information Act?
Assessing records are public records and can be accessed by the public under FOIA law, FOIA also limits the fees the assessor can charge
What does the AMAR reflect?
It reflects the minimum assessing requirements of a local unit of government based on statute and STC rules, policy, bulletins, and publications.
What is the basic intent of the Open Meetings Act?
to strengthen the right of all Michigan citizens to know what goes on in government by requiring public bodies to conduct nearly all business at open meetings
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