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SOAHR 2010-001 DEPARTMENT OF TREASURY STATE TAX COMMISSION GENERAL RULES
Filed with the Secretary of State on December 8, 2010
These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.
(By authority conferred on the state tax commission by sections 9, 84, 85, and 86 of 1965 PA 380, MCL 16.109, 16.184, 16.185, and 16.186; section 150 of 1893 PA 206, MCL 211.150; sections 1 and 3 of
1927 PA 360, MCL 209.101 and 209.103; section 18 of 1974 PA 198, MCL 207.568; section 12 of 1976
PA 438, MCL 207.612; and section 33 of 1969 PA 306, MCL 24.233; and Executive Order No. 2009-
51.
R 211.401, R 211.403, R 211.404, R 211.405, R 211.407, R 211.408, R 211.409, R 211.421, R 211.422,
R 211.423, R 211.427, R 211.431, R 211.432, R 211.433, R 211.434, R 211.435, R 211.437, R 211.439,
R 211.441, R 211.442, R 211.444, and R 211.447 of the Michigan Administrative Code are rescinded; R 209.1, R 209.13, R 209.16, R 209.51, R 209.53, R 209.54, R 209.56, R 209.57, R 209.65, R 209.76, R
209.81, R 209.91, R 209.101, and R 209.111 of the Code are amended; and R 209.58, R 209.112, R
209.113, R 209.114, R 209.115, R 209.125, R 209.135, R 209.145, R 209.155 and R 209.165 are added
to the Code as follows:
PART 1. GENERAL PROVISIONS
R 209.1 Definitions.
Rule 1. As used in these rules:
(a) "Act" means 1893 PA 206, MCL 211.1 known as the general property tax act.
(b) "Assessing officer" includes, in addition to an assessor, an equalization director and employees of a county equalization department.
(c) “Assessing unit” means a township, city, or county.
(d) "Assessor" means an assessing officer of a township or city who is duly elected or appointed and certified by the commission under this act.
(e) "Commission" means the state tax commission created by 1927 PA 360, MCL 209.101.
(f) "Equalization director" means the head of a county equalization department appointed by the county board of commissioners and certified by the state assessor's board under the act and R 211.441(3).
(g) "Equalization study" means a determination of tentative equalized valuations for each class of real and personal property based on comparisons of existing assessed valuations and true cash valuations as prescribed by chapter 16 of the state tax commission assessors' manual as amended by state tax
commission bulletins, and shall be the beginning point for county and state equalization for the following year.
(h) "Manual" means the assessor's manual prepared and/or approved by the state tax commission in accordance with the provisions of MCL 211.10e.
R 209.13 Transcripts of meetings.
Rule 13. (1) The state tax commission shall record the meetings. These recordings shall not be transcribed.
(2) A party who desires to transcribe a meeting, or portion of a meeting, shall furnish a copy of the transcript to the commission without cost.
(3) Copies of tapes of the meetings will be provided upon written request and payment of a fee to be determined by the commission.
R 209.16 Exhibits presented at meetings.
Rule 16. Documents and papers offered in evidence by the parties at a meeting before the commission shall be submitted to the commission not less than 30 days before the scheduled meeting.
PART 5. INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
R 209.51 Certificate application.
Rule 51. An application for an industrial facilities exemption certificate for a facility to be situated in a previously established plant rehabilitation district or industrial development district shall be made on a form prescribed by and furnished by the commission. A completed application and required documents shall be filed with the commission. A local legislative body shall not approve an application or portion of an application unless it meets the requirements of 1974 PA 198, MCL 207.551 to 207.572.
R 209.53 Extension of time to complete project; request.
Rule 53. (1) A request for an extension of time for completion of a project, not to exceed 1 year, including the installation of all tangible personal property, provided for in section 15(2) 1974 PA 198, MCL 207.565(2), shall be filed with the local unit of government within the final year of the 2-year construction period.
(2) Upon receipt of a request for extension, the local unit may do any of the following:
(a) Deny the request.
(b) Approve the request with no change in the ending date of the certificate that was issued.
(c) Approve the extension of time for the completion of the project and a revised ending date on the certificate, not to exceed 1 year.
(3) A request for an extension of time for the completion of a project shall be filed with the commission by the certificate holder and shall be accompanied by a resolution of approval adopted by the local governmental unit.
R 209.54 Revision of final project cost; approval; request for revised certificate.
Rule 54. (1) If the final cost of a project, either the real or tangible personal property components, will exceed 10% of the estimated amount indicated on the original application form, a certificate holder shall request in writing that the local governmental unit approve the additional cost. Upon receipt of a request, the clerk of the local governmental unit shall notify in writing the assessor and the legislative body of each taxing unit and shall afford the applicant, the assessor, and a representative of the affected taxing units an opportunity for a hearing.
(2) If the scope of the project increases by either additional real and/or tangible personal property components, the certificate holder shall file an amended application and revised list of improvements with the clerk of the local unit. Upon receipt of an amended application, the clerk of the local governmental unit shall notify in writing the assessor and the legislative body of each taxing unit and shall afford the applicant, the assessor, and a representative of the affected taxing units an opportunity for a hearing.
(3) If a local unit of government approves a revised cost or revised scope under subrule (1) or (2) of this rule, the clerk of the local unit shall forward a copy of the amended application, revised list of improvements, and resolution of approval to the commission.
R 209.56 Certificate duration; extension of expiration date.
Rule 56. The commission shall not grant a certificate for real property covered under an industrial facilities
taxexemption certificate that is leased unless the lessee is responsible for the property tax liability of the property for the length of the certificate.R 209.57 Consideration of application or request of revocation.
Rule 57. All complete applications or requests of revocation for industrial facilities exemption certificates received through October 31 shall receive consideration and action by the commission before December 31. An application or request of revocation received on or after November 1 shall be considered by the commission contingent upon staff availability.
R 209.58 Simultaneous exemptions.
Rule 58. The commission shall not issue an industrial facilities exemption certificate for a property that is already included on another specific tax roll. Property covered under an industrial facilities exemption certificate may not be included on any other specific tax roll while receiving the industrial facilities exemption.
PART 6. HEARINGS
R 209.65 Hearings.
Rule 65. (1) A hearing before the commission shall be conducted pursuant to 1976 PA 267, MCL
15.261. Hearings regarding revocation or suspension of an assessor’s certification shall be conducted under 1969 PA 306, MCL 24.201.
(2) Hearings shall be conducted informally but shall be recorded. Copies of recordings of the hearing will be provided upon written request at a fee to be determined by the commission.
PART 7. WATER POLLUTION CONTROL EXEMPTION CERTIFICATE
R 209.76 Water pollution control exemption certificate.
Rule 76. (1) An applicant shall apply for a water pollution control exemption certificate on a form prescribed by and furnished by the commission. The applicant shall file a complete application and required documents with the commission. A preliminary review will be performed by staff. Complete water pollution applications shall be forwarded to the department of natural resources and environment for review and they will make a recommendation of approval, partial approval, or denial. The commission shall not approve an application, or portion of an application unless it meets the requirements of 1994 PA 451, MCL 324.3701 to 324.3708.
(2) Complete pollution control applications requesting exemption for new improvements, amendments, or transfers received through June 15 shall receive consideration and action by the commission before
December 31. An application received on or after June 16 shall be considered by the commission contingent upon staff availability.
(3) An owner of facilities replacing equipment previously exempted under a pollution control certificate may request the adjustment of costs by application to the commission on or before October
31. Requests received on or after November 1 shall receive consideration and action by the commission contingent upon staff availability.
(4) All objections to the department of natural resources and environment application review must be received in writing by the commission within 21 days of the date of the letter informing the applicant and local unit of the recommendation of the department of natural resources and environment. Written objections received after the 21-day period will be considered untimely filed.
(5) All requests of revocation for pollution control certificates received through October 31 shall receive consideration and action by the commission before December 31. A request of revocation received on or after November 1 shall be considered by the commission contingent upon staff availability.
PART 8. AIR POLLUTION CONTROL EXEMPTION CERTIFICATE
R 209.81 Air pollution control exemption certificate.
Rule 81. (1) An applicant shall apply for an air pollution control exemption certificate shall be made on a form prescribed by and furnished by the commission. The applicant shall file a complete application and required documents with the commission. A preliminary review will be performed by staff. A complete air pollution application shall be forwarded to the department of natural resources and environment for review and they will make a recommendation of approval, partial approval, or denial. An application, or portion of an application, shall not be approved unless it meets the requirements of 1994 PA 451, MCL 324.5901 to 324.5908.
(2) A complete pollution control
applications requesting exemption for new improvements, amendments, or transfers received through June 15 shall receive consideration and action by the commission before December 31. An application received on or after June 16 shall be considered by the commission contingent up staff availability.(3) An owner of facilities replacing equipment previously exempted under a pollution control certificate may request the adjustment of costs by application to the commission on or before October
31. Requests received on or after November 1 shall receive consideration and action by the commission contingent upon staff availability.
(4) All objections to the department of natural resources and environment application review must be received in writing by the commission within 21 days of the date of the letter informing the applicant and local unit of the recommendation of the department of natural resources and environment. Written objections received after the 21-day period will be considered untimely filed.
(5) All requests of revocation for pollution control certificates received through October 31 shall receive consideration and action by the commission before December 31. A request of revocation received on or after November 1 shall be considered by the commission contingent upon staff availability.
PART 9. OBSOLETE PROPERTY REHABILITATION EXEMPTION CERTIFICATE
R 209.91 Obsolete property rehabilitation exemption certificate.
Rule 91. (1) An applicant shall apply for obsolete property rehabilitation exemption certificate on a form prescribed by and furnished by the commission. The applicant shall file a complete application and any explanatory documents as determined by the commission with the commission. A local
legislative body shall not approve an application unless it meets the requirements of 2000 PA 146, MCL 125.2781 to 125.2797.
(2) All complete applications for obsolete property rehabilitation act exemption received through October 31 shall receive consideration and action by the commission before December 31. An application received on or after November 1 shall be considered by the commission contingent upon staff availability.
(3) All obsolete property rehabilitation act applications submitted to the commission must include a statement from the assessor of the local unit indicating the type and amount of obsolescence for the facility requesting consideration of exemption.
(4) All obsolete property rehabilitation act applications submitted to the commission must indicate the prior year’s actual taxable value. If the prior year’s taxable value was zero ($0) based on a prior year’s tax exempt status, the local governmental unit’s assessor shall determine the property’s prior year actual taxable value as if the property had not been tax exempt. An obsolete property rehabilitation exemption certificate will not be issued or frozen at a zero taxable value that is the result of a prior year’s tax exempt status.
(5) The commission shall not issue an obsolete property rehabilitation exemption certificate for a property that is already included on another specific tax roll. Property covered under an obsolete property rehabilitation exemption certificate may not be included on any other specific tax roll while receiving the obsolete property rehabilitation act exemption.
PART 10. NEW PERSONAL PROPERTY EXEMPTION
R 209.101 New personal property exemption.
Rule 101. (1) An applicant shall apply for new personal property tax exemption shall be made on a form prescribed by and furnished by the commission. A complete application and any explanatory documents as determined by the commission shall be filed with the commission. A local legislative body shall not approve an application unless it meets the requirements of 1998 PA 328, MCL 211.9f.
(2) An exemption for new personal property issued by the commission shall relate to all new personal property placed within the eligible district after the date of the resolution approved by the local jurisdiction.
(3) A new personal property exemption will not be issued for a property that is already included on another specific tax roll. Property covered under a new personal property exemption may not be included on any other specific tax roll while receiving the new personal property exemption.
PART 11. COMMERCIAL REHABILITATION EXEMPTION CERTIFICATE
R 209.111 Commercial rehabilitation exemption certificate.
Rule 111. (1) An applicant shall apply for commercial rehabilitation tax exemption certificates on a form prescribed by and furnished by the commission. An applicant shall file a complete application and any explanatory documents as determined by the commission with the commission. A local legislative body shall not approve an application unless it meets the requirements of 2005 PA 210, MCL 207.841 to 207.856.
(2) All complete applications for commercial rehabilitation exemption certificates received through October 31 shall receive consideration and action by the commission before December 31. An application received on or after November 1 shall be considered by the commission contingent upon staff availability.
(3) All commercial rehabilitation exemption applications submitted to the commission must indicate the prior year’s actual taxable value. If the prior year’s taxable value was zero ($0) based on a prior
year’s tax exempt status, the local governmental unit’s assessor shall determine the property’s prior year actual taxable value as if the property had not been tax exempt. A commercial rehabilitation exemption certificate will not be issued or frozen at a zero taxable value that is the result of a prior year’s tax exempt status.
(4) A commercial rehabilitation exemption certificate will not be issued for a property that is already included on another specific tax roll. Property covered under a commercial rehabilitation exemption certificate may not be included on any other specific tax roll while receiving the commercial rehabilitation exemption.
PART 12. NEIGHBORHOOD ENTERPRISE ZONE EXEMPTION CERTIFICATE
R 209.112 Neighborhood enterprise zone exemption certificate.
Rule 112. (1) An applicant shall apply for new or rehabilitation neighborhood enterprise zone exemption certificates on a form prescribed by and furnished by the commission. A complete new or rehabilitation application and any explanatory documents as determined by the commission shall be filed with the commission. A local legislative body shall not approve an application unless it meets the requirements of 1992 PA 147, MCL 207.771 to 207.787.
(2) An application for homestead neighborhood enterprise zone exemption certificates shall be made on a form prescribed by and furnished by the commission. A complete homestead application and required documents as determined by the commission shall be filed with the assessor of the local governmental unit. A local legislative body shall not approve an application unless it meets the requirements of 1992 PA 147, MCL 207.771 to 207.787.
(3) All complete applications or requests of revocation for new or rehabilitation neighborhood enterprise zone exemption certificates received through October 31 shall receive consideration and action by the commission before December 31. An application or request of revocation received on or after November 1 shall be considered by the commission contingent upon staff availability.
(4) All rehabilitation neighborhood enterprise zone exemption applications submitted to the commission must indicate the prior year’s actual taxable value. If the prior year’s taxable value was zero ($0) based on a prior year’s tax exempt status, the local governmental unit’s assessor shall determine the property’s prior year actual taxable value as if the property had not been tax exempt. A rehabilitation neighborhood enterprise zone exemption certificate will not be issued or frozen at a zero taxable value that is the result of a prior year’s tax exempt status.
(5) A neighborhood enterprise zone exemption certificate will not be issued for a property that is already included on another specific tax roll. Property covered under a neighborhood enterprise zone exemption certificate may not be included on any other specific tax roll while receiving the neighborhood enterprise zone exemption.
PART 13. COMMERCIAL FACILITIES EXEMPTION CERTIFICATE
R 209.113 Commercial facilities exemption certificate.
Rule 113. (1) An applicant shall apply for commercial facilities exemption certificates on a form prescribed by and furnished by the commission. An applicant shall file a complete application and any explanatory documents as determined by the commission with the clerk of the local governmental unit. A local legislative body shall not approve an application unless it meets the requirements of 1978 PA 255, MCL 207.651 to 207.668.
(2) The clerk of the local governmental unit shall file with the commission a copy of the commercial facilities exemption certificate and the commission shall maintain a record of all certificates filed.
(3) All commercial facilities exemption applications submitted to the commission must indicate the prior year’s actual taxable value. If the prior year’s taxable value was zero ($0) based on a prior year’s tax exempt status, the local governmental unit’s assessor shall determine the property’s prior year actual taxable value as if the property had not been tax exempt. A commercial facilities exemption certificate will not be issued or frozen at a zero taxable value that is the result of a prior year’s tax exempt status.
(4) A commercial facilities exemption certificate will not be issued for a property that is already included on another specific tax roll. Property covered under a commercial facilities exemption certificate may not be included on any other specific tax roll while receiving the commercial facilities exemption.
PART 14. TRAINING PROGRAMS AND EDUCATION
R 209.114 Education institution information.
Rule 114. (1) An educational institution, organization, or individual who seeks to have an assessor training program, course, or class approved shall submit a syllabus of the program course or class to the commission.
(2) The syllabus shall include all of the following information:
(a) An outline of the course or classes offered.
(b) The number of hours for each course.
(c) The instructor to be used.
(d) Reference and text material.
(e) Any other pertinent information.
PART 15. RATING AND CERTIFICATION
R 209.115 Rating of assessing units.
Rule 115. An assessing unit shall be rated as to the level of certification that is required to assess or equalize the entire unit. An individual may qualify at a level higher than the level assigned to his or her unit. Ratings are subject to review and revision on an annual basis. Factors to be considered by the commission include, but are not limited to, the following:
(a) Total state equalized value.
(b) Percentage of value for all commercial and industrial properties.
(c) Assistance given the local unit by the equalization department or state tax commission on special properties.
(d) The equivalent state equalized value of property taxed pursuant to 1974 PA 198, MCL 207.551, and 1978 PA 255, MCL 207.651.
(e) The number of residential and agricultural parcels in the local unit.
R 209.125 Certification of individuals by level.
Rule 125. (1) An application for certification of an individual shall be on the form prescribed by the commission. The application form shall be accompanied by a fee that is not refundable.
(2) An individual shall be certified by examination. An individual must complete in order, all levels of certification and meet all experience and education requirements as determined by the commission. Notification of examination results shall be provided pass/fail only.
(3) An individual shall assess only the properties covered by his or her certification level, unless conditional certification is granted by the commission.
(4) An individual assessing officer shall not assess, in total, property with state equalized values in excess of that which is annually determined to be the maximum equalized values, or in excess of other factors determined by the commission to be the maximum, for their level of certification.
R 209.135 Certification of appraisal firm personnel.
Rule 135. An appraisal firm or an individual doing business in this state and employed to make appraisals for assessment purposes shall employ a project supervisor who is certified at the level required of the assessing unit. The certification level shall be equal to the highest designated certification necessary for the units of government where the firm or individual will be conducting business. This rule shall not apply to an appraiser who is retained to prepare an appraisal for litigation purposes.
R 209.145 Renewal of certification.
Rule 145. (1) A certification may be renewed upon making application, paying the required fee, and providing evidence of attendance for the required number of hours of continuing education. The commission will issue a bulletin annually in accordance with MCL 211.150 and 209.104, which defines the number of continuing education hours, and any policies regarding renewal of certification. Assessors will be notified on their annual renewal application that this bulletin is available on the state tax commission website or can be mailed to them upon request. It is the responsibility of the certified individual to keep the commission informed of his or her current mailing address. Failure to receive notice by first-class mail does not nullify the annual requirement.
R 209.155 Revocation or suspension of certification.
Rule 155. A certification may be suspended or revoked for malfeasance of duties imposed by law, misfeasance of duties imposed by law, nonfeasance of duties imposed by law, falsification or plagiarism of an examination or an appraisal report submitted to the commission by an applicant or holder of a certification issued by the commission.
