Michigan 2023-2024 Regular Session

Michigan House Bill HB5866

Introduced
6/26/24  

Caption

Property tax: tax tribunal; certain tribunal determinations in assessment disputes as to the valuation of property; require. Amends 1973 PA 186 (MCL 205.701 - 205.779) by adding sec. 38.

Impact

The introduction of HB 5866 is expected to enhance the transparency and rigor surrounding property valuation disputes within the state. By mandating that tribunals state their findings of fact and conclusions clearly, the law will require adjudicators to provide a comprehensive rationale for their decisions, fostering greater accountability in the assessment process. Proponents argue that this increased clarity will benefit property owners and the assessing agencies alike, as it lays out explicit guidelines for valuation methods and comparability criteria.

Summary

House Bill 5866 seeks to amend the Tax Tribunal Act by adding a new section that outlines the procedures for determining the true cash value of real and personal property during assessment disputes. The bill specifies that the tribunal must independently assess various factors, including market conditions, supply and demand, and potential property uses. These assessments will help ensure accurate evaluations that reflect both the physical and legal constraints on the properties in question. The bill's emphasis on thorough, independent investigations aims to promote fairness in property taxation and valuation processes.

Contention

Despite the bill's potential benefits, there are points of contention among stakeholders. Critics may argue that the complexities involved in the additional requirements could lead to delays in the assessment process. There are concerns that the burden on the tribunal to produce detailed findings could overwhelm tribunal resources and lengthen disputes, particularly in cases involving numerous properties. Furthermore, the interpretation of financial feasibility and market comparability could be contentious, as differing viewpoints on valuation methodologies might lead to disparities in outcomes.

Companion Bills

MI HB5868

Same As Property tax: tax tribunal; certain tribunal determinations in assessment disputes as to the valuation of property; require. Amends sec. 3 of 1973 PA 186 (MCL 205.703).

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