Act No. 176
Public Acts of 2023
Approved by the Governor
October 24, 2023
Filed with the Secretary of State
October 24, 2023
EFFECTIVE DATE: December 31, 2023
STATE OF MICHIGAN
102ND LEGISLATURE
REGULAR SESSION OF 2023
Introduced by Senator Hertel
ENROLLED SENATE BILL No. 331
AN ACT to amend 1893 PA 206, entitled “An act to provide for the assessment of rights and interests, including
leasehold interests, in property and the levy and collection of taxes on property, and for the collection of taxes
levied; making those taxes a lien on the property taxed, establishing and continuing the lien, providing for the
sale or forfeiture and conveyance of property delinquent for taxes, and for the inspection and disposition of lands
bid off to the state and not redeemed or purchased; to provide for the establishment of a delinquent tax revolving
fund and the borrowing of money by counties and the issuance of notes; to define and limit the jurisdiction of the
courts in proceedings in connection with property delinquent for taxes; to limit the time within which actions may
be brought; to prescribe certain limitations with respect to rates of taxation; to prescribe certain powers and duties
of certain officers, departments, agencies, and political subdivisions of this state; to provide for certain
reimbursements of certain expenses incurred by units of local government; to provide penalties for the violation
of this act; and to repeal acts and parts of acts,” by amending sections 9o, 19, and 30 (MCL 211.9o, 211.19, and
211.30), section 9o as amended by 2021 PA 150, section 19 as amended by 2017 PA 261, and section 30 as amended
by 2013 PA 153.
The People of the State of Michigan enact:
Sec. 9o. (1) Beginning December 31, 2013, eligible personal property for which an exemption has been properly
claimed under this section is exempt from the collection of taxes under this act.
(81) 2
(2) An owner of eligible personal property shall claim the exemption under this section in 1 of the following
ways, as applicable:
(a) For a claim of exemption as to eligible personal property under subsection (9)(c)(ii)(A), by filing a statement
with the local tax collecting unit in which the eligible personal property is located not later than February 20 of
the first year the exemption is claimed or, if February 20 of the first year the exemption is claimed is a Saturday,
Sunday, or legal holiday, not later than the next day that is not a Saturday, Sunday, or legal holiday. For purposes
of a statement delivered by the United States Postal Service, the filing is timely if the postmark date is on or
before the filing deadline prescribed in this subdivision. If the statement is not timely filed with the local tax
collecting unit, a late submission may be filed directly with the March board of review before its final adjournment
by submitting the statement prescribed in this subdivision. The board of review shall not accept a filing after
adjournment of its March meeting. An appeal of a denial by the March board of review may be made by filing a
petition with the Michigan tax tribunal within 35 days of the denial notice. A statement filed under this
subdivision must be in a form prescribed by the state tax commission and must include any address where any
property owned by, leased to, or in the possession of that owner or a related entity is located within that local tax
collecting unit. In the statement, the owner shall attest that the combined true cash value of all industrial
personal property and commercial personal property in that local tax collecting unit owned by, leased to, or in the
possession of that owner or a related entity on December 31 of the immediately preceding year is less than
$80,000.00. An exemption granted pursuant to a claim filed under this subdivision remains in effect if the
property’s owner subsequently files a claim for exemption under subdivision (b) and 1 of the following conditions
is met:
(i) It is determined that the property does not qualify for the exemption under this section as eligible personal
property under subsection (9)(c)(ii)(B) but instead continues to qualify for the exemption under this section as
eligible personal property under subsection (9)(c)(ii)(A).
(ii) After having been granted exempt status as eligible personal property under subsection (9)(c)(ii)(B), it is
determined that the property’s exempt status has returned to eligible personal property under
subsection (9)(c)(ii)(A).
(b) For a claim of exemption as to eligible personal property under subsection (9)(c)(ii)(B), by annually filing a
statement of personal property under section 19 with the local tax collecting unit in which the eligible personal
property is located. Together with the statement of personal property, the owner shall also file a statement, in a
form and manner prescribed by the department of treasury, attesting to the combined true cash value of all
industrial personal property and commercial personal property in that local tax collecting unit owned by, leased
to, or in the possession of that owner or a related entity on December 31 of the immediately preceding year, and
that this combined true cash value is equal to or greater than $80,000.00 and less than $180,000.00. Not later
than April 1 of each year, local tax collecting units shall transmit to the department of treasury, in a form and
manner prescribed by the department of treasury, summary information of all exemptions granted each year
pursuant to filings made under this subdivision for purposes of providing the department of treasury with data
needed to compensate municipalities for revenue lost as a result of those exemptions, as described in section 3a
of the Michigan trust fund act, 2000 PA 489, MCL 12.253a. A claim of exemption filed under this subdivision must
be treated as a claim of exemption filed under subdivision (a) if it is determined that the property for which the
exemption is claimed qualifies for the exemption under this section as eligible personal property under
subsection (9)(c)(ii)(A).
(3) If a statement claiming the exemption under subsection (2)(a) is filed as provided in subsection (2)(a), the
owner of that eligible personal property is not required to file a statement under section 19.
(4) A person who claims an exemption for eligible personal property under this section shall maintain books
and records and shall provide access to those books and records as provided in section 22. A local unit of
government may develop and implement an audit program that includes, but is not limited to, the audit of all
information submitted under subsection (2) for the current calendar year and the 3 calendar years immediately
preceding the commencement of an audit. Any assessment as a result of an audit must be paid in full within
35 days of issuance and must include interest as described in subsection (5).
(5) All of the following apply to an exemption granted under this section pursuant to a claim of exemption filed
under subsection (2)(a):
(a) Except as otherwise provided in subsection (2)(a), the exemption remains in effect until the personal
property is no longer eligible personal property under subsection (9)(c)(ii)(A). An owner whose personal property
is no longer eligible personal property under this subdivision shall do 1 of the following, as applicable:
(i) If the owner intends to claim that the property is eligible personal property under subsection (9)(c)(ii)(B),
file for the exemption under subsection (2)(b). 3
(ii) If the owner does not intend to claim that the property is eligible personal property under
subsection (9)(c)(ii)(B), file by February 20 of the year that the property is no longer eligible a rescission and the
statement required under section 19. The rescission must be filed on a form prescribed by the department of
treasury. Upon receipt of a rescission form, the local assessor shall immediately remove the exemption.
(b) An owner who fails to file a rescission and whose property is later determined to be ineligible for the
exemption will be subject to repayment of any additional taxes with interest as described in this subdivision.
Upon discovery that the property is no longer eligible personal property, the assessor shall remove the exemption
of that personal property and, if the tax roll is in the local tax collecting unit’s possession, amend the tax roll to
reflect the removal of the exemption, and the local treasurer shall within 30 days of the date of the discovery issue
a corrected tax bill for any additional taxes with interest at the rate of 1.25% per month or fraction of a month
and penalties computed from the date the taxes were last payable without interest or penalty. If the tax roll is in
the county treasurer’s possession, the tax roll must be amended to reflect the removal of the exemption and the
county treasurer shall within 30 days of the date of the removal prepare and submit a supplemental tax bill for
any additional taxes, together with interest at the rate of 1.25% per month or fraction of a month and penalties
computed from the date the taxes were last payable without interest or penalty. Interest on any tax set forth in a
corrected or supplemental tax bill again begins to accrue 60 days after the date the corrected or supplemental tax
bill is issued at the rate of 1.25% per month or fraction of a month. Taxes levied in a corrected or supplemental
tax bill must be returned as delinquent on the March 1 in the year immediately succeeding the year in which the
corrected or supplemental tax bill is issued.
(6) If the assessor of the local tax collecting unit believes that personal property for which a statement claiming
an exemption is timely and properly filed under subsection (2) is not eligible personal property, the assessor may
deny that claim for exemption by notifying the person that filed the statement in writing of the reason for the
denial and advising the person that the denial may be appealed to the board of review under section 30 during
that tax year.
(7) The assessor may deny a claim for exemption granted under this section pursuant to a claim of exemption
filed under subsection (2)(a) or (b) for the current year and for the 3 immediately preceding calendar years. If the
assessor denies a claim for exemption under this subsection, the assessor shall remove the exemption of that
personal property and, if the tax roll is in the local tax collecting unit’s possession, amend the tax roll to reflect
the denial and the local treasurer shall within 30 days of the date of the denial issue a corrected tax bill for any
additional taxes with interest at the rate of 1.25% per month or fraction of a month and penalties computed from
the date the taxes were last payable without interest or penalty. If the tax roll is in the county treasurer’s
possession, the tax roll must be amended to reflect the denial and the county treasurer shall within 30 days of the
date of the denial prepare and submit a supplemental tax bill for any additional taxes, together with interest at
the rate of 1.25% per month or fraction of a month and penalties computed from the date the taxes were last
payable without interest or penalty. Interest on any tax set forth in a corrected or supplemental tax bill again
begins to accrue 60 days after the date the corrected or supplemental tax bill is issued at the rate of 1.25% per
month or fraction of a month. Taxes levied in a corrected or supplemental tax bill must be returned as delinquent
on the March 1 in the year immediately succeeding the year in which the corrected or supplemental tax bill is
issued.
(8) If a person fraudulently claims an exemption for personal property under this section, that person is subject
to the penalties provided for in section 21(2).
(9) As used in this section:
(a) “Commercial personal property” means personal property that is classified as commercial personal property
under section 34c or would be classified as commercial personal property under section 34c if not exempt from the
collection of taxes under this act under this section or section 9m or 9n.
(b) “Control”, “controlled by”, and “under common control with” mean the possession of the power to direct or
cause the direction of the management and policies of a related entity, directly or indirectly, whether derived from
a management position, official office, or corporate office held by an individual; by an ownership interest,
beneficial interest, or equitable interest; or by contractual agreement or other similar arrangement. There is a
rebuttable presumption that control exists if any person, directly or indirectly, owns, controls, or holds the power
to vote, directly or by proxy, 10% or more of the ownership interest of any other person or has contributed more
than 10% of the capital of the other person. Indirect ownership includes ownership through attribution or through
1 or more intermediary entities.
(c) “Eligible personal property” means property that meets all of the following conditions:
(i) Is industrial personal property or commercial personal property.
(ii) The combined true cash value of all industrial personal property and commercial personal property in that
local tax collecting unit owned by, leased to, or in the possession of the person claiming an exemption under this
section or a related entity on December 31 of the immediately preceding year is 1 of the following:
(A) Less than $80,000.00. 4
(B) Equal to or greater than $80,000.00 and less than $180,000.00.
(iii) Is not leased to or used by a person that previously owned the property or a person that, directly or
indirectly, controls, is controlled by, or is under common control with the person that previously owned the
property.
(d) “Industrial personal property” means personal property that is classified as industrial personal property
under section 34c or would be classified as industrial personal property under section 34c if not exempt from the
collection of taxes under this act under this section or section 9m or 9n.
(e) “Person” means an individual, partnership, corporation, association, limited liability company, or any other
legal entity.
(f) “Related entity” means a person that, directly or indirectly, controls, is controlled by, or is under common
control with the person claiming an exemption under this section.
Sec. 19. (1) A supervisor or other assessing officer, as soon as possible after entering office or as required under
the provisions of any charter that makes special provisions for the assessment of property, shall ascertain the
taxable property in the assessing district, the person to whom it should be assessed, and that person’s residence.
(2) Except as otherwise provided in section 9m, 9n, or 9o(3), the supervisor or other assessing officer shall
require any person whom the supervisor or other assessing officer believes has possession of personal property to
make a statement of all the personal property of that person whether owned by that person or held for the use of
another to be completed and delivered to the supervisor or assessor by February 20 of each year, or, if February 20
of a year is a Saturday, Sunday, or legal holiday, the next day that is not a Saturday, Sunday, or legal holiday of
that year. For purposes of a statement delivered by the United States Postal Service, the delivery is timely if the
postmark date is on or before the delivery deadline prescribed in this subsection. If the statement is not timely
delivered to the supervisor or other assessing officer, a late submission may be filed directly with the March board
of review before its final adjournment by submitting the statement prescribed in this subsection. The board of
review shall not accept a filing after adjournment of its March meeting. An appeal of a denial by the March board
of review may be made by filing a petition with the Michigan tax tribunal within 35 days of the denial notice. A
notice the supervisor or other assessing officer provides regarding the statement required under this subsection
must also do all of the following:
(a) Notify the person to whom such notice is given of the exemptions available under sections 9m, 9n, and 9o.
(b) Explain where information about those exemptions, the forms and requirements for claiming those
exemptions, and the forms for the statement otherwise required under this section are available.
(c) Be sent or delivered by not later than January 10 of each year.
(3) If a supervisor, an assessing officer, a county tax or equalization department provided for in section 34, or
the state tax commission considers it necessary to require from any person a statement of real property assessable
to that person, it shall notify the person, and that person shall submit the statement.
(4) A local tax collecting unit may provide for the electronic filing of the statement required under
subsection (2) or (3).
(5) A statement under subsection (2) or (3) must be in a form prescribed by the state tax commission. If a local
tax collecting unit has provided for electronic filing of the statement under subsection (4), the filing format must
be as prescribed by the state tax commission. The state tax commission shall not prescribe more than 1 format
for electronically filing a statement under subsection (2) or more than 1 format for electronically filing a statement
under subsection (3).
(6) A statement under subsection (2) or (3) must be signed manually, by facsimile, or electronically. A
supervisor or assessor shall not require that a statement required under subsection (2) or (3) be filed by
February 20 of each year.
(7) A supervisor or assessor shall not accept a statement under subsection (2) or (3) as final or sufficient if that
statement is not in the proper form or does not contain a manual, facsimile, or electronic signature. A supervisor
or assessor shall preserve a statement that is not in the proper form or is not signed as in other cases, and that
statement may be used to make the assessment and as evidence in any proceeding regarding the assessment of
the person furnishing that statement.
(8) An electronic or facsimile signature for a statement required under this section, a statement required under
section 9o(2)(a) or (b), or a combined document required under section 9m or 9n or under section 7 of the state
essential services assessment act, 2014 PA 92, MCL 211.1057, must be accepted by a local tax collecting unit.
(9) The department of treasury’s use of a statement, or information on a statement, provided under this
subsection is subject to section 28(1)(f) of 1941 PA 122, MCL 205.28. 5
Sec. 30. (1) Except as otherwise provided in subsection (2), the board of review shall meet on the second Monday
in March.
(2) The governing body of the city or township may authorize, by adoption of an ordinance or resolution,
alternative starting dates in March when the board of review shall initially meet, which alternative starting dates
must be the Tuesday or Wednesday following the second Monday of March.
(3) The first meeting of the board of review must start not earlier than 9 a.m. and not later than 3 p.m. and
last for at least 6 hours. The board of review shall also meet for at least 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 must be afforded an opportunity to be heard by the board of review. The board of
review shall schedule a final meeting after the board of review makes a change in the assessed value or tentative
taxable value of property, adds property to the assessment roll, or exempts personal property under section 9m,
9n, or 9o and removes it from the assessment roll. The board of review 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.
(4) 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 that
person’s agent, and if sufficient cause is shown, the board of review shall correct the assessed value or tentative
taxable value of the property in a manner that will make the valuation of the property relatively just and proper
under this act. For the appeal of a denial of a claim of exemption for personal property under section 9m, 9n, or
9o, if an exemption is approved, the board of review shall remove the personal property from the assessment roll.
The board of review may examine under 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 an
appearance, protest, and papers in support of the protest by letter, and the nonresident taxpayer’s personal
appearance is not required. The board of review, on 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 if the person who is
assessed for the altered valuation or for the omitted property is promptly notified and granted an opportunity to
file objections to the change at the meeting or at a subsequent meeting. An objection to a change in assessed value
or tentative taxable value or to the addition of property to the tax roll must 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 the person’s property or for the exemption of that person’s personal property
under section 9m, 9n, or 9o must 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 must 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.
(5) If an exemption for personal property under section 9m, 9n, or 9o 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 must be corrected. If the board of review does not approve an exemption under section 9m, 9n, or 9o, the
person claiming the exemption for that personal property may appeal that decision in writing to the Michigan tax
tribunal. A correction under this subsection that approves an exemption under section 9o may be made for the
year in which the appeal was filed and the immediately preceding 3 tax years. A correction under this subsection
that approves an exemption under section 9m or 9n may be made only for the year in which the appeal was filed.
(6) After the board of review completes the review of the assessment roll, a majority of the board of review
shall indorse the roll and sign a statement to the effect that the roll is the assessment roll for the year in which it
has been prepared and approved by the board of review.
(7) The appropriate assessing officer shall deliver the completed assessment roll 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.
(8) The governing body of the township or city may authorize, by adoption of an ordinance or resolution, a
resident taxpayer to file a protest before the board of review by letter without a personal appearance by the
taxpayer or the taxpayer’s 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.
Enacting section 1. This amendatory act takes effect December 31, 2023.
Enacting section 2. This amendatory act does not take effect unless all of the following bills of the
102nd Legislature are enacted into law:
(a) House Bill No. 4553.
(b) House Bill No. 4554. 6
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Approved
Governor
Compiler's note: House Bill No. 4553, referred to in enacting section 2, was filed with the Secretary of State October
24, 2023, and became 2023 PA 174, Imd. Eff. Oct. 24, 2023.
House Bill No. 4554, also referred to in enacting section 2, was filed with the Secretary of State October 24, 2023, and
became 2023 PA 175, Imd. Eff. Oct. 24, 2023.
Secretary of the Senate