Property tax; appeals; provision relating to requirement to pay

tax before appeal; eliminate.

PROPERTY TAX: Appeals

A bill to amend 1941 PA 122, entitled

"An act to establish a revenue division of the department of

treasury; to prescribe its powers and duties as the revenue col-

lection agency of the state; to prescribe certain powers and

duties of the state treasurer; to regulate the importation,

stamping, and disposition of certain tobacco products; to create

the position and to define the powers and duties of the state

commissioner of revenue; to provide for the transfer of powers

and duties now vested in certain other state boards, commissions,

departments and offices; to prescribe certain duties of and

require certain reports from the department of treasury; to pro-

vide procedures for the payment, administration, audit, assess-

ment, levy of interests or penalties on, and appeals of taxes and

tax liability; to prescribe its powers and duties if an agreement

to act as agent for a city to administer, collect, and enforce

the city income tax act on behalf of a city is entered into with

any city; to provide an appropriation; to abolish the state board

of tax administration; to prescribe penalties and provide reme-

dies; and to declare the effect of this act,"

by amending section 22 (MCL 205.22), as amended by 1993 PA 13.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 22. (1) A taxpayer aggrieved by an assessment,

2 decision, or order of the department may appeal the contested

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1 portion of the assessment, decision, or order to the tax tribunal

2 within 35 days, or to the court of claims within 90 days after

3 the assessment, decision, or order. The uncontested portion of

4 an assessment, order, or decision shall be paid as a prerequisite

5 to appeal. However, an action shall be commenced in the court of

6 claims within 6 months after payment of the tax or an adverse

7 determination of the taxpayer's claim for refund, whichever is

8 later, if the payment of the tax or adverse determination of the

9 claim for refund occurred under the single business tax act, Act

10 No. 228 of the Public Acts of 1975, being sections 208.1 to

11 208.145 of the Michigan Compiled Laws 1975 PA 228, MCL 208.1 TO

12 208.145, and before May 1, 1986.

13 (2) An appeal under this section shall be perfected as pro-

14 vided under the tax tribunal act, Act No. 186 of the Public Acts

15 of 1973, as amended, being sections 205.701 to 205.779 of the

16 Michigan Compiled Laws 1973 PA 186, MCL 205.701 TO 205.779, and

17 rules promulgated under that act for the tax tribunal, or chapter

18 64 of the revised judicature act of 1961, Act No. 236 of the

19 Public Acts of 1961, as amended, being sections 600.6401 to

20 600.6475 of the Michigan Compiled Laws 1961 PA 236, MCL 600.6401

21 TO 600.6475, and rules adopted under that chapter for the court

22 of claims. In an appeal to the court of claims, the appellant

23 shall first pay the tax, including any applicable penalties and

24 interest, under protest and claim a refund as part of the

25 appeal.

26 (3) A taxpayer or the department may take an appeal by right

27 from a decision of the tax tribunal or the court of claims to the

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1 court of appeals. The appeal shall be taken on the record made

2 before the tax tribunal or the court of claims. The taxpayer or

3 department may take further appeal to the supreme court in

4 accordance with the court rules provided for appeals to the

5 supreme court.

6 (4) The assessment, decision, or order of the department, if

7 not appealed in accordance with this section, is final and is not

8 reviewable in any court by mandamus, appeal, or other method of

9 direct or collateral attack.

10 (5) An assessment is final, conclusive, and not subject to

11 further challenge after 90 days after the issuance of the assess-

12 ment, decision, or order of the department, and a person is not

13 entitled to a refund of any tax, interest, or penalty paid pursu-

14 ant to an assessment unless the aggrieved person has appealed the

15 assessment in the manner provided by this section.

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