Department of Labor

1
Department of Labor Economic GrowthDavid C.
Hollister, Director

• Michigan Tax Tribunal
• Jack VanCoevering, Chair

The Tax Tribunal Small Claims Division Process
Property Tax Appeals (USE SCROLL BAR AT RIGHT TO
GO TO NEXT SLIDE)
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First, what is the Michigan Tax Tribunal?

• The Michigan Tax Tribunal is a tax court. As a
  tax court, there are certain procedures to follow
  that will lead to a hearing before an
  Administrative Law Judge or a Tribunal Member.
  The Tribunal is not part of the Michigan
  Department of Treasury, nor is it affiliated with
  any local or county government.

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Who are the judges?

• Tribunal Members" are individuals appointed by
  the governor as a Tribunal Judge.
• Administrative Law Judges are classified state
  employees.
• Both Administrative Law Judges and Tribunal
  Members may hear Small Claims appeals. The only
  difference is that a Tribunal Members decision
  is final and not subject to a rehearing.

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What kind of taxes can be appealed at the
Tribunal?

• Valuation (property) This involves your
  propertys true cash value, assessed value and/or
  taxable value.
• This presentation will go through the property
  tax (valuation) appeal process only. Other
  presentations will be available on the Tax
  Tribunal web site in the near future.
• Non-property This is income tax, single business
  tax, sales tax, or any tax that is not property
  related.
• Principal Residence and/or Qualified Agricultural
  Exemption This involves the denial of your
  principal residence or qualified agricultural
  exemption.
• Special Assessment This involves the levy of a
  special assessment on your property. An example
  would be a special assessment levied for street
  paving or sidewalk repairs, etc.

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What you will learn through this presentation.

• Summary of Tribunal Small Claims hearing process
  for property cases.
• Important deadlines and due dates.
• Tribunal address, phone number, fax number web
  site.

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The Tax Tribunal Rules for the Small Claims
Division

• Like other courts, the Tribunals Small Claims
  Division has rules that govern the practice and
  procedure within the Small Claims Division. The
  rules are based on the statutory authority (the
  law) provided to the Tribunal by the Tax Tribunal
  Act (MCL 205.701 et seq). The complete rules and
  Act can be found on the Tribunals web site.

What really happens at the Tax Tribunal? Scroll
to the next screen and lets find out!
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Requirements to start a property (valuation)
appeal with the Tribunal.

• March Board of Review If you are requesting to
  appeal your Taxable Value (TV), State Equalized
  Value (SEV) and/or True Cash Value (TCV) you MUST
  first protest the assessment at the March Board
  of Review (BOR) at your local unit of government
  (city or township). If you do not protest the
  current year at the March BOR, the Tribunal may
  not have jurisdiction over your appeal. Contact
  your local unit of government for information
  concerning how to protest at your local March
  Board of Review. The Tribunal is not part of the
  Board of Review process.

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Requirements, cont.

• When you are notified of a denial of your protest
  at the local BOR and you wish to further pursue
  your protest, the next step will be to appeal at
  the Tax Tribunal. The Tribunal is not connected
  in any way with the local boards of review that
  occur throughout the state. The Tribunal will
  not know about your values or the reason for the
  denial of your protest at the BOR.

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How to start an appeal with the Tax Tribunal

• You may start an appeal with the Tax Tribunal by
  one of the following methods
• Write a letter to the Tribunal, and we will send
  you a Petition form, OR
• Go to the Tribunals web site and use our
  fillable form. Fillable form means you can
  complete the fields on the web form and then
  print the form out, or you may print the blank
  form out and then complete it. Whichever you
  choose, you must mail the completed form to the
  Tribunal.
• The appeal letter or the fillable petition form
  starts the appeal process with the Tribunal. DO
  NOT do both a letter of appeal and a fillable
  petition form as a duplication may occur and can
  delay your appeal process.

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Property Small Claims (SC)

• In your letter indicate parcel ID number, the
  local unit of government and the type of appeal
  you wish to process. If you are using a
  fillable form, please complete all fields on the
  form. Be careful to read all instructions given
  on the form. Mail your letter or your completed
  fillable form to the Tribunal.
• The letter of appeal or the completed fillable
  form must be postmarked on or before June 30th of
  the tax year at issue. If June 30th falls on a
  holiday or weekend, the next business day would
  be the final date to file the appeal letter.
• NOTE No faxed letters or forms can be accepted.

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Processing the Property SC appeal letter

• The Tribunal will enter the appeal letter on its
  automated system and assign a docket number. You
  can search the Tribunals web site at Docket
  Card Look-Up to see if your appeal letter was
  received, by using the name search to locate the
  docket number that has been assigned. The docket
  number assigned will stay with your appeal
  throughout the entire process.
• After your appeal letter has been reviewed and it
  has been determined that the Tribunal has
  jurisdiction, the Tribunal will send you a
  petition form to complete. The petition form
  must be completed and returned by the due date
  indicated on the form. If the petition form is
  NOT returned by the due date or is received after
  the due date, your appeal may be dismissed!

SC Property appeal letter continued next slide
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Processing the Property SC appeal letter continued

• The Tribunal will send a cover letter with
  line-by-line instructions with the petition form
  to assist you in the completion of your petition
  form. If you need assistance calculating the
  appropriate filing fee, please use the fee
  calculator on the Tribunals web site. You may
  always call the Tribunal if you have questions
  concerning the completion of the form. Although
  the Tribunal staff is prohibited by law from
  giving technical assistance regarding the actual
  appeal content, staff can assist you in
  understanding the process. Please read ALL the
  instructions thoroughly regarding the completion
  of the petition form.
• When the Tribunal receives your completed
  petition form, the Tribunal will use the U.S.
  Postal Service postmark on the envelope to verify
  if it was received by the due date. Remember, if
  the Tribunal does not receive your completed
  petition form by the due date on the form, your
  appeal may dismissed.

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Processing a property fillable formno appeal
letter necessary

• Complete the fillable form from the Tribunals
  web site. You may print the blank form off the
  web site and then complete it or complete the
  form while it is still on the web and then print
  it out and mail to the Tribunal on or before June
  30 of the tax year at issue. The Tribunal will
  use the U.S. postmark to determined that the
  form was mailed on June 30. If June 30th falls on
  a holiday or weekend, the next business day would
  be the final date to file the completed form. For
  assistance in calculating the appropriate filing
  fee for your appeal or for assistance in
  completing the fillable form, see the Tribunals
  web sites fee calculator and line-by-line
  instructions for completing the fillable form.

SC Property fillable form continued next slide
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Processing a property fillable form continued

• You can always call the Tribunal if you should
  have questions concerning the completion of the
  form. Although the Tribunal staff is prohibited
  by law from giving technical assistance regarding
  the actual appeal content, staff can assist you
  in understanding the process as a whole.
• The Tribunal will send you a Notice of Docket
  letter after receiving the completed fillable
  form. This notice will tell you what the docket
  number is for your appeal. This Notice of
  Docket letter will be your confirmation that
  your completed fillable petition form has been
  received. You may also go to the Tribunals web
  site at Docket Card Look-Up to see if your
  completed fillable form has been received.

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Processing the SC Completed Petition Form
(including fillable form)

• The Tribunal will review your completed petition
  form for timeliness, completion, fees, content.
  For assistance in calculating the appropriate
  fee for your appeal, see the Tribunals web site
  fee calculator or refer to the cover letter and
  line-by-line instructions that were included if
  you received your petition form in the mail from
  the Tribunal. Remember to submit the original
  completed form with attachments and a second copy
  of the form with attachments. Keep a third copy
  for your records.
• If the petition form is incomplete or if it is
  not understandable, the Tribunal will issue a
  defect by returning a copy of your petition
  form with a letter explaining what needs to be
  corrected. You will have 21 days to respond to
  the defect notice. If the defect notice is not
  answered within 21 days, the appeal may be
  defaulted.

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DEFAULTS

• When a Petitioner or Respondent does not comply
  with a Tribunal order or rule, they may be placed
  in default. The Tribunal will issue a default
  order and both parties will receive a copy. ONLY
  the party in default must correct the default, by
  filing a motion to set aside the default,
  providing a proof of service that a copy of the
  motion to set aside was sent to the opposing
  party, and paying a 25 motion fee. The fee is
  not required if the property at issue has at
  least a 50 principal residence exemption for the
  year(s) at issue. Defaulting can happen at any
  time during the appeal process.

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Processing the Valuation SC Answer Form

• Once the Tribunal has received the completed
  petition form, the Tribunal sends an answer form
  with a copy of the completed petition form, with
  attachments, to the assessor of the local unit of
  government (Respondent). Respondent must return
  the completed answer form by the due date noted
  on the answer form. If the Respondent fails to
  return the completed answer form by the due date
  noted on the form, Respondent will be placed in
  default. (See previous screen titled Defaults)
• If the answer form is incomplete or if it is not
  understandable, Respondent may by defected. (See
  previous screen titled Defaults)

SC Property appeal answer form continued next
slide
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Processing the SC Answer Form continued

• If the local unit of government is the
  petitioner, then the answer form would be sent to
  the individual or entity responsible for the
  payment of the taxes.
• The Tribunal will review the answer form for
  completion, timeliness, and content.
• The appeal will be ready for the scheduling of a
  Small Claims hearing when the Tribunal has the
  completed petition and answer form.

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OK, now that

• Petitioner has been to the BORand
• Petitioner has written and mailed a letter of
  appeal to the Tribunal OR
• Petitioner has completed the petition form
  (including fillable forms) and mailed it to the
  Tribunal in a timely mannerand
• Respondent has completed the answer form and
  mailed it to the Tribunal in a timely manner, the
  next step is

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Scheduling a Small Claims Hearing

• The Tribunal will schedule a Small Claims hearing
  in the county where the property at issue is
  located or an adjoining county. The hearing is
  NOT scheduled in the county where the Petitioner
  lives if the property at issue is located
  elsewhere. Neither party will be required to
  travel more than 100 miles from where the
  property is located.
• The Small Claims hearing will be approximately 30
  minutes in length.
• A Notice of Hearing will be mailed to the
  parties approximately 30 to 45 days in advance of
  the scheduled hearing date, although on rare
  occasions the Tribunal can schedule as little as
  14 days prior to the hearing date. Please read
  the Notice of Hearing very carefully.

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Notice of Hearing

• The Notice of Hearing contains very important
  information.
• The date, time and address of the hearing.
• How to withdraw your appeal or stipulate
  (settlement agreement).
• Information regarding documentary evidence to be
  submitted (not less than 14 days prior to the
  scheduled hearing date).
• How to request to have your appeal heard on the
  file if Petitioner or Respondent cant attend
  the hearing.
• How to request an adjournment (postponing) of the
  hearing.
• Special accommodations requests (persons with
  disabilities).
• This will be the only notification of the
  scheduled hearing date that the parties will
  receive.

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What happens at the SC hearing?

• The Administrative Law Judge or Tribunal Member
  will verify basic assessment information and
  swear in all parties (and observers) for the
  hearing.
• The petitioner presents its case. The petitioner
  has the burden of proof in establishing the true
  cash value of the property on the assessment
  date. All documentary evidence must have been
  submitted at least 14 days prior to the scheduled
  hearing date.
• The respondent presents its case. The assessor
  has the burden of proof in establishing the ratio
  of average level of assessments in relation to
  true cash value in the assessment district and
  that the equalization factor was uniformly
  applied.

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Conduct at Hearing

• COME PREPARED!!!!!
• Be sure that any documentary evidence has been
  submitted to the Tribunal AND a copy sent to the
  opposing party no less than 14 days prior to the
  hearing.
• Be on time! Dont wait until the day of the
  hearing to find out how to find the hearing site.
  If you are unsure of where the hearing site is,
  call the COUNTY EQUALIZATION DEPARTMENT in the
  county in which the hearing is scheduled. The
  Tribunal does not have specific directions to the
  hearing site.
• Conduct yourself with decorum. Remember, this is
  a hearing before a judge.
• If Petitioner fails to show up at the hearing,
  the appeal can be dismissed.
• If Respondent fails to show up at the hearing,
  the hearing will continue without them.

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Tribunal Decisions
The Administrative Law Judge (ALJ) is required
to submit a proposed Opinion Judgment to the
Tribunal within 60 days after the scheduled
hearing. The Opinion and Judgment is based upon
the applicable laws and evidence and testimony
provided at the hearing. That proposed Opinion
Judgment is reviewed by their supervising
Tribunal Member. With the approval of their
supervising Tribunal Member, the Opinion
Judgment is entered on the Tribunals automated
system and mailed to all parties and any other
parties having a financial interest in the
outcome of the hearing, i.e. school districts,
county equalization, etc. If either party
disagrees with an Opinion Judgment issued by an
ALJ, they can request a rehearing.
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SC Rehearings

• Sometimes a party may believe that the Opinion
  and Judgment is inaccurate. Either party may
  request a rehearing or reconsideration of an
  Opinion and Judgment issued by an Administrative
  Law Judge, but a decision by a Tribunal Member is
  FINAL. To request a rehearing
• Submit a written request to the Tribunal.
• The request must be filed within 20 days of the
  entry of the Opinion Judgment.
• A copy of the request MUST be served on the
  opposing party and proof of that service must
  also be filed with your rehearing request to the
  Tribunal.
• A 25 filing fee is required with the rehearing
  request unless the property at issue has at least
  a 50 principal residence exemption.

SC Rehearings continued next slide
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SC Rehearings continued

• The written request must show GOOD CAUSE as to
  why the rehearing should be held. Good cause
  means any of the following
• Error in law.
• Mistake of fact.
• Fraud.
• Any reason the Tribunal deems sufficient.
• NEW evidence is NOT good cause for a rehearing!!
• Not understanding that documentation was needed
  at the hearing is NOT good cause for a rehearing.
  
• Be clear in your reasons for requesting a
  rehearing.

SC Rehearings continued next slide
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Small Claims Rehearings continued

• The opposing party has 14 days after service of
  the request to respond to the rehearing request.
• If your request is granted, you will be scheduled
  for a hearing before a Tribunal Member at a date,
  time and place established by the Tribunal.
  Generally, these hearings are about 45 minutes to
  one hour in length.
• You may submit additional documentation AFTER the
  rehearing request has been granted. The Tribunal
  file has all the previously submitted
  documentation and it does not need to be
  re-submitted.

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Stipulations ( a settlement agreement)

• A stipulation is an agreement between parties
  resolving a case or addressing specific facts,
  filed for the Tribunals approval.
• All parties or their authorized representatives
  must sign and date the stipulation.
• The ORIGINAL stipulation with ORIGINAL signatures
  must be filed with the Tribunal. You must submit
  the ENTIRE AGREEMENT.

Stipulations continued next slide
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Stipulations continued

• No faxed stipulations will be processed!
• If there are ANY side agreements, they MUST be
  included with the stipulation.
• A stipulation is treated as a motion and requires
  a motion fee of 25.00 unless the property has a
  principal residence exemption of at least 50 for
  the tax years at issue. If the appeal concerns a
  principal residence exemption DENIAL, a fee is
  required.

Stipulations continued next slide
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Stipulations continued

• If any item on the stipulation is not complete or
  needs further explanation, the stipulation may be
  defected or denied.
• Written notification is required from the
  petitioner to inform the Tribunal that a
  stipulation is forthcoming. A phone call is
  insufficient, but the written notification may be
  faxed.
• Tribunal staff need to inform the Administrative
  Law Judge that the case has been settled if the
  parties notify the Tribunal less than 10 days
  prior to the scheduled hearing.

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Miscellaneous Information

• The following few screens have information that
  may be useful to you as you are going through the
  appeal process.

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REMEMBER!!!

• Taxable Value is a mathematical calculation,
  therefore, it CANNOT be stipulated to unless
  there are additions or losses involving the
  property!! An example of an addition would be a
  garage that has been built on property that never
  had a garage before, while a loss would be a
  garage that burned downed. You must provide
  justification for taxable value changes if you
  are going outside the statutory calculation.

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REMEMBER
CAPPED VALUE FORMULA (Taxable Value) (PRIOR
TAXABLE VALUE MINUS ½ TRUE CASH VALUE OF
LOSSES) MULTIPLIED BY THE LESSER OF 1.05
or ANNUAL INFLATION RATE ½ TRUE CASH VALUE OF
ADDITIONS
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TAXABLE VALUE IS
THE LESSER OF
STATE EQUALIZED VALUE
CAPPED TAXABLE VALUE
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Did you know ? MCL 211.27a (3) Ownership
Changes Transfers of ownership require the
assessor to uncap the taxable value. The
assessor has no choice but to uncap the taxable
value.
AFTER THE MARCH BOARD OF REVIEW AN ASSESSOR is
required to file an Assessor Affidavit (STC
Form L-4054) when a transfer of ownership is
discovered and the taxable value has not been
uncapped.
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REMEMBER!!! The July and December Boards of
Review ONLY meet to correct clerical errors
and/or mutual mistakes, hear appeals regarding
principal residence and poverty exemptions and
agricultural exemptions.
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ECF (Economic Condition Factor) The ECF adjusts
the cost approach to reflect a 50 assessment
ratio for a neighborhood.

• Calculated for neighborhoods that have similar
  market influences.
• Only used in mass appraisal.
• Adjusts the entire neighborhood by the same
  percentage.
• Adjusts the assessment ratio to 50 based upon
  sales in the neighborhood.
• Use of ECF does not mean that individual
  properties are assessed at 50 of market value.
• Does NOT apply to land.

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Deadlines for Appeal

• Tribunal jurisdiction is based on the law.
  Jurisdiction is invoked by the timely and proper
  filing of an appeal letter. If the Tribunal does
  not have jurisdiction, it has no authority to
  hear the appeal. The Tribunal reviews each
  appeal to see if the Tribunal has jurisdiction.
  The following slides are a quick reference on the
  appeal deadlines

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Deadlines for Appeal

• Valuation Appeals to the Tax Tribunal
• AFTER March BOR and on or before June 30 of the
  tax year involved. MCL. 205.735(2) TTR 205
• 30 days AFTER notice of assessment change is
  issued, if the notice was not properly sent prior
  to the March Board of Review for the tax year at
  issue. MCL 205.735(2)
• 30 days AFTER State Tax Commission order is
  issued. MCL 205.735(2)
• 30 days AFTER notice of July or December BOR
  decision revising propertys assessed and/or
  taxable value is issued. MCL 205.735(2)
• 53a Jurisdiction is determined on a case by case
  basis. Such appeals should include information
  about the specific error or mistake. MCL 211.53a
• 35 days AFTER notice of uncapping taxable value
  is received. MCL.211.27(b)
• Contested Tax Bills
• Must be filed within 60 days AFTER mailing of the
  contested tax bill. MCL 205.735

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Important Due Dates
Its important to know various due dates
that are involved in the appeal process. Knowing
these due dates can prevent unnecessary problems,
delays, and difficulties. Here are some of the
due dates that commonly give parties difficulty
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Important Due Dates

• Requests for Rehearings (SC)
• Must be filed with the Tribunal within 20 days
  after entry of the order. Proof of service and
  filing fee (25.00) are necessary unless property
  has a principal residence exemption of 50 or
  more. MCL 205.762
• Small Claims (SC) Appeal Petition Form
• The completed and signed petition form must be
  filed by the due date on the form or the appeal
  will be dismissed (28 days). TTR 320(2)
• SC Appeal Answer Form
• The completed and signed answer form must be
  completed by Respondent and returned to the
  Tribunal by the due date at the bottom of the
  form (28 days). TTR 332
• SC Evidence
• May not be admitted if LESS than 14 days prior to
  a scheduled Small Claims hearing. TTR 342(2)

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Information Resourceshttp//www.michigan.gov/taxt
ribunal

• On the Tribunal Web site
• The Rules of Practice and Procedure
• The Tax Tribunal Act
• FAQs
• Sample and Fillable Forms
• Filing Fee Information
• Docket Card Search by Name and Docket Number
• Related Links

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Michigan Tax Tribunal

• For more information, please contact the
  Tribunals internet address at http//www.michigan
  .gov/taxtribunal OR contact the Tribunal at
• Michigan Tax Tribunal
• PO Box 30232
• Lansing, MI 48909-7732
• PH 517/334-6521
• FX 517/334-6535

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This is the end of Small Claims Property Appeal
Process Presentation