Since the inception of the Michigan Business Tax Act and the Personal Property Tax Credit, a property tax classification has become increasingly important. Only tangible personal property located on property classified as "industrial" will qualify for the MBT Personal Property Tax Credit as well as other exemptions from the tax. Assessors have been reluctant to correct errors or to change a parcel classification to "industrial". Consequently taxpayers have filed appeals to the State Tax Commission. Current law provides that a property tax classification determination from the State Tax Commission is final.
Legislation introduced in the Michigan Senate would strike to prohibition of appeal from the State Tax Commission and allow an appeal to the Michigan Tax Tribunal.
(6) An owner of a property interest in any assessable property who disputes the classification of that parcel shall notify the assessor and may protest the assigned classification to the March board of review. An owner of a property interest or assessor may appeal the decision of the March board of review by filing a petition with the state tax commission not later than June 30 in that tax year. The state tax commission shall arbitrate the petition based on the written petition and the written recommendations of the assessor and the state tax commission staff.
An appeal may not be taken from the decision of the state tax commission regarding classification complaint petitions and the state tax commission's determination is final and binding for the year of the petition. An owner of a property interest or assessor may appeal the state tax commission's order regarding a classification dispute to the Michigan Tax Tribunal.