Michigan MCAO Certification cheat sheet

The General Property Tax Act (Public Act 206 of 1893, MCL 211.1 et seq.) is the statutory base for assessment, equalization, and collection in Michigan.

Assessors are certified by the State Tax Commission (STC) at levels I, II, III, and IV; local assessing district requirements scale with parcel count and complexity.

The STC issues the Assessor's Manual and bulletins; published STC bulletins carry the force of directive guidance for assessing officers.

Assessment date is December 31 (tax day) preceding the tax year; status and value are fixed as of that date (MCL 211.2).

Assessments are 50% of true cash value (state equalized value basis); taxable value is capped separately under Proposal A.

Board of Review must meet annually beginning the Tuesday after the first Monday in March; the March board corrects the roll and hears valuation appeals.

July and December Boards of Review handle clerical errors, mutual mistakes of fact, and principal residence exemption claims (MCL 211.53b).

Assessor must deliver the completed assessment roll to the board of review; the roll is the legal basis for the tax roll prepared by the treasurer.

Six statutory real property classes: agricultural, commercial, industrial, residential, developmental, and timber-cutover (MCL 211.34c).

Classification is determined by the assessor and reviewed by the county equalization department; the STC resolves disputes.

Highest and best use governs classification, not current use; a property is classified by its predominant use.

Principal Residence Exemption (PRE) exempts a portion of school operating millage (currently 18 mills) for an owner-occupied home; Form 2368 is filed with the assessor.

Qualified agricultural property (QAP) receives an 18-mill school operating exemption under MCL 211.7dd; recapture applies if converted to non-agricultural use.

Charitable, religious, educational, and governmental property exemptions appear in MCL 211.7 through 211.7ww; each requires statutory qualification.

Industrial facilities and commercial rehabilitation exemptions are granted by local units through specific statutory acts, not by the assessor's discretion.

Taxable value is uncapped and reverts to SEV on a transfer of ownership; certain transfers (e.g., between spouses, certain trusts) are exempt under MCL 211.27a.

True cash value is the usual selling price at the assessment date in an arm's-length transaction (MCL 211.27).

Cost approach: replacement cost new minus physical deterioration, functional obsolescence, and external obsolescence, plus land value.

Sales comparison approach requires verification, adjustment for time, location, and physical differences, and exclusion of non-arm's-length sales.

Income approach uses net operating income divided by a market-derived capitalization rate; gross rent multipliers are a shortcut when supported.

Mass appraisal applies standardized models to groups of properties; CAMA systems compute values from cost tables, neighborhood modifiers, and land tables.

Sales ratio studies measure assessment performance: median ratio, coefficient of dispersion (COD), and price-related differential (PRD).

Michigan target COD is generally 15 or less for residential; PRD should fall between 0.98 and 1.03.

Highest and best use is the reasonably probable, legally permissible, physically possible, financially feasible use that yields the highest value.

County equalization adjusts the aggregate assessment to 50% of the county's true cash value; the State Equalization Report is issued after county studies.

Equalization factor = (50% of true cash value of the class) divided by the total assessed value of the class in the unit.

County equalization must be completed by the fourth Monday in May; the STC issues the state equalization report by the first Monday in June.

A sales study uses verified arm's-length sales from the 12-month period preceding the assessment date, typically October 1 through September 30.

Median ratio indicates the overall level of assessment; COD indicates uniformity; PRD detects vertical inequity between high- and low-value properties.

A COD above the STC threshold triggers a value review; persistent failure can result in a county or state multiplier.

Sales must be screened for family transfers, foreclosure sales, and non-market financing before inclusion in the study.

State equalized value (SEV) equals the county equalized value after state equalization; taxable value may not exceed SEV.

The assessment roll must be completed and delivered to the board of review before its March meeting; it lists each parcel, owner, class, SEV, and taxable value.

The board of review has authority to correct clerical errors, add omitted property, and adjust valuations on appeal.

A taxpayer may appeal in person, by letter, or by agent; a written protest is required to preserve the right to appeal to the Michigan Tax Tribunal.

Petitions to the March Board of Review must be filed by the close of the board's session; late petitions generally cannot be heard.

The board must provide written notice of its decision (Form L-4035 or equivalent) with the right to appeal to the Tax Tribunal within 35 days.

The July and December boards of review may correct mutual mistakes of fact and clerical errors under MCL 211.53b.

The tax roll is prepared by the treasurer from the assessment roll and must be delivered by the first Monday in December for the winter tax bill.

Property tax bills are issued July 1 (summer) and December 1 (winter); summer taxes are due September 14, winter taxes February 14.

Taxable value = (prior taxable value - losses) x (1 + inflation rate) + additions - losses; the inflation rate is capped at 5% (MCL 211.27a).

Property tax = taxable value x total millage rate divided by 1,000.

Millage is expressed in mills; one mill equals $1 of tax per $1,000 of taxable value.

Headlee Amendment limits total millage to the 1978 level without voter approval; the Headlee rollback reduces rates when assessments rise faster than inflation.

Proposal A (1994) shifted school operating funding to the state and established the taxable value cap and 6-mill state education tax.

Voted millage requires approval by a majority of electors; some millage (e.g., certain public safety) requires a supermajority or specific statutory authorization.

Delinquent taxes are returned to the county treasurer; the county may sell tax liens at the annual tax sale and eventually foreclose.

A millage reduction fraction is computed annually by the county and applied to the prior year's levy to determine the maximum authorized rate.

Assessors must comply with the Michigan Assessors Association code of ethics and the STC certification requirements.

Confidential taxpayer information must be protected; assessor records are generally public but specific data (e.g., income reports) may be exempt.

Assessors must avoid conflicts of interest and may not appraise property for private gain when it conflicts with official duties.

Records retention follows the Michigan Records Management Act and General Schedule; assessment records are retained per the approved schedule.

Mass appraisal documentation should include valuation models, sales studies, and supporting data to withstand appeal and audit.

Office management includes parcel maintenance, CAMA data quality control, and timely processing of transfers and exemptions.

Continuing education is required to maintain STC certification; hours and content are set by the State Tax Commission.

Professional conduct requires impartiality, transparency in appeal procedures, and timely response to taxpayer inquiries.