TAXATION AND REVENUE SYSTEMS—MICHIGAN.
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Shares of stock in and evidences of indebtedness of all railroad
companies in the state are taxed annually to the holders or owners
thereof or to the person or corporation to whom same shall be owing,
the shares thereof at 2 per cent upon the par value, and the evi
dences of indebtedness at 1 per cent of the face value or amount.
Steam vessels engaged in carrying passengers, or passengers and
freight, are assessed annually a specific tonnage tax of 20 cents per
net ton on registered tonnage; freight vessels are taxed 10 cents
per net ton. This tax is collected by the state and apportioned
to counties and townships where the port of hail of the vessels is
located.
c. Equalization.—There is no equalization, so called,
between individuals. Excessive assessments and un
dervaluations may, however, be corrected by the board
of review, or by the board of state tax commissioners.
The comity board of supervisors equalizes annually
between townships, wards, or cities in their county,
making such additions and deductions on the total
value of real estate in the several townships as will, in
their judgment, produce relatively an equal and uni
form valuation in the county. The effect of equaliza
tion in this manner is felt entirely in the apportionment
of state and county taxes, as the assessment roll, after
it leaves the hands of the board of review, is not
amended, except by the board of state tax commis
sioners.
The state board of equalization in 1911 and every
consecutive third and fifth year thereafter, equalizes
the valuation of all property in the state, except that
paying specific taxes, by adding to or deducting from
the aggregate valuation of taxable real and personal
property such percentages as will produce relatively
equal and uniform valuations between the several
counties. This forms the basis of the apportionment
of the state tax.
The state board of tax commissioners has powers
analogous to those of boards of equalization. It
has power, upon receipt of a written complaint signed
by a taxpayer residing in the assessing district in
which the property complained of is situate, to order
a public hearing at wdiich the supervisor and the
interested parties are present, and may change indi
vidual assessments, add property omitted, and, when
the assessment of all property in a given district
is complained of, make a general review of the roll.
2. Rate—
The rate for state purposes is determined by the
state board of assessors each year strictly by appor
tionment, an apparent exception being the so-called
mill tax (three-eighths of. 1 mill) on the equalized val
uation of the state for the support of the university.
The legislature makes such appropriations as it sees
fit and directs in a general way the total amount of
money to be raised. The auditor general certifies to
the clerk of each county (the clerk acts as county
auditor) that proportion of the toal amount to be
raised for state purposes which the equalized valua
tion in each county bears to the total equalized
valuation of the state as previously fixed by the state
board of equalization. The county board of super
visors apportions the share of its county among the
townships and cities on the basis of the annual valua
tion as equalized by said board in each, and the super
visor in each township apportions the amount assigned
to the township among the individuals in proportion
to their assessed property. There is thus no universal
‘‘state rate” save in connection with the state assess
ment.
3. Collection—
In general, all taxes, state and local, except those
called “specific” (wdiich still include the tax on rail
roads, etc., under the new law), are collected by the
tovuiship or city treasurers. The taxes due from tax
payers become a debt to the city or tovuiship, and are
secured by a lien on the property, attaching on the 1st
day of December. Taxes are delinquent on the 10th
of January, vdien the collection fee becomes 4 per cent;
but if the treasurer is apprehensive of the loss of any
personal tax, he may proceed to collect it by seizing
the property and bringing suit in December, and in
that case the collection fee is 4 per cent. After the
10th of January the treasurer makes a personal demand
on each taxpayer who is delinquent, and in case pay
ment is not made he collects by seizure and sale. The
respective portions of the state and county are turned
over to the county treasurer, wdio transmits the state’s
portion to the state treasurer.
The tax on railroad and kindred companies under the new law is
a lien upon the real estate of the corporations, and is payable to
the state treasurer on or before the 1st day of April, and if not
paid on or before May 1, involves a penalty of 1 per cent a month
and may be collected by suit. The tax thus collected is paid to
the “primary school interest fund” and is disbursed annually
to the school districts in the state in proportion to the number of
children therein of school age.
The township treasurer as collector is paid by a fee of 1 per cent
which is added to the taxes.
B. POLL TAXES.
There is no state poll tax.
C. THE INHERITANCE TAX.
A tax is imposed upon the transfer of any property,
real or personal, of the value of SI00 or over, or of any
interest therein or income therefrom, in trust or other-
v r ise, to persons or corporations not exempt by law
from taxation on real or personal property, in the
folio whig cases:
1. When the transfer is by will or by the intestate laws of the
state, from any person dying seized or possessed of the property
while a resident of this state;
2. When the transfer is by will or intestate laws of the state, of
property within the state, and the decedent was a nonresident of
the state at the time of his death;
3. When the transfer is of property made by a resident or by a
nonresident, when such nonresident’s property is within the state,
by deed, grant, bargain, sale, or gift, made in contemplation of
death or intended to take effect after death.
