Kelli Sobel

Kelli Sobel has served as the Executive Secretary for the State Tax Commission since 2005.  She has been employed with the State of Michigan in various other roles for over 23 years.  Kelli is certified as a Level 3 assessor and earned her Masters in Public Administration from Michigan State University.

Monday

April 21, 2008

What is a 14-Point Review?

Many local units are aware that the State Tax Commission, or STC, conducts “14-Point Reviews,” but what exactly does that mean?  Since 2002, the STC has used the 14-Point Review as a tool to evaluate local unit assessing practices.  It is designed to be a review of the local unit’s practices and not a review of the assessor.  Although a 14-Point Review now measures 25 different items—it will probably always be known as the “14-Point Review.”

The review considers several items:  It first examines a local unit’s compliance with statutorily required due dates, including Board of Review (BoR) dates and BoR documentation.  The review also determines whether the local unit is maintaining appropriate assessment records.  Most local units that fail a review are not meeting this requirement, particularly in the area of land value determinations and ECF (economic condition factor) determinations.  A 14-Point Review also questions whether a local unit is providing appropriate access to public records.  Finally, a good portion of the review examines a local unit’s records cards and assessment roll, to determine if they are being properly maintained, if they contain all the required information, if they match the value on the assessment roll, and whether the unit is meeting requirements to uncap a property, add omitted property, and not follow sales.  (Following sales is an illegal practice where an assessor treats recently sold parcels differently when establishing assessments than similar parcels which have not recently sold.)  In recent years, the review has been expanded to include a field review of property record cards, which can be an important indicator of the “health” of assessment administration practices. 

The issues covered by a 14-Point Review, in conjunction with a document produced by the State Assessors Board entitled “Supervising Preparation of the Assessment Roll” provide an excellent road map for good assessing practices. 

Kelli Sobel can be contacted at 517-335-3429 or via email at Sobelk2@michigan.gov.

Check back tomorrow to hear Kelli’s thoughts on how units are “lucky” enough to be selected for a 14-Point Review.

Tuesday

April 22, 2008

How are units selected for the 14-Point Review?

Upon being selected for a 14-Point Review, local officials may wonder how or why their unit was chosen.  Local units can be selected in a number of ways. 

The State Tax Commission (STC) randomly selects up to 80 units per calendar year.  The STC spreads the selection geographically around the state and there is no “required” number, per county.  Since 14-Point Reviews started in 2002, approximately 1/3 of Michigan’s local units of government have been reviewed (as of 12-31-07).

The 14-Point Reviews can also be ordered by the STC.  The Commission often uses the 14-Point Review as a tool to evaluate complaints received about a local unit’s assessing practices. 

A unit can ask that it be reviewed.  This can occur when local officials are concerned that problems exist in the current system.  Reviews can also be requested when a new assessor is taking over, and local officials want to benchmark past and current practices.

Finally, reviews are required whenever the STC assumes jurisdiction of the assessment roll.  This ensures the roll is accurate and up-to-date when it is to be returned to the unit.  In any case, once a 14-Point Review has been conducted, a local unit is taken out of the random selection pool for a five-year period, unless follow-up is necessary.

Kelli Sobel can be contacted at 517-335-3429 or via email at Sobelk2@michigan.gov.

Check back tomorrow to here Kelli’s thoughts on what happens when a local unit fails a 14-Point Review.

Wednesday

April 23, 2008

What happens if we fail the review?

Since 14-Point Reviews began in 2002, the “failure rate” has been between 30 and 35 percent.  A unit is deemed “non-compliant” if it scores less than 85 percent on the review.  A unit is considered “substantially non-compliant” if it scores less than 75 percent.  Any unit that fails must undergo a follow-up review. 

In 2005, the State Tax Commission (STC) adopted a new policy regarding failed reviews.  All units that fail a 14-Point Review, regardless of the level of non-compliance, must submit a plan to correct deficiencies.  This plan is reviewed by my office, which either accepts or denies the plan, and confirms a date for the follow-up review. 

Units that are substantially non-compliant must meet with staff in Lansing to review their plan and determine when the follow-up review will be conducted.  If a unit fails the follow-up review, the assessor and Township Supervisor or City Manager are required to appear before the STC to discuss the review and deficiencies.  In many cases, the STC assumes jurisdiction of the unit’s assessment roll, which can be a costly process for the unit.

Kelli Sobel can be contacted at 517-335-3429 or via email at Sobelk2@michigan.gov.

Check back tomorrow to hear from David Lee, Executive Secretary for the State Assessors Board, who will discuss what the board is doing to help improve assessing practices.

Thursday

April 24, 2008

For David Lee's post on what the board is doing to help improve assessing practices please click here.

Friday

April 25, 2008

What does the future hold for the 14-Point Review Process?

In 2007, the State Tax Commission (STC) formed a committee to consider improvements in the 14-Point Review process in three areas:  format, follow-up reviews, and selection of units for review.  The committee’s recommendations to revise the format and conduct a three-pronged pilot program were accepted by the STC at its December 20, 2007 meeting.  The pilot program consists of the following:

• First, local units in six counties will be required to submit a statement, certified by the assessor and supervisor, that they are maintaining certain documents.  Those documents, identified by the committee, are essential to proper assessing.

• Second, the commission will select three of the six counties that submitted certification statements and ask that field staff conduct a “county-wide” review.  During this review, staff will meet with all units within the county and conduct a mini review of three major components; land values and their calculations, ECF’s and their calculations, and the database to determine if the appraisal record cards are up to date, and an office review to check for overrides. 

• Finally, funding has been identified to pilot a contract 14-Point Review program in the three remaining counties.  This program, in conjunction with our field staff review, will allow us to conduct more reviews on a more regular schedule.  Using a pilot program approach will allow us to evaluate the ability of contractors to appropriately conduct these reviews.

We hope you have enjoyed learning more about the 14-Point Review process, the State Assessors Board, and the State Tax Commission.

Kelli Sobel can be contacted at 517-335-3429 or via email at Sobelk2@michigan.gov.

Check back on Monday to hear from the House Republicans.