SENATE BILL NO. 351 February 23, 1999, Introduced by Senators PETERS, SCHUETTE, SIKKEMA, STEIL, SHUGARS, EMERSON and HAMMERSTROM and referred to the Committee on Economic Development, International Trade and Regulatory Affairs. A bill to allow for the identification of tax delinquent abandoned real property; to permit the accelerated forfeiture of tax delinquent abandoned real property; to require certain proce- dures of and to impose certain duties on certain local governmen- tal units; to provide for the imposition of certain fees; and to provide for the disposition of forfeited tax delinquent abandoned property the title to which is vested in certain local governmen- tal units. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. This act shall be known and may be cited as the 2 "tax delinquent abandoned property identification and accelerated 3 forfeiture act". 4 Sec. 2. As used in this act: 01249'99 * FDD 2 1 (a) "Collecting county" means a county that utilizes this 2 act to collect delinquent taxes on, and to accelerate the 3 forfeiture of, tax delinquent abandoned property. 4 (b) "Delinquent taxes" means real property taxes that have 5 been returned as delinquent under the general property tax act. 6 Delinquent taxes include any interest, penalty, fee, or other 7 cost authorized under the general property tax act. 8 (c) "General property tax act" means the general property 9 tax act, 1893 PA 206, MCL 211.1 to 211.157. 10 (d) "Local tax collecting unit" means a city or township, or 11 a county if the county collects property taxes on behalf of a 12 city or township. 13 (e) "Local unit of government" means a city, village, or 14 township. 15 (f) "Tax delinquent abandoned property" means property that 16 is vacant or dilapidated and open to entrance or trespass, that 17 has been determined to be abandoned under the procedures set 18 forth in section 4, and on which taxes have been returned as 19 delinquent under the general property tax act. 20 Sec. 3. (1) Between January 1 and March 1 in any tax year, 21 a local tax collecting unit may, by resolution approved at a 22 meeting held pursuant to the open meetings act, 1976 PA 267, MCL 23 15.261 to 15.275, elect to have the county in which the local tax 24 collecting unit is located utilize this act to collect delinquent 25 taxes on, and to accelerate the forfeiture of, tax delinquent 26 abandoned property in that tax year and all succeeding tax 27 years. If a local tax collecting unit elects to have the county 01249'99 * 3 1 in which the local tax collecting unit is located utilize this 2 act to collect delinquent taxes on, and to accelerate the forfei- 3 ture of, tax delinquent abandoned property, that county shall 4 utilize this act to collect delinquent taxes on, and to acceler- 5 ate the forfeiture of, tax delinquent abandoned property located 6 in that local tax collecting unit. 7 (2) If a local tax collecting unit does not elect to have 8 the county in which the local tax collecting unit is located uti- 9 lize this act pursuant to subsection (1), between January 1 and 10 March 1 in any tax year, the county in which the local tax col- 11 lecting unit is located may, by resolution approved at a meeting 12 held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 13 to 15.275, elect to utilize this act to collect delinquent taxes 14 on, and to accelerate the forfeiture of, tax delinquent abandoned 15 property located in that local tax collecting unit in that tax 16 year and all succeeding tax years. 17 (3) If a local tax collecting unit does not elect to have 18 the county in which the local tax collecting unit is located uti- 19 lize this act pursuant to subsection (1) and the county in which 20 the local tax collecting unit is located does not elect to uti- 21 lize this act pursuant to subsection (2), the delinquent taxes on 22 the tax delinquent abandoned property shall be collected pursuant 23 to the general property tax act. 24 Sec. 4. (1) Tax delinquent abandoned property is subject to 25 accelerated forfeiture under this act if all of the following 26 procedures are complied with: 01249'99 * 4 1 (a) A representative of the collecting county made a 2 personal inspection of the tax delinquent abandoned property and 3 determined that the tax delinquent abandoned property is 4 abandoned. 5 (b) A notice was posted on the tax delinquent abandoned 6 property at the time of the personal inspection by a representa- 7 tive of the collecting county and a notice was sent by certified 8 mail, return receipt requested, by the collecting county to each 9 owner and person with a legal interest in the tax delinquent 10 abandoned property according to the records of the treasurer of 11 the local tax collecting unit in which the tax delinquent aban- 12 doned property is located. The notice shall include all of the 13 following information: 14 (i) The legal description and street address of the tax 15 delinquent abandoned property. 16 (ii) A statement that the tax delinquent abandoned property 17 is abandoned. 18 (iii) A statement that, due to abandonment, the tax delin- 19 quent abandoned property is subject to accelerated forfeiture for 20 enforcement and collection of delinquent property taxes as pro- 21 vided in this act. 22 (iv) A statement that the tax delinquent abandoned property 23 will be presumed abandoned unless the owner or a person claiming 24 a legal interest responds by May 1 in the year in which the taxes 25 are delinquent with an affidavit filed with or sent by 26 first-class mail to the treasurer of the collecting county 27 stating that the owner or person with a legal interest in the tax 01249'99 * 5 1 delinquent abandoned property is occupying or intends to occupy 2 the tax delinquent abandoned property. 3 (c) The owner or a person claiming a legal interest in the 4 tax delinquent abandoned property has not claimed the tax delin- 5 quent abandoned property is not abandoned by filing the affidavit 6 required by subdivision (b)(iv). 7 (2) If the representative of the collecting county deter- 8 mines during the personal inspection that the tax delinquent 9 abandoned property is occupied by a person with a legal interest 10 in the tax delinquent abandoned property, the representative 11 shall do all of the following: 12 (a) Provide written notice to that occupant that taxes 13 levied on that tax delinquent abandoned property are delinquent, 14 which, if not redeemed, could result in the forfeiture of the tax 15 delinquent abandoned property and eviction. 16 (b) Notify the collecting county that the tax delinquent 17 abandoned property is not abandoned and is not eligible for 18 accelerated forfeiture under this act, but may be eligible for 19 disposition under the tax delinquent residential rental property 20 identification and accelerated forfeiture act or the tax delin- 21 quent homestead property identification and accelerated forfei- 22 ture act. 23 Sec. 5. (1) If the owner or a person claiming a legal 24 interest in the tax delinquent abandoned property has not claimed 25 that the tax delinquent abandoned property is not abandoned by 26 filing the affidavit required by section 4(1)(b)(iv), the 27 collecting county shall conduct, or contract with a private 01249'99 * 6 1 vendor to conduct, a title search for each parcel of tax 2 delinquent abandoned property subject to accelerated forfeiture 3 under this act. 4 (2) The collecting county shall pay the costs of the title 5 search from the title search fee authorized under section 60 of 6 the general property tax act, MCL 211.60. 7 Sec. 6. (1) After conducting the title search required 8 under section 5 and not less than 14 days before conducting a 9 hearing pursuant to section 7, the collecting county, or a pri- 10 vate vendor under contract with the collecting county, shall send 11 notice by certified mail, return receipt requested, to the owner 12 and to all persons with a legal interest in each parcel of tax 13 delinquent abandoned property subject to accelerated forfeiture 14 under this act. If the collecting county or private vendor under 15 contract with the collecting county is unable to ascertain the 16 whereabouts or the post office address of the owner or any person 17 with a legal interest in the tax delinquent abandoned property 18 subject to accelerated forfeiture under this act or, if notice by 19 certified mail is refused, service of the notice shall be made by 20 publication. The notice shall be published for 4 successive 21 weeks, once each week, in a newspaper published and circulated in 22 the collecting county, if there is one. If no newspaper is pub- 23 lished in the collecting county, publication shall be made in a 24 newspaper published and circulated in an adjoining county, and 25 proof of publication, by affidavit of the printer or publisher of 26 the newspaper, shall be filed with the register of deeds in the 27 collecting county. This publication shall be instead of personal 01249'99 * 7 1 service on the person or persons with a legal property interest 2 whose whereabouts cannot be ascertained or who refused service by 3 certified mail. 4 (2) The collecting county or private vendor under contract 5 with the collecting county may utilize the qualified voter file 6 established under section 509o of the Michigan election law, 1954 7 PA 116, MCL 168.509o, to confirm the address of the owner and any 8 person with a legal interest in each parcel of tax delinquent 9 abandoned property subject to accelerated forfeiture under this 10 act. 11 (3) The notice required under subsection (1) shall include, 12 but is not limited to, all of the following: 13 (a) A statement that the tax delinquent abandoned property 14 is subject to accelerated forfeiture because the tax delinquent 15 abandoned property has been determined to be abandoned. 16 (b) Instructions for redemption under this act, including a 17 statement of all delinquent taxes due. 18 (c) The time, date, and location of the hearing authorized 19 under section 7 at which the owner or a person with a legal 20 interest in the tax delinquent abandoned property may object to 21 the accelerated forfeiture. 22 Sec. 7. (1) Not sooner than September 1 in the year in 23 which the taxes become delinquent and not later than September 1 24 in the immediately succeeding year, the collecting county may 25 petition the circuit court for the collecting county to enter a 26 judgment forfeiting the tax delinquent abandoned property to the 27 local unit of government in which the tax delinquent abandoned 01249'99 * 8 1 property is located. A judgment forfeiting the title to tax 2 delinquent abandoned property under this section forfeits title 3 to all parcels of tax delinquent abandoned property set forth on 4 a separate attachment to the complaint and incorporated into the 5 complaint by reference. 6 (2) In a forfeiture action brought under this section, the 7 delinquent property taxes and the notice provided under sections 8 4 and 6 are prima facie evidence in support of a judgment for- 9 feiting the title to the tax delinquent abandoned property to the 10 local unit of government in which the tax delinquent abandoned 11 property is located. 12 (3) The owner and any person with a legal interest in the 13 tax delinquent abandoned property may appear at a forfeiture 14 hearing held pursuant to this section and redeem the tax delin- 15 quent abandoned property as provided under this act or show cause 16 why the tax delinquent abandoned property is not abandoned or why 17 title to the tax delinquent abandoned property should not vest in 18 the local unit of government in which the tax delinquent aban- 19 doned property is located for any of the reasons set forth in 20 section 98 of the general property tax act, MCL 211.98. 21 (4) If the circuit court for the collecting county enters a 22 judgment forfeiting the title to the tax delinquent abandoned 23 property to the local unit of government in which the tax delin- 24 quent abandoned property is located, the circuit court for the 25 collecting county shall issue a tax deed for the tax delinquent 26 abandoned property to the local unit of government. 01249'99 * 9 1 Sec. 8. (1) Not sooner than 90 days after the hearing 2 provided for in section 7, a collecting county may bring a quiet 3 title action in the circuit court for the collecting county. A 4 quiet title action under this section shall determine title for 5 all parcels of tax delinquent abandoned property set forth on a 6 separate attachment to the complaint and incorporated into the 7 complaint by reference. 8 (2) If a collecting county brings a quiet title action in 9 the circuit court for the collecting county pursuant to subsec- 10 tion (1) and the circuit court for the collecting county enters a 11 judgment vesting absolute title to the tax delinquent abandoned 12 property in the local unit of government in which the tax delin- 13 quent abandoned property is located, all prior interests in the 14 tax delinquent abandoned property are canceled. 15 Sec. 9. Tax delinquent abandoned property may be redeemed 16 at any time before a judgment is entered under section 8 by pay- 17 ment to the collecting county of all of the following: 18 (a) All delinquent taxes due. 19 (b) Costs incurred for notice, publication, and title work 20 required under this act. 21 (c) Court costs. 22 Sec. 10. If a collecting county brings a quiet title action 23 in the circuit court for the collecting county pursuant to sec- 24 tion 8 and the circuit court for the collecting county enters a 25 judgment vesting absolute title to the tax delinquent abandoned 26 property in the local unit of government in which the tax 27 delinquent abandoned property is located, the local unit of 01249'99 * 10 1 government may do 1 or more of the following with the tax 2 delinquent abandoned property: 3 (a) Demolish any unsafe structure located on the tax delin- 4 quent abandoned property. 5 (b) Remediate any environmental contamination found on the 6 tax delinquent abandoned property or notify the department of 7 environmental quality or other appropriate organization regarding 8 the existence of environmental contamination on the tax delin- 9 quent abandoned property. 10 (c) Sell the tax delinquent abandoned property to a private 11 purchaser by auction or direct marketing. 12 (d) Make the tax delinquent abandoned property available to 13 qualified buyers under the urban homestead act. 14 (e) Transfer the tax delinquent abandoned property to a non- 15 profit organization for rehabilitation and reuse. 16 (f) Retain the tax delinquent abandoned property for a spe- 17 cific public purpose, including, but not limited to, a park, zoo, 18 or university, or as part of an existing project with an antici- 19 pated completion date of not more than 2 years after the date 20 title to the tax delinquent abandoned property vests in the local 21 unit of government. 01249'99 * Final page. 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