House Introduced Bill 5213

HOUSE BILL No. 5213


     October 16, 2001, Introduced by Reps. Wojno, Richardville, Vear, Cassis, Birkholz and Williams and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending section 56a (MCL 211.56a), as amended by 1998 PA

   435.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 56a.  (1) If a tax levied on personal property remains

 2
      uncollected for more than 5 years after that tax becomes delin-

 3
      quent, the  township or city  treasurer OF THE LOCAL TAX COLLECT-

 4
      ING UNIT shall prepare a statement showing all of the following:

 5
           (a) The taxes levied upon personal property that remain

 6
      unpaid.

 7
           (b) The names of the persons against whom those taxes were

 8
      assessed.






   05287'01                                                 FDD                                   2

 1
           (c) The amount assessed against each person that remains

 2
      uncollected, together with all fees, penalties, and interest due

 3
      under this act or under a city charter.

 4
           (2) The original copy of the statement prepared pursuant to

 5
      subsection (1) shall be filed with the  circuit court of the

 6
      county in which the township or city is located  GOVERNING BODY

 7
      OF THE LOCAL TAX COLLECTING UNIT, together with a petition.   Two

 8
      or more township or city treasurers may file a joint petition

 9
      under this section.

10
           (3) The petition shall state all of the following:

11
           (a) That the taxes upon personal property as shown in the

12
      statement have remained unpaid for more than 5 years after they

13
      were returned to the county treasurer as delinquent.

14
           (b) That the taxes have remained delinquent despite the fact

15
      that the  township or city  treasurer OF THE LOCAL TAX COLLECTING

16
      UNIT or his or her predecessors in office exercised due diligence

17
      in an effort to collect the taxes.

18
           (c) The taxes are, to the  township or city  LOCAL TAX COL-

19
      LECTING UNIT treasurer's best knowledge and information,

20
      uncollectible.

21
           (4) The petition shall request that a date, not less than 30

22
      nor more than 45 days after the date of filing the petition, be

23
      set for a hearing on the petition and that the  court enter a

24
      judgment in favor of the township or city, striking  GOVERNING

25
      BODY OF THE LOCAL TAX COLLECTING UNIT, BY RESOLUTION ADOPTED BY A

26
      MAJORITY OF THE MEMBERS ELECTED TO AND SERVING, STRIKE those

27
      taxes from the tax rolls of the  county and township or city



   05287'01                                   3

 1
      LOCAL TAX COLLECTING UNIT AND OF THE COUNTY IN WHICH THE LOCAL

 2
      TAX COLLECTING UNIT IS LOCATED.  If a  judgment is entered in

 3
      favor of the township or city, the  RESOLUTION IS ADOPTED UNDER

 4
      THIS SUBSECTION, ALL OF THE FOLLOWING SHALL OCCUR:

 5
           (A) THE taxes in the statement shall cease to constitute an

 6
      asset of the  township or city  LOCAL TAX COLLECTING UNIT, the

 7
      county in which the  township or city  LOCAL TAX COLLECTING UNIT

 8
      is located, and any school district or other taxing entity in

 9
      which the personal property was located at the time it was

10
      assessed for taxes.

11
           (B) THE DEBT CREATED UNDER THIS ACT OR UNDER ANY CITY OR

12
      TOWNSHIP CHARTER OF THE PERSON ASSESSED FOR THOSE TAXES TO THE

13
      LOCAL TAX COLLECTING UNIT SHALL, FROM THE DATE OF ADOPTION OF THE

14
      RESOLUTION UNDER SUBSECTION (4), ASSUME THE STATUS OF A DEBT

15
      AGAINST WHICH THE STATUTE OF LIMITATIONS HAS RUN.

16
           (5) The  township or city  treasurer OF THE LOCAL TAX COL-

17
      LECTING UNIT shall, not less than 10 days before the date  set by

18
      the circuit court for  OF the hearing UNDER SUBSECTION (4),

19
      notify the county treasurer and the clerk or secretary of any

20
      school district in which any personal property may have been

21
      located at the time it was assessed for taxes that a petition was

22
      filed with the  circuit court  GOVERNING BODY OF THE LOCAL TAX

23
      COLLECTING UNIT under this section, that the statement required

24
      under this section was prepared, and the date set for the hearing

25
      on the petition.

26
            (6) Within 15 days after the hearing on the petition, the

27
      court shall enter a judgment that as to all items or personal



   05287'01                                   4

 1
      taxes set forth in the statement of uncollected taxes filed with

 2
      the court for which the township or city treasurer and his or her

 3
      predecessors in office have exercised due diligence in an effort

 4
      to collect the taxes upon that personal property, those taxes

 5
      shall be stricken from the tax rolls of the county and of the

 6
      township or city and shall cease to constitute an asset of the

 7
      township or city, the county in which the township or city is

 8
      located, and any school district in which the personal property

 9
      was located at the time it was assessed for taxes, and that the

10
      debt created by the provisions of this act or by any city charter

11
      of the person assessed for those taxes to the township or city

12
      shall, from the date of entry of the judgment, assume the status

13
      of a debt against which the statute of limitations has run.

14
           (6)  (7)  A copy of the  judgment  RESOLUTION ADOPTED
   UNDER

15
      SUBSECTION (4) shall be served upon the county clerk, the clerk

16
      of the  township or city  LOCAL TAX COLLECTING UNIT, and the

17
      clerk or secretary of each school district located in the

18
       township or city  LOCAL TAX COLLECTING UNIT.

19
           (7)  (8)  In a county in which the county treasurer collects

20
      delinquent personal property taxes as provided in section 56, the

21
      county treasurer shall undertake and carry out all of the pro-

22
      ceedings to strike delinquent personal property taxes from the

23
      county tax rolls as provided in this section.











   05287'01          Final page.                            FDD