RETURN OF COLLECTED TAXES H.B. 5724 & 5726: COMMITTEE SUMMARY






House Bills 5724 and 5726 (as passed by the House)
Sponsor: Representative Brian Palmer
House Committee: Tax Policy
Senate Committee: Finance


Date Completed: 12-1-04

CONTENT House Bills 5724 and 5726 would amend the General Property Tax Act and the State Education Tax Act, respectively, to provide for the return of taxes erroneously collected or required to be returned pursuant to a bankruptcy proceeding.


House Bill 5724

Under the bill, if a local tax collecting unit had distributed taxes collected under the General Property Tax Act to a local taxing unit or to the State Treasurer, the local taxing unit or the State Treasurer would be required to return to the local tax collecting unit, upon request, an amount erroneously collected or required to be returned by court order in a bankruptcy proceeding filed after December 31, 1999.

House Bill 5726
Under the bill, the State Treasurer would be required to return to the local tax collecting unit, if it collected the State education tax, or the school district or intermediate school district, if it collected the tax, upon request, an amount erroneously collected or required to be returned by court order in a bankruptcy proceeding filed after December 31, 1999.


Proposed MCL 211.52a (H.B. 5724) Legislative Analyst: J.P. Finet
MCL 211.905 (H.B. 5726)

FISCAL IMPACT
The bills would have a negligible fiscal impact on State or local government.

Fiscal Analyst: David Zin

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb5724&5726/0304