SB-0978, As Passed House, December 9, 2004                                  

    SUBSTITUTE FOR

    SENATE BILL NO. 978

                                                                             A bill to amend 1993 PA 331, entitled                                             

"State education tax act,"                                                  

by amending section 5b (MCL 211.905b), as added by 2004 PA 108.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 5b.  (1) This section applies only to a city or                        

2   township, or that portion of a city or township, in which no                

3   property  taxes, other than the   tax levied under this act or              

4   village taxes following, are levied in the summer of 2003 and              

5   any summer after 2003:  .

6   (a) The tax levied under this act.                                          

7       (b) Village taxes.                                                          

8       (c) Beginning in the summer of 2005, that portion of the                    

9   number of mills allocated to a county by a county tax allocation            

10  board or authorized for a county through a separate tax                     

11  limitation vote, if that portion of the number of mills allocated           

1   to a county by a county tax allocation board or authorized for a            

2   county through a separate tax limitation vote were not levied               

3   before the summer of 2005.

4       (2) A city or township shall collect the tax levied under                   

5   this act unless, before November 1, 2002, the legislative body of           

6   the city or township adopts a resolution declining to collect the           

7   tax levied under this act and, for a township, the treasurer                

8   concurs in writing with that resolution.  Before November 1,                

9   2002, if the city or township adopts a resolution declining to              

10  collect the tax under this act and, for a township, the treasurer           

11  concurs in writing with that resolution, the appropriate                    

12  assessing officer shall send a copy of that resolution and, for a           

13  township, that concurrence to the state treasurer and the                   

14  treasurer of the county in which the city or township is                    

15  located.  In January 2004 and each January thereafter, the                  

16  legislative body of a city or township that has declined to                 

17  collect the tax under this subsection may by resolution adopted             

18  by a majority of the legislative body rescind the earlier                   

19  decision to decline to collect the tax.  The city or township               

20  shall immediately send a copy of the resolution rescinding the              

21  earlier decision to decline to collect the tax to the state                 

22  treasurer and the treasurer of the county in which the city or              

23  township is located.  If a city or township collects the tax                

24  levied under this act pursuant to this section, that city or                

25  township shall retain $2.50 for each parcel of property in that             

26  city or township on which the tax levied under this act is billed           

27  under this section from the tax collected under this act before             

1   transmitting the tax collected as provided in this act.                     

2       (3) A county that receives a copy of a resolution declining                 

3   to collect the tax under this act and, for a township, a written            

4   concurrence as provided in subsection (2) shall collect the tax             

5   levied under this act pursuant to this section unless, before               

6   February 1, 2003, the county board of commissioners adopts a                

7   resolution declining to collect the tax levied under this act and           

8   the county treasurer concurs in writing with that resolution.               

9   Before February 1, 2003, if the county board of commissioners               

10  adopts a resolution declining to collect the tax under this act             

11  and the county treasurer concurs in writing with that resolution,           

12  the county treasurer shall send a copy of that resolution and               

13  that concurrence to the state treasurer.  In February 2004 and              

14  each February thereafter, a county board of commissioners that              

15  has declined to collect the tax under this subsection may by                

16  resolution, with the written concurrence of the county treasurer,           

17  rescind the earlier decision to decline to collect the tax.  The            

18  county treasurer shall immediately send a copy of the resolution            

19  rescinding the earlier decision to decline to collect the tax and           

20  the written concurrence of the county treasurer to the state                

21  treasurer.  If a county collects the tax levied under this act              

22  pursuant to this section, that county shall retain $2.50 for each           

23  parcel for property in that county on which the tax levied under            

24  this act is billed under this section from the tax collected                

25  under this act before transmitting the tax collected under this             

26  act to the state treasurer as provided in this act.                         

27      (4) If a city or township does not collect the tax levied                   

1   under this act pursuant to subsection (2) and if a county does              

2   not collect the tax levied under this act pursuant to subsection            

3   (3), the state treasurer shall collect the tax under the                    

4   provisions of the general property tax act.  The collection of              

5   the tax levied under this act is not subject to 1941 PA 122,                

6   MCL 205.1 to 205.31.  The tax levied under this act collected               

7   pursuant to this subsection is subject to a 1% administration               

8   fee.                                                                        

9       (5) All of the following apply to the collection of the tax                 

10  levied under this act by a county treasurer or the state                    

11  treasurer:                                                                  

12      (a) Not later than June 1, the township or city for which the               

13  tax is being collected shall deliver to the county treasurer or             

14  the state treasurer, as applicable, a certified copy of each                

15  assessment roll for taxable property located in the township or             

16  city.  Each assessment roll shall include the taxable value of              

17  each parcel subject to the collection of the tax levied under               

18  this act.  The county treasurer or state treasurer, as                      

19  applicable, shall remit the necessary cost incident to the                  

20  reproduction of the assessment roll to the township or city.                

21      (b) Not later than June 30, the county treasurer or the state               

22  treasurer, as applicable, shall spread the millage levied under             

23  this act against the assessment roll and prepare the tax roll.              

24      (c) The county treasurer or the state treasurer, as                         

25  applicable, may impose all or a portion of the fees and charges             

26  authorized under section 44 of the general property tax act, 1893           

27  PA 206, MCL 211.44, on taxes paid before March 1.  The county               

1   treasurer or the state treasurer, as applicable, shall retain the           

2   fees and charges imposed under this subdivision regardless of               

3   whether all or part of the fees and charges have been waived by             

4   the township or city.                                                       

5       (6) In relation to the assessment, spreading, and collection                

6   of taxes pursuant to this section, a county treasurer or the                

7   state treasurer, as applicable, shall have powers and duties                

8   similar to those prescribed by the general property tax act for             

9   township supervisors, township clerks, and township treasurers.             

10  However, this section shall not be considered to transfer any               

11  authority over the assessment of property.                                  

12      (7) A county treasurer or state treasurer collecting taxes                  

13  pursuant to this section shall be bonded for tax collection in              

14  the same amount and in the same manner as a township treasurer              

15  would be for undertaking the duties prescribed by this section.             

16      (8) If a county treasurer or the state treasurer collects the               

17  tax levied under this act pursuant to this section, all payments            

18  from this state for collecting the tax levied under this act in a           

19  summer levy, and all revenue generated by the administration fee,           

20  shall be deposited in a restricted account designated as the                

21  "state education tax collection account".  The county treasurer             

22  or the state treasurer, as applicable, shall direct the                     

23  investment of the account.  The county treasurer or the state               

24  treasurer, as applicable, shall credit to the account interest              

25  and earnings from the account investments.  Proceeds in that                

26  account shall only be used for the cost of collecting the tax               

27  levied under this act.  For a county collecting the tax under               

1   this act, the county board of commissioners shall appropriate               

2   sufficient money from the account to the county treasurer to                

3   cover the cost of collecting the tax levied under this act.                 

4       (9) The tax levied under this act that is collected by a city               

5   pursuant to this section on a date other than a date it collects            

6   city taxes shall be subject to the same fees and charges a city             

7   may impose under section 44 of the general property tax act, 1893           

8   PA 206, MCL 211.44, except that a city may impose the                       

9   administration fee on the tax levied under this act that is                 

10  billed in the summer even if the fee is not imposed on taxes                

11  billed in December.  The tax levied under this act that is                  

12  collected pursuant to this section on or before September 14 of             

13  each year by a city that collects school taxes on a date other              

14  than the date it collects city taxes shall be without interest,             

15  but the tax levied under this act that is collected after                   

16  September 14 in each year shall bear interest at the rate imposed           

17  by section 59 of the general property tax act, 1893 PA 206,                 

18  MCL 211.59, on delinquent property tax levies that become a lien            

19  in the same year.  All interest and penalties that are imposed              

20  prior to the date the tax levied under this act is returned as              

21  delinquent, other than the administration fee, shall be                     

22  transmitted to the state treasurer for deposit into the state               

23  school aid fund established in section 11 of article IX of the              

24  state constitution of 1963.  If imposed, the administration fee             

25  shall be retained by the city.                                              

26      (10) The tax levied under this act that is collected by a                   

27  township on or before September 14 in each year shall be without            

1   interest.  The tax levied under this act that is collected after            

2   September 14 of any year shall bear interest at the rate imposed            

3   by section 59 of the general property tax act, 1893 PA 206,                 

4   MCL 211.59, on delinquent property tax levies that become a lien            

5   in the same year.  The tax levied under this act that is                    

6   collected by a township is subject to the same fees and charges             

7   the township may impose under section 44 of the general property            

8   tax act, 1893 PA 206, MCL 211.44, except that a township may                

9   impose the administration fee on the tax levied under this act              

10  that is billed in the summer even if the fee is not imposed on              

11  taxes billed in December.  All interest and penalties that are              

12  imposed prior to the date the tax levied under this act is                  

13  returned delinquent, other than the administration fee, shall be            

14  transmitted to the state treasurer for deposit into the state               

15  school aid fund established in section 11 of article IX of the              

16  state constitution of 1963.  If imposed, the administration fee             

17  shall be retained by the township.                                          

18      (11) For taxes levied after December 31, 2003, not later than               

19  June 1 of each year, the county treasurer shall deliver to the              

20  state treasurer a statement of the total amount of the state                

21  education tax levy of the prior year not returned delinquent that           

22  was collected by the county treasurer and collected and remitted            

23  to the county treasurer by each city or township treasurer,                 

24  together with a statement for the county and for each city or               

25  township of the number of parcels from which the state education            

26  tax was collected, the number of parcels for which the state                

27  education tax was billed, and the total amount retained by the              

1   county treasurer and by the city or township treasurer as                   

2   permitted by subsections (2) and (3).