HB 5717, As Passed Senate

HB-5717, As Passed Senate, December 14, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5717

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 59 and 78n (MCL 211.59 and 211.78n), section

59 as amended by 2001 PA 97 and section 78n as added by 1999 PA

123.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 59. (1) A person may pay the taxes, any 1 of the taxes, a

portion of the taxes specified by resolution of the county board of

commissioners, or if a specification is not made by a resolution of

the county board of commissioners, a portion of the taxes approved

by the county treasurer on a parcel or description of property

returned as delinquent, or on an undivided share of a parcel or

description of property returned as delinquent. For taxes levied on

real property before January 1, 1999 and for taxes levied on

personal property, the amount paid under this subsection shall

include interest computed from the March 1 after the taxes were

assessed at the rate of 1% per month or fraction of a month, except

as provided in section 89, and 4% of the delinquent taxes as a

county property tax administration fee that shall be a minimum of

$1.00 per payment of delinquent taxes, except as provided in

section 89. Payment under this subsection shall be made to the

county treasurer of the county in which the property is ~~situated,~~

~~at any time before the property is sold at a tax sale held pursuant~~

~~to section 60, bid off to this state pursuant to section 70, or~~

forfeited to a county treasurer pursuant to section 78g. The county

treasurer and the treasurer for the local tax collecting unit shall

allocate and distribute the taxes and interest paid proportionately

among the county or local tax collecting unit funds and the

property tax administration fee returned as delinquent under

section 44(6) to the treasurer of the local tax collecting unit who

transmitted the taxes returned as delinquent. For taxes levied

before January 1, 1999, on all descriptions of property with unpaid

taxes on the October 1 before the time prescribed for the sale of a

tax lien on the property, an additional $10.00 shall be charged for

expenses, which shall be a lien on the property. If collected,

before January 1, 2006, $5.00 of this expense charge shall be

credited to a restricted revenue fund of this state, to be known as

the delinquent property tax administration fund, and after December

31, 2005 $5.00 of this expense charge shall be deposited in the

land reutilization fund created in section 78n, to reimburse this

state for the cost of publishing the lists of property and other

expenses, and $5.00 shall belong to the general fund of the county

to reimburse the county for the expense incurred in preparing the

list of delinquent property for sale or forfeiture.

(2) For taxes levied before January 1, 1999, the property tax

administration fee paid to the county treasurer shall be credited

to the general fund of the county and the property tax

administration fee paid to the state treasurer shall be credited to

the ~~delinquent property tax administration fund~~ land

reutilization fund created in section 78n. Amounts credited to the

general fund of the county shall be used only for the purposes

specified in subsection (6).

(3) For taxes levied before January 1, 1999, and for taxes

levied after December 31, 1998, a county board of commissioners, by

resolution, may provide all of the following for taxes paid before

May 1 in the first year of delinquency for the homestead property

of a senior citizen, paraplegic, hemiplegic, quadriplegic, eligible

serviceman, eligible veteran, eligible widow, totally and

permanently disabled person, or blind person, as those persons are

defined in chapter 9 of the income tax act of 1967, 1967 PA 281,

MCL 206.501 to 206.532, if a claim is made before February 15 for

the credit provided by chapter 9 of the income tax act of 1967,

1967 PA 281, MCL 206.501 to 206.532, if that claimant presents a

copy of the form filed for that credit to the county treasurer, and

if that claimant has not received the credit before March 1:

(a) Any interest, fee, or penalty in excess of the interest,

fee, or penalty that would have been added if the tax had been paid

before February 15 is waived.

(b) Interest paid under subsection (1) or section 89(1)(a) is

waived unless the interest is pledged to the repayment of

delinquent tax revolving fund notes or payable to the county

delinquent tax revolving fund, in which case the interest shall be

refunded from the general fund of the county.

(4) The treasurer of the local tax collecting unit shall

indicate on the delinquent tax roll if a 1% property tax

administration fee was added to taxes collected before February 15.

(5) The fees authorized and collected under this section and

credited to the delinquent property tax administration fund shall

be used by the department of treasury to pay expenses incurred in

the administration of this act.

(6) The county property tax administration fee shall be used

by the county to offset the costs incurred in and ancillary to

collecting delinquent property taxes and for purposes authorized by

sections 87b and 87d.

Sec. 78n. (1) The land reutilization fund is created within

the department of treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the fund, including a transfer of funds

from the delinquent property tax administration fund as provided in

subsection (5). The state treasurer shall direct the investment of

the fund. The state treasurer shall credit to the fund interest and

earnings from fund investments.

(3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

(4) The department of treasury may expend money from the fund

for 1 or more of the following purposes:

(a) Contracts with title insurance companies pursuant to

section 78i.

(b) Costs of determining addresses, service of notices, and

recording fees incurred pursuant to section 78i.

treasurer.

(d) Other costs incurred in administering the foreclosure and

disposition of property forfeited for delinquent taxes under this

act.

(5) The state treasurer may transfer to the fund any balance

remaining in the delinquent property tax administration fund of

this state created in section 59.

(6) ~~(5)~~ As used in this section, "fund" means the land

reutilization fund created in this section.