SB-1433, As Passed House, December 11, 2008
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1433
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 78, 89a, 89b, and 89c (MCL 211.78, 211.89a,
211.89b, and 211.89c), section 78 as added by 1999 PA 123, section
89a as amended and section 89b as added by 2003 PA 246, and section
89c as added by 2007 PA 31, and by adding sections 89d and 89e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78. (1) The legislature finds that there exists in this
state a continuing need to strengthen and revitalize the economy of
this state and its municipalities by encouraging the efficient and
expeditious return to productive use of property returned for
delinquent taxes. Therefore, the powers granted in this act
relating to the return of property for delinquent taxes constitute
the performance by this state or a political subdivision of this
state of essential public purposes and functions.
(2) It is the intent of the legislature that the provisions of
this act relating to the return, forfeiture, and foreclosure of
property for delinquent taxes satisfy the minimum requirements of
due process required under the constitution of this state and the
constitution of the United States but that those provisions do not
create new rights beyond those required under the state
constitution of 1963 or the constitution of the United States. The
failure of this state or a political subdivision of this state to
follow a requirement of this act relating to the return,
forfeiture, or foreclosure of property for delinquent taxes shall
not be construed to create a claim or cause of action against this
state or a political subdivision of this state unless the minimum
requirements of due process accorded under the state constitution
of 1963 or the constitution of the United States are violated.
(3) Not later than December 1, 1999, the county board of
commissioners of a county, by a resolution adopted at a meeting
held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and with the written concurrence of the county treasurer
and the county executive, if any, may elect to have this state
foreclose property under this act forfeited to the county treasurer
under section 78g. At any time during December 2004, the county
board of commissioners of a county, by a resolution adopted at a
meeting held pursuant to the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, and with the written concurrence of the county
treasurer and county executive, if any, may do either of the
following:
(a) Elect to have this state foreclose property under this act
forfeited to the county treasurer under section 78g.
(b) Rescind its prior resolution by which it elected to have
this state foreclose property under this act forfeited to the
county treasurer under section 78g.
(4) Beginning January 1, 2009 through March 1, 2009, the
county board of commissioners of a county in which is located an
eligible city, as that term is defined in section 89d, may, by a
resolution adopted at a meeting held pursuant to the open meetings
act, 1976 PA 267, MCL 15.261 to 15.275, and with the written
concurrence of the county treasurer and county executive, if any,
rescind its prior resolution by which it elected to have this state
foreclose property under this act forfeited to the county treasurer
under section 78g.
(5) (4)
The foreclosure of forfeited
property by a county is
voluntary and is not an activity or service required of units of
local government for purposes of section 29 of article IX of the
state constitution of 1963.
(6) (5)
A county and a local governmental
unit within that
county may enter into an agreement for the collection of property
taxes or the enforcement and consolidation of tax liens within that
local governmental unit. A local governmental unit shall not
establish a delinquent tax revolving fund under section 87b.
(7) (6)
As used in this section and
sections 78a through 157
155 for purposes of the collection of taxes returned as delinquent:
(a) "Foreclosing governmental unit" means 1 of the following:
(i) The treasurer of a county.
(ii) This state if the county has elected under subsection (3)
to have this state foreclose property under this act forfeited to
the county treasurer under section 78g.
(b) "Forfeited" or "forfeiture" means a foreclosing
governmental unit may seek a judgment of foreclosure under section
78k if the property is not redeemed as provided under this act, but
does not acquire a right to possession or any other interest in the
property.
Sec. 89a. (1) Notwithstanding the provisions of a charter of a
county adopted pursuant to 1966 PA 293, MCL 45.501 to 45.521, or
the provisions of the charter of a home rule city, to the contrary,
the
city treasurer of a city that contains a first class school
district
with a population of 600,000
or more shall return all
uncollected delinquent taxes levied on real property after December
31, 2002 on the March 1 immediately following the year in which the
taxes are levied. For the purposes of this section, delinquent
taxes include all interest and penalties that accrue after August
15 of the year in which all taxes billed by the city are levied if
that interest and penalty remain unpaid on the date the delinquent
taxes are returned to the county treasurer.
(2)
The city treasurer of a city that contains a first class
school
district with a population of
600,000 or more may return all
uncollected delinquent taxes levied in 2001, 2002, or 2001 and 2002
to the county treasurer for collection under this section on March
1, 2004. A city treasurer shall provide the county treasurer
written notice of his or her intent to return uncollected
delinquent taxes levied in 2001 or 2002 under this subsection not
later than February 1, 2004. If uncollected delinquent taxes levied
in 2001 or 2002 are returned to the county treasurer for collection
under this subsection, the county treasurer shall collect those
taxes with taxes returned as delinquent in 2004.
(3) After the delinquent taxes levied on real property are
returned to the county treasurer for collection under this section,
the provisions of this act apply for collection of those taxes and,
except for taxes levied on or before December 31, 2002, for the
issuance of notes in anticipation of the collection of those taxes.
(4) A judgment entered under section 78k that extinguishes any
lien for unpaid taxes or special assessments does not extinguish
the right of the city to bring an in personam action under this act
or its charter to enforce personal liability for those unpaid taxes
or special assessments. The city may bring an in personam action to
enforce personal liability for unpaid delinquent taxes levied prior
to January 1, 2003 or special assessments not returned as
delinquent under this section within 15 years after the taxes or
special assessments are levied.
(5) If a city treasurer returns uncollected delinquent taxes
levied on real property on or before December 31, 2002 to the
county treasurer for collection under this section, the county
treasurer shall remit to the city treasurer after each month the
taxes and interest collected during that month.
(6)
As used in this section, "first class school district"
means
a school district organized as a school district of the first
class
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
Sec.
89b. (1) For taxes levied after December 31, 2003,
notwithstanding the provisions of a charter of a county adopted
pursuant to 1966 PA 293, MCL 45.501 to 45.521, or the provisions of
the
charter of a home rule city, to the contrary, a city containing
a
first class school district with
a population of 600,000 or more
shall do all of the following:
(a) Prepare and submit to each taxpayer a statement indicating
the amount of tax levied on real and personal property by all
taxing jurisdictions authorized to levy a general ad valorem
property tax in that city.
(b) Collect the tax levied on real and personal property by
all taxing jurisdictions authorized to levy a general ad valorem
property tax in that city.
(2)
As used in this section, "first class school district"
means
a school district organized as a school district of the first
class
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
Sec.
89c. (1) In any local tax collecting unit in which is
located
a first class school district a
city with a population of
600,000 or more, the local tax collecting unit may treat as
delinquent under sections 87b, 87c, and 87d a solid waste fee that
is delinquent under the terms of any ordinance authorizing the
solid waste fee, if that solid waste fee was included in the tax
statement under section 44.
(2) If a solid waste fee is delinquent on the March 1
immediately preceding the date that the solid waste fee is returned
as delinquent to the county treasurer under subsection (1), a
county treasurer may include that solid waste fee in the county's
delinquent tax revolving fund.
(3) If a solid waste fee is returned to a county treasurer as
delinquent under subsection (2), that solid waste fee shall be a
fee treated as a delinquent tax for purposes of sections 87b, 87c,
and 87d and the property on which the fee is assessed is subject to
forfeiture, foreclosure, and sale for delinquent taxes as provided
in this act if the local tax collecting unit has also returned to
that county treasurer uncollected delinquent taxes levied on the
property on which the solid waste fee is assessed.
(4) If an owner redeems property that is his or her principal
residence that is returned to the county treasurer for delinquent
taxes and a delinquent solid waste fee is assessed to that owner's
principal residence, the owner may redeem his or her principal
residence without payment of the delinquent solid waste fee. As
used in this subsection, principal residence means property exempt
under section 7cc.
(5) This section applies to any fee that was delinquent on or
after March 1, 2007 and that was included in the delinquent tax
roll delivered to a county treasurer at the same time as delinquent
taxes for a year in which the fee is assessed.
(6)
As used in this section, :
(a)
"First class school district" means a first class school
district
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
(b)
"Solid "solid waste fee" means that term as defined in the
ordinance or resolution of the local tax collecting unit
authorizing the assessment of the solid waste fee and includes all
interest, penalties, and fees imposed on that solid waste fee.
Sec. 89d. (1) Notwithstanding the provisions of the charter of
a home rule city to the contrary, the city treasurer of an eligible
city shall return to the county treasurer all uncollected
delinquent taxes levied on real property after December 31, 2008 on
the March 1 immediately following the year in which the taxes are
levied.
(2) The city treasurer of an eligible city may return all
uncollected delinquent taxes levied on real property prior to
December 31, 2008 to the county treasurer for collection on March
1, 2010. A city treasurer shall provide written notice to the
county treasurer of his or her intent to return uncollected
delinquent taxes levied prior to December 31, 2008 under this
subsection not later than February 1, 2010. If uncollected
delinquent taxes levied prior to December 31, 2008 are returned to
the county treasurer for collection under this subsection, the
county treasurer shall collect those taxes with taxes returned as
delinquent in 2010.
(3) After the uncollected delinquent taxes levied on real
property are returned to the county treasurer for collection under
this section, the provisions of this act apply for collection of
those taxes and for the issuance of notes in anticipation of the
collection of those taxes.
(4) A judgment entered under section 78k that extinguishes any
lien for unpaid taxes or special assessments does not extinguish
the right of the city to bring an in personam action under this act
or its charter to enforce personal liability for those unpaid taxes
or special assessments. The city may bring an in personam action to
enforce personal liability for unpaid delinquent taxes levied prior
to January 1, 2009 or special assessments not returned as
delinquent under this section within 15 years after the taxes or
special assessments are levied.
(5) As used in this section:
(a) "Delinquent taxes" or "uncollected delinquent taxes"
includes the following:
(i) Any taxes levied by and payable to the city treasurer in
installments the balance of which remains unpaid on January 1
immediately following the year in which the taxes are levied, and
includes all interest and penalties that accrue after July 31 of
the year in which all taxes billed by the eligible city are levied
if that interest and those penalties remain unpaid on the date the
delinquent taxes are returned to the county treasurer.
(ii) Any liens for unpaid tax and assessment liability acquired
by the eligible city after December 31, 1999 and prior to January
1, 2009 pursuant to provisions contained within the eligible city's
charter.
(b) "Eligible city" means a city with a population of more
than 50,000 and less than 100,000 that is located in a county with
a population of less than 350,000 as determined by the most recent
federal decennial census.
Sec. 89e. (1) Notwithstanding the provisions of the charter of
a home rule city to the contrary, and with the agreement of the
county treasurer, the city treasurer of an eligible city may return
to the county treasurer all uncollected delinquent taxes levied on
personal property after December 31, 2008 on the March 1
immediately following the year in which the taxes are levied.
(2) With the agreement of the county treasurer, the city
treasurer of an eligible city may return all uncollected delinquent
taxes levied on personal property prior to December 31, 2008 to the
county treasurer for collection on March 1 of the year in which the
county treasurer agrees to the return of uncollected delinquent
taxes under this subsection. A city treasurer shall provide to the
county treasurer written notice of his or her intent to return
uncollected delinquent taxes levied prior to December 31, 2008
under this subsection not later than February 1 of the year in
which the county treasurer agrees to the return of uncollected
delinquent taxes under this subsection. If those uncollected
delinquent taxes are returned to the county treasurer for
collection under this subsection, the county treasurer shall
collect those taxes with taxes returned as delinquent in that same
year.
(3) After the uncollected delinquent taxes levied on personal
property are returned to the county treasurer for collection under
this section, the provisions of this act apply for collection of
those taxes.
(4) As used in this section:
(a) "Delinquent taxes" or "uncollected delinquent taxes"
includes any taxes levied by and payable to the city treasurer in
installments the balance of which remains unpaid on January 1
immediately following the year in which the taxes are levied, and
includes all interest and penalties that accrue after July 31 of
the year in which all taxes billed by the city are levied if that
interest and those penalties remain unpaid on the date the
delinquent taxes are returned to the county treasurer.
(b) "Eligible city" means a city with a population of more
than 50,000 and less than 100,000 that is located in a county with
a population of less than 350,000.