Bill Text: MI HB4209 | 2019-2020 | 100th Legislature | Introduced


Bill Title: Property tax; payment and collection; individuals allowed to accept property tax payments; modify. Amends sec. 44 of 1893 PA 206 (MCL 211.44).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-02-20 - Bill Electronically Reproduced 02/19/2019 [HB4209 Detail]

Download: Michigan-2019-HB4209-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4209

 

 

February 19, 2019, Introduced by Reps. Slagh, Brixie, Sabo, Maddock, Leutheuser, Meerman, O'Malley and Robinson and referred to the Committee on Local Government and Municipal Finance.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 44 (MCL 211.44), as amended by 2012 PA 482.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 44. (1) Upon receipt of the tax roll, the township

 

treasurer or other collector shall proceed to collect the taxes.

 

The township treasurer or other collector shall mail to each

 

taxpayer at the taxpayer's last known address on the tax roll or to

 

the taxpayer's designated agent a statement showing the description

 

of the property against which the tax is levied, the taxable value

 

of the property, the amount of the tax on the property, and, for

 

property returned to the county treasurer for delinquent taxes, in

 

the year in which the property is returned to the county treasurer

 

for delinquent taxes only, notice of the fact that as of March 1

 


there were delinquent taxes on the property, that those delinquent

 

taxes were returned to the county treasurer for collection, and

 

contact information for the county treasurer. However, if not later

 

than 2 weeks before the tax bill is finalized, a local tax

 

collecting unit receives from the county notice that previously

 

delinquent taxes on a parcel of property are no longer delinquent,

 

the statement for that property under this subsection is not

 

required to include notice of the fact that as of March 1 there

 

were delinquent taxes on the property, that those delinquent taxes

 

were returned to the county treasurer for collection, and contact

 

information for the county treasurer. If a tax statement is mailed

 

to the taxpayer, a tax statement sent to a taxpayer's designated

 

agent may be in a summary form or may be in an electronic data

 

processing format. If the tax statement information is provided to

 

both a taxpayer and the taxpayer's designated agent, the tax

 

statement mailed to the taxpayer may be identified as an

 

informational copy. A township treasurer or other collector

 

electing to send a tax statement to a taxpayer's designated agent

 

or electing not to include an itemization in the manner described

 

in subsection (10)(d) in a tax statement mailed to the taxpayer

 

shall, upon request, mail a detailed copy of the tax statement,

 

including an itemization of the amount of tax in the manner

 

described by subsection (10)(d), to the taxpayer without charge.

 

     (2) The expense of preparing and mailing the statement shall

 

be paid from the county, township, city, or village funds. Failure

 

to send or receive the notice does not prejudice the right to

 

collect or enforce the payment of the tax. The township treasurer


or his or her designee shall remain in the office of the township

 

treasurer at some convenient place in the township from 9 a.m. to 5

 

p.m. to receive taxes on the following days:

 

     (a) At least 1 business day between December 25 and December

 

31 unless the township has an arrangement with a local financial

 

institution to receive taxes on behalf of the township treasurer

 

and to forward that payment to the township on the next business

 

day. The township shall provide timely notification of which

 

financial institutions will receive taxes for the township and

 

which days the treasurer or his or her designee will be in the

 

office to receive taxes. As used in this subsection, "designee"

 

means a deputy treasurer or other individual who serves the

 

township as an employee or elected official.

 

     (b) The last day that taxes are due and payable before being

 

returned as delinquent under section 78a(2).

 

     (c) For the collection of a summer tax levy, the last day

 

taxes are due and payable before interest is added under section

 

44a(5).44a(6).

 

     (3) Except as provided by subsection (7), on a sum voluntarily

 

paid before February 15 of the succeeding year, the local property

 

tax collecting unit shall add a property tax administration fee of

 

not more than 1% of the total tax bill per parcel. However, unless

 

otherwise provided for by an agreement between the assessing unit

 

and the collecting unit, if a local property tax collecting unit

 

other than a village does not also serve as the local assessing

 

unit, the excess of the amount of property tax administration fees

 

over the expense to the local property tax collecting unit in


collecting the taxes, but not less than 80% of the fee imposed,

 

shall be returned to the local assessing unit. A property tax

 

administration fee is defined as a fee to offset costs incurred by

 

a collecting unit in assessing property values, in collecting the

 

property tax levies, and in the review and appeal processes. The

 

costs of any appeals, in excess of funds available from the

 

property tax administration fee, may be shared by any taxing unit

 

only if approved by the governing body of the taxing unit. Except

 

as provided by subsection (7), on all taxes paid after February 14

 

and before taxes are returned as delinquent under section 78a(2)

 

the governing body of a city or township may authorize the

 

treasurer to add to the tax a property tax administration fee to

 

the extent imposed on taxes paid before February 15 and the day

 

that taxes are returned as delinquent under section 78a(2) a late

 

penalty charge equal to 3% of the tax. The governing body of a city

 

or township may waive interest from February 15 to the last day of

 

February on a summer property tax that has been deferred under

 

section 51 or any late penalty charge for the homestead property of

 

a senior citizen, paraplegic, quadriplegic, hemiplegic, eligible

 

serviceperson, eligible veteran, eligible widow or widower, 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 the person makes a claim before

 

February 15 for a credit for that property provided by chapter 9 of

 

the income tax act of 1967, 1967 PA 281, MCL 206.501 to 206.532, if

 

the person presents a copy of the form filed for that credit to the

 

local treasurer, and if the person has not received the credit


before February 15. The governing body of a city or township may

 

waive interest from February 15 to the day taxes are returned as

 

delinquent under section 78a(2) on a summer property tax deferred

 

under section 51 or any late penalty charge for a person's property

 

that is subject to a farmland development rights agreement recorded

 

with the register of deeds of the county in which the property is

 

situated as provided in section 36104 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.36104, if the

 

person presents a copy of the development rights agreement or

 

verification that the property is subject to a development rights

 

agreement before February 15. A 4% county property tax

 

administration fee, a property tax administration fee to the extent

 

imposed on and if authorized under subsection (7) for taxes paid

 

before taxes are returned as delinquent under section 78a(2), and

 

interest on the tax at the rate of 1% per month shall be added to

 

taxes collected by the township or city treasurer after the last

 

day taxes are payable before being returned as delinquent under

 

section 78a(2) and before settlement with the county treasurer, and

 

the payment shall be treated as though collected by the county

 

treasurer. If the statements required to be mailed by this section

 

are not mailed before December 31, the treasurer shall not impose a

 

late penalty charge on taxes collected after February 14.

 

     (4) The governing body of a local property tax collecting unit

 

may waive all or part of the property tax administration fee or the

 

late penalty charge, or both. A property tax administration fee

 

collected by the township treasurer shall be used only for the

 

purposes for which it may be collected as specified by subsection


(3) and this subsection. If the bond of the treasurer, as provided

 

in section 43, is furnished by a surety company, the cost of the

 

bond may be paid by the township from the property tax

 

administration fee.

 

     (5) If apprehensive of the loss of personal tax assessed upon

 

the roll, the township treasurer may enforce collection of the tax

 

at any time, and if compelled to seize property or bring an action

 

in December may add, if authorized under subsection (7), a property

 

tax administration fee of not more than 1% of the total tax bill

 

per parcel and 3% for a late penalty charge.

 

     (6) Along with taxes returned delinquent to a county

 

treasurer, the amount of the property tax administration fee

 

prescribed by subsection (3) that is imposed and not paid shall be

 

included in the return of delinquent taxes and, when delinquent

 

taxes are distributed by the county treasurer under this act, the

 

delinquent property tax administration fee shall be distributed to

 

the treasurer of the local unit who transmitted the statement of

 

taxes returned as delinquent. Interest imposed upon delinquent

 

property taxes under this act shall also be imposed upon the

 

property tax administration fee and, for purposes of this act other

 

than for the purpose of determining to which local unit the county

 

treasurer shall distribute a delinquent property tax administration

 

fee, any reference to delinquent taxes shall be considered to

 

include the property tax administration fee returned as delinquent

 

for the same property.

 

     (7) The local property tax collecting treasurer shall not

 

impose a property tax administration fee, collection fee, or any


type of late penalty charge authorized by law or charter unless the

 

governing body of the local property tax collecting unit approves,

 

by resolution or ordinance adopted after December 31, 1982, an

 

authorization for the imposition of a property tax administration

 

fee, collection fee, or any type of late penalty charge provided

 

for by this section or by charter, which authorization shall be is

 

valid for all levies that become a lien after the resolution or

 

ordinance is adopted. However, unless otherwise provided for by an

 

agreement between the assessing unit and the collecting unit, a

 

local property tax collecting unit that does not also serve as the

 

assessing unit shall impose a property tax administration fee on

 

each parcel at a rate equal to the rate of the fee imposed for city

 

or township taxes on that parcel.

 

     (8) The annual statement required by 1966 PA 125, MCL 565.161

 

to 565.164, or a monthly billing form or mortgagor passbook

 

provided instead of that annual statement shall must include a

 

statement to the effect that a taxpayer who was not mailed the tax

 

statement or a copy of the tax statement by the township treasurer

 

or other collector shall will receive, upon request and without

 

charge, a copy of the tax statement from the township treasurer or

 

other collector or, if the tax statement has been mailed to the

 

taxpayer's designated agent, from either the taxpayer's designated

 

agent or the township treasurer or other collector. A designated

 

agent who is subject to 1966 PA 125, MCL 565.161 to 565.164, and

 

who has been mailed the tax statement for taxes that became a lien

 

in the calendar year immediately preceding the year in which the

 

annual statement may be required to be furnished shall mail, upon


request and without charge to a taxpayer who was not mailed that

 

tax statement or a copy of that tax statement, a copy of that tax

 

statement.

 

     (9) For taxes levied after December 31, 2001, if taxes levied

 

on qualified real property remain unpaid on February 15, all of the

 

following shall apply:

 

     (a) The unpaid taxes on that qualified real property shall be

 

collected in the same manner as unpaid taxes levied on personal

 

property are collected under this act.

 

     (b) Unpaid taxes on qualified real property shall not be

 

returned as delinquent to the county treasurer for forfeiture,

 

foreclosure, and sale under sections 78 to 79a.

 

     (c) If a county treasurer discovers that unpaid taxes on

 

qualified real property have been returned as delinquent for

 

forfeiture, foreclosure, and sale under sections 78 to 79a, the

 

county treasurer shall return those unpaid taxes to the appropriate

 

local tax collection unit for collection as provided in subdivision

 

(a).

 

     (10) As used in this section:

 

     (a) "Designated agent" means an individual, partnership,

 

association, corporation, receiver, estate, trust, or other legal

 

entity that has entered into an escrow account agreement or other

 

agreement with the taxpayer that obligates that individual or legal

 

entity to pay the property taxes for the taxpayer or, if an

 

agreement has not been entered into, that was designated by the

 

taxpayer on a form made available to the taxpayer by the township

 

treasurer and filed with that treasurer. The designation by the


taxpayer shall remain remains in effect until revoked by the

 

taxpayer in a writing filed with the township treasurer. The form

 

made available by the township treasurer shall must include a

 

statement that submission of the form allows the treasurer to mail

 

the tax statement to the designated agent instead of to the

 

taxpayer and a statement notifying the taxpayer of his or her right

 

to revoke the designation by a writing filed with the township

 

treasurer.

 

     (b) "Qualified real property" means buildings and improvements

 

located upon leased real property that are assessed as real

 

property under section 2(1)(c), except buildings and improvements

 

exempt under section 9f, if the value of the buildings or

 

improvements is not otherwise included in the assessment of the

 

real property.

 

     (c) "Taxpayer" means the owner of the property on which the

 

tax is imposed.

 

     (d) When describing in subsection (1) that the amount of tax

 

on the property must be shown in the tax statement, "amount of tax"

 

means an itemization by dollar amount of each of the several ad

 

valorem property taxes and special assessments that a person may

 

pay under section 53 and an itemization by millage rate, on either

 

the tax statement or a separate form accompanying the tax

 

statement, of each of the several ad valorem property taxes that a

 

person may pay under section 53. The township treasurer or other

 

collector may replace the itemization described in this subdivision

 

with a statement informing the taxpayer that the itemization of the

 

dollar amount and millage rate of the taxes is available without


charge from the local property tax collecting unit.

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