February 24, 2009, Introduced by Reps. Sheltrown, Neumann, Schuitmaker, Mayes, Constan, Stanley, Bauer, Leland, Meadows, Geiss, Polidori and Dean and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 78a, 78e, 78f, and 78g (MCL 211.78a, 211.78e,
211.78f, and 211.78g), section 78a as amended by 2008 PA 352,
section 78e as added by 1999 PA 123, and sections 78f and 78g as
amended by 2003 PA 263.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78a. (1) For taxes levied after December 31, 1998, all
property returned for delinquent taxes, and upon which taxes,
interest, penalties, and fees remain unpaid after the property is
returned as delinquent to the county treasurers of this state under
this act, is subject to forfeiture, foreclosure, and sale for the
enforcement and collection of the delinquent taxes as provided in
section 78, this section, and sections 78b to 79a. As used in
section 78, this section, and sections 78b to 79a, "taxes" includes
interest, penalties, and fees imposed before the taxes become
delinquent and unpaid special assessments or other assessments that
are due and payable up to and including the date of the foreclosure
hearing under section 78k.
(2) On March 1 in each year, taxes levied in the immediately
preceding year that remain unpaid shall be returned as delinquent
for collection. However, if the last day in a year that taxes are
due and payable before being returned as delinquent is on a
Saturday, Sunday, or legal holiday, the last day taxes are due and
payable before being returned as delinquent is on the next business
day and taxes levied in the immediately preceding year that remain
unpaid shall be returned as delinquent on the immediately
succeeding business day. Except as otherwise provided in section 79
for certified abandoned property, property delinquent for taxes
levied
in the second third year preceding the forfeiture under
section 78g or in a prior year to which this section applies shall
be forfeited to the county treasurer for the total of the unpaid
taxes, interest, penalties, and fees for those years as provided
under section 78g.
(3) A county property tax administration fee of 4% and
interest computed at a noncompounded rate of 1% per month or
fraction of a month on the taxes that were originally returned as
delinquent, computed from the date that the taxes originally became
delinquent, shall be added to property returned as delinquent under
this section. A county property tax administration fee provided for
under this subsection shall not be less than $1.00.
(4) Any person with an unrecorded property interest or any
other person who wishes at any time to receive notice of the return
of delinquent taxes on a parcel of property may pay an annual fee
not to exceed $5.00 by February 1 to the county treasurer and
specify the parcel identification number, the address of the
property, and the address to which the notice shall be sent.
Holders of any undischarged mortgages wishing to receive notice of
the return of delinquent taxes on a parcel or parcels of property
may provide a list of such parcels in a form prescribed by the
county treasurer and pay an annual fee not to exceed $1.00 per
parcel to the county treasurer and specify for each parcel the
parcel identification number, the address of the property, and the
address to which the notice should be sent. The county treasurer
shall notify the person or holders of undischarged mortgages if
delinquent taxes on the property or properties are returned within
that year.
(5) Notwithstanding any charter provision to the contrary, the
governing body of a local governmental unit that collects
delinquent taxes may establish for any property, by ordinance,
procedures for the collection of delinquent taxes and the
enforcement of tax liens and the schedule for the forfeiture or
foreclosure of delinquent tax liens. The procedures and schedule
established by ordinance shall conform at a minimum to those
procedures
and schedules established under sections 78a this
section and sections 78b to 78l, except that those taxes subject to
a payment plan approved by the treasurer of the local governmental
unit as of July 1, 1999 shall not be considered delinquent if
payments are not delinquent under that payment plan.
Sec. 78e. (1) Except as otherwise provided in section 79 for
certified abandoned property, on November 1 of each tax year, the
county treasurer shall prepare a list of all property subject to
forfeiture for delinquent taxes on the immediately succeeding March
1. The list shall include all property on which delinquent taxes,
interest, penalties, and fees are unpaid on the November 1
immediately
succeeding in the year 2
years after the date that
taxes levied on the property were returned to the county treasurer
for forfeiture, foreclosure, and sale under section 60a(1) or (2)
or returned to the county treasurer as delinquent under section
78a. The list shall indicate for each parcel the total amount of
delinquent taxes, interest, penalties, and fees, computed to the
day preceding the forfeiture under section 78g.
(2) Not later than December 1 in each tax year, the county
treasurer shall determine, to the extent possible, all of the
following based exclusively on the records contained in the office
of the local assessor, local treasurer, and county treasurer for
property subject to forfeiture for delinquent taxes under section
78g on the immediately succeeding March 1:
(a) The street address of the property.
(b) The name and address of all of the following:
(i) The owners.
(ii) The holder of any undischarged mortgage, tax certificate
issued under former section 71, or other legal interest.
(iii) A subsequent purchaser under any land contract.
(iv) A person entitled to notice of the return of
delinquent
taxes
under section 78a(5).
Sec. 78f. (1) Except as otherwise provided in section 79 for
certified abandoned property, not later than the February 1 in the
year 2 years immediately succeeding the date that unpaid taxes were
returned to the county treasurer for forfeiture, foreclosure, and
sale under section 60a(1) or (2) or returned to the county
treasurer as delinquent under section 78a, the county treasurer
shall send a notice by certified mail, return receipt requested, to
the person to whom a tax bill for property returned for delinquent
taxes was last sent and, if different, to the person identified as
the owner of property returned for delinquent taxes as shown on the
current records of the county treasurer and to those persons
identified under section 78e(2). The notice required under this
subsection shall include all of the following:
(a) The date property on which those unpaid taxes were
returned as delinquent will be forfeited to the county treasurer
for the unpaid delinquent taxes, interest, penalties, and fees.
(b) A statement that a person who holds a legal interest in
the property may lose that interest as a result of the forfeiture
and subsequent foreclosure proceeding.
(c) A legal description or parcel number of the property and
the street address of the property, if available.
(d) The person to whom the notice is addressed.
(e) The unpaid delinquent taxes, interest, penalties, and fees
due on the property.
(f) A schedule of the additional interest, penalties, and fees
that will accrue on the immediately succeeding March 1 pursuant to
section 78g if those unpaid delinquent taxes, interest, penalties,
and fees due on the property are not paid.
(g) A statement that unless those unpaid delinquent taxes,
interest, penalties, and fees are paid on or before the March 31
immediately succeeding the entry in an uncontested case of a
judgment foreclosing the property under section 78k, absolute title
to the property shall vest in the foreclosing governmental unit.
(h) A statement of the person's rights of redemption and
notice that the rights of redemption will expire on the March 31
immediately succeeding the entry in an uncontested case of a
judgment foreclosing the property under section 78k.
(2) The notice required under subsection (1) shall also be
mailed to the property by first-class mail, addressed to
"occupant", if the notice was not sent to the occupant of the
property pursuant to subsection (1).
(3) A county treasurer may insert 1 or more additional notices
in a newspaper published and circulated in the county in which the
property is located, if there is one. If no newspaper is published
in that county, publication may be made in a newspaper published
and circulated in an adjoining county.
(4) The county treasurer may publish the street address, if
available, of property subject to forfeiture under section 78g on
the immediately succeeding March 1 for delinquent taxes or the
street address, if available, of property subject to forfeiture
under section 78g on the immediately succeeding March 1 for
delinquent taxes and the name of the person to whom a tax bill for
property returned for delinquent taxes was last sent and, if
different, the name of the person identified as the owner of the
property returned for delinquent taxes as shown on the current
records of the county treasurer in a newspaper published and
circulated in the county in which the property is located, if there
is one. If no newspaper is published in that county, publication
may be made in a newspaper published and circulated in an adjoining
county.
Sec. 78g. (1) Except as otherwise provided in this subsection,
on March 1 in each tax year, certified abandoned property and
property that is delinquent for taxes, interest, penalties, and
fees
for the immediately preceding 12 24 months or more is
forfeited to the county treasurer for the total amount of those
unpaid delinquent taxes, interest, penalties, and fees. If property
is forfeited to a county treasurer under this subsection, the
foreclosing governmental unit does not have a right to possession
of the property until the April 1 immediately succeeding the entry
of a judgment foreclosing the property under section 78k or in a
contested case until 22 days after the entry of a judgment
foreclosing the property under section 78k. If property is
forfeited to a county treasurer under this subsection, the county
treasurer shall add a $175.00 fee to each parcel of property for
which those delinquent taxes, interest, penalties, and fees remain
unpaid. A county treasurer shall withhold a parcel of property from
forfeiture for any reason determined by the state tax commission.
The procedure for withholding a parcel of property from forfeiture
under this subsection shall be determined by the state tax
commission.
(2) Not more than 45 days after property is forfeited under
subsection (1), the county treasurer shall record with the county
register of deeds a certificate in a form determined by the
department of treasury for each parcel of property forfeited to the
county treasurer, specifying that the property has been forfeited
to the county treasurer and not redeemed and that absolute title to
the property shall vest in the county treasurer on the March 31
immediately succeeding the entry of a judgment foreclosing the
property under section 78k or in a contested case 21 days after the
entry of a judgment foreclosing the property under section 78k. If
a certificate of forfeiture is recorded in error, the county
treasurer shall record with the county register of deeds a
certificate of error in a form prescribed by the department of
treasury. A certificate submitted to the county register of deeds
for recording under this subsection need not be notarized and may
be authenticated by a digital signature of the county treasurer or
by other electronic means. If the county has elected under section
78 to have this state foreclose property under this act forfeited
to the county treasurer under this section, the county treasurer
shall immediately transmit to the department of treasury a copy of
each certificate recorded under this subsection. The county
treasurer shall upon collection transmit to the department of
treasury within 30 days the fee added to each parcel under
subsection (1), which may be paid from the county's delinquent tax
revolving fund and shall be deposited in the land reutilization
fund created under section 78n.
(3) Property forfeited to the county treasurer under
subsection (1) may be redeemed at any time on or before the March
31 immediately succeeding the entry of a judgment foreclosing the
property under section 78k or in a contested case within 21 days of
the entry of a judgment foreclosing the property under section 78k
upon payment to the county treasurer of all of the following:
(a) The total amount of unpaid delinquent taxes, interest,
penalties, and fees for which the property was forfeited.
(b) In addition to the interest calculated under sections
60a(1) or (2) and 78a(3), additional interest computed at a
noncompounded rate of 1/2% per month or fraction of a month on the
taxes that were originally returned as delinquent, computed from
the March 1 in the year 2 years immediately preceding the
forfeiture.
(c) All recording fees and all fees for service of process or
notice.
(4) If property is redeemed by a person with a legal interest
as provided under subsection (3), any unpaid taxes not returned as
delinquent to the county treasurer under section 78a are not
extinguished.
(5) If property is redeemed by a person with a legal interest
as provided under subsection (3), the person redeeming does not
acquire a title or interest in the property greater than that
person would have had if the property had not been forfeited to the
county treasurer, but the person redeeming, other than the owner,
is entitled to a lien for the amount paid to redeem the property in
addition to any other lien or interest the person may have, which
shall be recorded within 30 days with the register of deeds by the
person entitled to the lien. The lien acquired shall have the same
priority as the existing lien, title, or interest.
(6) If property is redeemed as provided under subsection (3),
the county treasurer shall issue a redemption certificate in
quadruplicate in a form prescribed by the department of treasury.
One of the quadruplicate certificates shall be delivered to the
person making the redemption payment, 1 shall be filed in the
office of the county treasurer, 1 shall be recorded in the office
of the county register of deeds, and 1 shall be immediately
transmitted to the department of treasury if this state is the
foreclosing governmental unit. The county treasurer shall also make
a note of the redemption certificate in the tax record kept in his
or her office, with the name of the person making the final
redemption payment, the date of the payment, and the amount paid.
If the county treasurer accepts partial redemption payments, the
county treasurer shall include in the tax record kept in his or her
office the name of the person or persons making each partial
redemption payment, the date of each partial redemption payment,
the amount of each partial redemption payment, and the total amount
of all redemption payments. A certificate and the entry of the
certificate in the tax record by the county treasurer is prima
facie evidence of a redemption payment in the courts of this state.
A certificate submitted to the county register of deeds for
recording under this subsection need not be notarized and may be
authenticated by a digital signature of the county treasurer or by
other electronic means. If a redemption certificate is recorded in
error, the county treasurer shall record with the county register
of deeds a certificate of error in a form prescribed by the
department of treasury. A copy of a certificate of error recorded
under this section shall be immediately transmitted to the
department of treasury if this state is the foreclosing
governmental unit.
(7) If a foreclosing governmental unit has reason to believe
that a property forfeited under this section may be the site of
environmental contamination, the foreclosing governmental unit
shall provide the department of environmental quality with any
information in the possession of the foreclosing governmental unit
that suggests the property may be the site of environmental
contamination.