Bill Text: MI HB4682 | 2009-2010 | 95th Legislature | Introduced

---

Bill Title: Property tax; delinquent taxes; foreclosure on senior citizen's or handicapped person's home for delinquent taxes; prohibit. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 70d.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-04-29 - Recommendation Concurred In [HB4682 Detail]

Download: Michigan-2009-HB4682-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4682

 

March 25, 2009, Introduced by Rep. Johnson and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

(MCL 211.1 to 211.155) by adding section 70d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 70d. (1) Property that is the principal residence of a

 

qualified person and that is otherwise subject to forfeiture under

 

section 78a shall be excluded from forfeiture as provided in this

 

section. If property that is the principal residence of a qualified

 

person is sold at the sale provided for in section 78m, it is not

 

subject to subsequent proceedings except as provided in this

 

section.

 

     (2) An owner may apply to the county treasurer to withhold the

 

property from the forfeiture provided in section 78a. The

 

application shall be made upon an affidavit verifying that the

 

applicant is the owner of the property prescribed by the department

 

of treasury and made available to county treasurers throughout the

 

state. The affidavit shall require the owner to identify any

 

mortgagee of the property. Upon receipt of an affidavit, the county

 

treasurer shall immediately forward the affidavit to the state

 

treasurer who shall examine it to determine if the owner meets the

 

requirements of this section and is a qualified person. If the

 

state treasurer notifies the county treasurer not later than the

 

Tuesday before the forfeiture that an owner is a qualified person

 

and delivers the payment required by subsection (4)(e), the county

 

treasurer shall withhold the property of the qualified person from

 

forfeiture. The state treasurer shall notify any mortgagee that an

 

owner is a qualified person under this section.

 

     (3) If property has been sold as provided in section 78m, an

 

owner may apply to the department of treasury for a determination

 

that the property is not subject to subsequent proceedings, as

 

provided in subsection (1). The application shall be made on the

 

affidavit provided for in subsection (2). Upon a finding that the

 

owner meets the requirements of this section and is a qualified

 

person and that the property is not subject to the subsequent

 

proceedings as provided in subsection (1), the department of

 

treasury shall notify the county treasurer of its finding.

 

     (4) Upon a finding that the owner meets the requirements of

 

this section, the department of treasury shall do the following:

 

     (a) On an annual basis, verify that the qualified person

 

continues to reside in the property and continues to be a qualified

 

person.

 

     (b) Secure an assignment to the state of the next homestead

 

property tax credit and any subsequent credit payable during the

 

period in which taxes are deferred on the property and necessary to

 

pay any lien on the property under this section.

 

     (c) Secure an assignment to this state of any income tax

 

refund payable to the qualified person under the income tax act of

 

1967, 1967 PA 281, MCL 206.1 to 206.532, during the period in which

 

taxes are deferred on the property and necessary to pay any lien on

 

the property under this section.

 

     (d) Secure an assignment to this state of the proceeds of the

 

qualified person's interest in any property and casualty insurance

 

on the property sufficient to pay the amount of the lien on the

 

property. If the qualified person does not pay for sufficient

 

property and casualty insurance, this state shall pay for it and

 

add that amount to the lien on the property.

 

     (e) Deliver to the county treasurer in the county in which the

 

property is located an amount equal to the amount of taxes,

 

interest, and penalties that would otherwise be collected.

 

     (5) If the department of treasury makes a determination that

 

an owner meets the requirements of this section and the property of

 

the owner has been conveyed to the foreclosing governmental unit or

 

the city, village, or township in which the property is located by

 

a deed issued under section 78m, the state treasurer shall issue a

 

certificate canceling the deed and record the certificate with the

 

register of deeds in the county in which the property is located.

 

Taxes and special assessments that otherwise would be canceled

 

under section 78k shall not be canceled and the property shall not

 

be canceled or omitted from the tax roll. However, if the property

 

has been removed from a previous tax roll, it may be placed on the

 

roll in the manner provided in section 154.

 

     (6) Taxes on property that has been withheld from forfeiture

 

under subsection (2), or taxes on property for which a sale has

 

occurred and for which a determination is made that the owner is a

 

qualified person under subsection (3) shall be deferred until the

 

owner is no longer a qualified person; until 1 year after the

 

owner's death, subject to further order by the court; or until any

 

part of the principal residence is conveyed or transferred to

 

another person or the owner enters into a contract to sell the

 

principal residence. The death of a spouse does not terminate the

 

deferment of taxes on the principal residence owned by the husband

 

and wife unless the surviving spouse remarries. Failure to provide

 

the assignment required by subsection (4)(b) or (c) terminates the

 

deferment. The deferred taxes may be paid in full before the

 

termination of the deferment at any time. Taxes are deferred under

 

this section without further penalty and bear interest at the rate

 

of 3/4 of 1% per month or fraction of a month. The department of

 

treasury shall notify each owner whose taxes are deferred that if

 

legal or equitable title to the principal residence or any part of

 

the principal residence is conveyed or transferred, or if the owner

 

enters into a contract to sell the principal residence, the

 

deferment is terminated and the amount deferred is immediately due

 

and payable with interest as provided in this section, but without

 

penalty.

 

     (7) Property shall not be excluded from forfeiture under

 

section 78a for nonpayment of taxes and a deferment shall not be

 

granted in a year in which, with the inclusion of additional

 

deferred taxes, the total amount of taxes deferred exceeds 80% of

 

the owner's equity in the property. In making this determination,

 

the department of treasury shall use a market value equal to the

 

state equalized valuation multiplied by 2.

 

     (8) Taxes deferred in a county for any year shall not exceed

 

2% of the real property taxes returned as delinquent for that year

 

by all taxing units in that county.

 

     (9) Upon termination of the deferment of property taxes under

 

this section, the procedures of this act for the collection and

 

enforcement of tax liens suspended by the terms of this section

 

again apply to the deferred taxes in the same manner they would

 

have applied if a deferment had not been authorized and if all of

 

the taxes had been levied in the second year preceding the calendar

 

year in which the deferment was terminated. However, the provisions

 

of this act with respect to fees, interest, and penalties, except

 

as provided in this section, do not apply to the period during

 

which the taxes are deferred.

 

     (10) Taxes deferred under this section are a lien against the

 

property and take precedence over other liens against the property

 

to the same extent as if the taxes were not deferred.

 

     (11) A purchase under section 78m is subject to the provisions

 

of this section and the purchaser is conclusively presumed to know

 

without notice that such a purchase is made subject to the

 

provisions of this section. However, if taxes are deferred under

 

this section the purchaser may redeem the tax sale certificate or

 

tax deed from the foreclosing governmental unit for the purchase

 

price.

 

     (12) As used in this section:

 

     (a) "Homestead property tax credit" means the credit provided

 

under sections 520 and 522 of the income tax act of 1967, 1967 PA

 

281, MCL 206.520 and 206.522.

 

     (b) "Household income" means that term as defined in section

 

508 of the income tax act of 1967, 1967 PA 281, MCL 206.508.

 

     (c) "Principal residence" means that term as defined in

 

section 7dd.

 

     (d) "Qualified person" means a senior citizen with a household

 

income in the immediately preceding calendar year that is less than

 

187.5% of the federal poverty guidelines published annually in the

 

federal register by the United States department of health and

 

human services, under its authority to revise the poverty line

 

under 42 USC 9902, for 2 persons or the number of persons in the

 

household, whichever is greater, or an adult in need of protective

 

services as that term is defined in section 11 of the social

 

welfare act, 1939 PA 280, MCL 400.11, who has applied for and

 

assigned all homestead property tax credits that may be claimed

 

during the period in which taxes are deferred.

 

     (e) "Senior citizen" means a person who is 65 years of age or

 

older and includes the unremarried surviving spouse of a person who

 

was 65 years of age or older at the time of death.