Bill Text: MI HB4871 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Property tax; delinquent taxes; county fees for delinquent tax property; revise. Amends secs. 78d & 78g of 1893 PA 206 (MCL 211.78d & 211.78g).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-08-24 - Printed Bill Filed 07/27/2011 [HB4871 Detail]

Download: Michigan-2011-HB4871-Introduced.html

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HOUSE BILL No. 4871

 

July 27, 2011, Introduced by Rep. Hammel and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 78d and 78g (MCL 211.78d and 211.78g), as

 

amended by 2003 PA 263.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 78d. (1) Except as otherwise provided in section 79 for

 

certified abandoned property, on the October 1 immediately

 

succeeding the date that unpaid taxes are 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 add a $15.00 $75.00

 

fee on each parcel of property for which the delinquent taxes,

 

interest, penalties, and fees remain unpaid.

 

     (2) Except as otherwise provided in subsection (3), the county

 

treasurer shall expend the $75.00 fee added under subsection (1) to

 

implement the requirements of this act, including, but not limited

 

to, all of the following:

 

     (a) A contract with a title insurance company pursuant to

 

section 78i.

 

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

 

recording fees incurred pursuant to section 78i.

 

     (c) Costs incurred in defense of title actions, as determined

 

by the county treasurer.

 

     (d) Costs incurred in administering the foreclosure and

 

disposition of property, and maintaining property, forfeited to the

 

county treasurer for delinquent taxes under this act.

 

     (e) Foreclosure prevention activities.

 

     (3) The county treasurer may transfer all or a part of the

 

$75.00 fee added under subsection (1) to a land bank fast track

 

authority created under the land bank fast track act, 2003 PA 258,

 

MCL 124.751 to 124.774, to reimburse the land bank fast track

 

authority for services provided in administering the foreclosure

 

and disposition of property, and maintaining property, forfeited to

 

the county treasurer for delinquent taxes under this act.

 

     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 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 $75.00 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) Except as otherwise provided in subsection (3), the county

 

treasurer shall expend the $75.00 fee added under subsection (1) to

 

implement the requirements of this act, including, but not limited

 

to, all of the following:

 

     (a) A contract with a title insurance company pursuant to

 

section 78i.

 

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

 

recording fees incurred pursuant to section 78i.

 

     (c) Costs incurred in defense of title actions, as determined

 

by the county treasurer.

 

     (d) Costs incurred in administering the foreclosure and

 

disposition of property, and maintaining property, forfeited to the

 

county treasurer for delinquent taxes under this act.

 

     (e) Foreclosure prevention activities.

 

     (3) The county treasurer may transfer all or a part of the

 

$75.00 fee added under subsection (1) to a land bank fast track

 

authority created under the land bank fast track act, 2003 PA 258,

 

MCL 124.751 to 124.774, to reimburse the land bank fast track

 

authority for services provided in administering the foreclosure

 

and disposition of property, and maintaining property, forfeited to

 

the county treasurer for delinquent taxes under this act.

 

     (4) (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.

 

     (5) (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 preceding the forfeiture.

 

     (c) All recording fees and all fees for service of process or

 

notice.

 

     (6) (4) If property is redeemed by a person with a legal

 

interest as provided under subsection (3) (5), any unpaid taxes not

 

returned as delinquent to the county treasurer under section 78a

 

are not extinguished.

 

     (7) (5) If property is redeemed by a person with a legal

 

interest as provided under subsection (3) (5), 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.

 

     (8) (6) If property is redeemed as provided under subsection

 

(3) (5), 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.

 

     (9) (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.