Bill Text: MI HB5262 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property tax; delinquent taxes; additional interest upon forfeiture; permit waiver under certain circumstances. Amends sec. 78g of 1893 PA 206 (MCL 211.78g).
Spectrum: Partisan Bill (Democrat 22-0)
Status: (Introduced - Dead) 2009-10-13 - Referred To Second Reading [HB5262 Detail]
Download: Michigan-2009-HB5262-Introduced.html
HOUSE BILL No. 5262
August 19, 2009, Introduced by Reps. Switalski, Byrnes, Jackson, Johnson, Stanley, Leland, Bettie Scott, Robert Jones, Liss, Gonzales, Polidori, Segal, Durhal, Haugh, Melton, Tlaib, Lipton, Geiss, Dean, Meadows, Coulouris and Nathan and referred to the Committee on Urban Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78g (MCL 211.78g), as amended by 2003 PA 263.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 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 preceding the forfeiture. The county treasurer may
waive the additional interest under this subdivision if the
property is withheld from the petition for foreclosure under
section 78h.
(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.
