Bill Text: MI HB5571 | 2011-2012 | 96th Legislature | Introduced

---

Bill Title: Property tax; delinquent taxes; notice by publication; revise. Amends secs. 78f & 78i of 1893 PA 206 (MCL 211.78f & 211.78i) & adds sec. 78p.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-26 - Printed Bill Filed 04/26/2012 [HB5571 Detail]

Download: Michigan-2011-HB5571-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5571

 

April 25, 2012, Introduced by Rep. Bumstead and referred to the Committee on Local, Intergovernmental, and Regional Affairs.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 78f and 78i (MCL 211.78f and 211.78i), section

 

78f as amended by 2003 PA 263 and section 78i as amended by 2006 PA

 

611, and by adding section 78p.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

certified abandoned property, not later than the February 1

 

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 post 1 or more additional notices

 

on a website, including, but not limited to, a website maintained

 

by the county treasurer, and may insert 1 or more additional

 

notices in a newspaper published and notice publication 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 post on a website,

 

including, but not limited to, a website maintained by the county

 

treasurer, and may insert in a notice publication circulated in the

 

county in which the property is located, notice of 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. 78i. (1) Not later than May 1 immediately succeeding the

 

forfeiture of property to the county treasurer under section 78g,

 

the foreclosing governmental unit shall initiate a search of

 

records identified in subsection (6) to identify the owners of a

 

property interest in the property who are entitled to notice under

 

this section of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k. The foreclosing governmental

 

unit may enter into a contract with 1 or more authorized

 

representatives to perform a title search or may request from 1 or

 

more authorized representatives another title search product to

 

identify the owners of a property interest in the property as

 

required under this subsection or to perform other functions

 

required for the collection of delinquent taxes under this act.

 

     (2) After conducting the search of records under subsection

 

(1), the foreclosing governmental unit or its authorized

 

representative shall determine the address reasonably calculated to

 

apprise those owners of a property interest of the show cause

 

hearing under section 78j and the foreclosure hearing under section

 

78k and shall send notice of the show cause hearing under section

 

78j and the foreclosure hearing under section 78k to those owners,

 

and to a person entitled to notice of the return of delinquent

 

taxes under section 78a(4), by certified mail, return receipt

 

requested, not less than 30 days before the show cause hearing. If

 

after conducting the search of records under subsection (1) the

 

foreclosing governmental unit is unable to determine an address

 

reasonably calculated to inform a person with an interest in a

 

forfeited property, or if the foreclosing governmental unit

 

discovers a deficiency in notice under subsection (4), the

 

following shall be considered reasonable steps by the foreclosing

 

governmental unit or its authorized representative to ascertain the

 

address of a person entitled to notice under this section or to

 

ascertain an address necessary to correct the deficiency in notice

 

under subsection (4):

 

     (a) For an individual, a search of the records of the probate

 

court for the county in which the property is located.

 

     (b) For an individual, a search of the qualified voter file

 

established under section 509o of the Michigan election law, 1954

 

PA 116, MCL 168.509o, which is authorized by this subdivision.

 

     (c) For a partnership, a search of partnership records filed

 

with the county clerk.

 

     (d) For a business entity other than a partnership, a search

 

of business entity records filed with the department of labor and

 

economic growth.

 

     (3) The foreclosing governmental unit or its authorized

 

representative or authorized agent shall make a personal visit to

 

each parcel of property forfeited to the county treasurer under

 

section 78g to ascertain whether or not the property is occupied.

 

If the property appears to be occupied, the foreclosing

 

governmental unit or its authorized representative shall do all of

 

the following:

 

     (a) Attempt to personally serve upon a person occupying the

 

property notice of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k.

 

     (b) If a person occupying the property is personally served,

 

orally inform the occupant that the property will be foreclosed and

 

the occupants will be required to vacate unless all forfeited

 

unpaid delinquent taxes, interest, penalties, and fees are paid, of

 

the time within which all forfeited unpaid delinquent taxes,

 

interest, penalties, and fees must be paid, and of agencies or

 

other resources that may be available to assist the owner to avoid

 

loss of the property.

 

     (c) If the occupant appears to lack the ability to understand

 

the advice given, notify the department of human services or

 

provide the occupant with the names and telephone numbers of the

 

agencies that may be able to assist the occupant.

 

     (d) If the foreclosing governmental unit or its authorized

 

representative is not able to personally meet with the occupant,

 

the foreclosing governmental unit or its authorized representative

 

shall place the notice in a conspicuous manner on the property and

 

shall also place in a conspicuous manner on the property a notice

 

that explains, in plain English, that the property will be

 

foreclosed unless forfeited unpaid delinquent taxes, interest,

 

penalties, and fees are paid, the time within which forfeited

 

unpaid delinquent taxes, interest, penalties, and fees must be

 

paid, and the names, addresses, and telephone numbers of agencies

 

or other resources that may be available to assist the occupant to

 

avoid loss of the property. If this state is the foreclosing

 

governmental unit within a county, the department of treasury shall

 

perform the personal visit to each parcel of property under this

 

subsection on behalf of this state.

 

     (4) If the foreclosing governmental unit or its authorized

 

representative discovers any deficiency in the provision of notice,

 

the foreclosing governmental unit shall take reasonable steps in

 

good faith to correct that deficiency not later than 30 days before

 

the show cause hearing under section 78j, if possible.

 

     (5) If the foreclosing governmental unit or its authorized

 

representative is unable to ascertain the address reasonably

 

calculated to apprise the owners of a property interest entitled to

 

notice under this section, or is unable to notify the owner of a

 

property interest under subsection (2), the notice shall be made by

 

publication as provided in this subsection and section 78p. A

 

notice shall be published inserted for 3 2 successive weeks, once

 

each week, in a newspaper published and circulated in the county in

 

which the property is located, if there is one. If no paper is

 

published in that county, publication shall be made in a newspaper

 

published and circulated in an adjoining county notice publication

 

circulated in the county in which the property is located. This

 

publication notice shall be instead of notice under subsection (2).

 

In addition to provision of notice in a notice publication, the

 

foreclosing governmental unit may also post the notice under this

 

subsection for not less than 14 days on a website, including, but

 

not limited to, a website maintained by the foreclosing

 

governmental unit. If a notice publication is not circulated in the

 

county in which the property is located, the foreclosing

 

governmental unit shall insert the notice in a notice publication

 

circulated in an adjoining county or post the notice for not less

 

than 14 days on a website maintained by the foreclosing

 

governmental unit, or both.

 

     (6) The owner of a property interest is entitled to notice

 

under this section of the show cause hearing under section 78j and

 

the foreclosure hearing under section 78k if that owner's interest

 

was identifiable by reference to any of the following sources

 

before the date that the county treasurer records the certificate

 

required under section 78g(2):

 

     (a) Land title records in the office of the county register of

 

deeds.

 

     (b) Tax records in the office of the county treasurer.

 

     (c) Tax records in the office of the local assessor.

 

     (d) Tax records in the office of the local treasurer.

 

     (7) The notice required under subsections (2) and (3) shall

 

include all of the following:

 

     (a) The date on which the property was forfeited to the county

 

treasurer.

 

     (b) A statement that the person notified may lose his or her

 

interest in the property as a result of the foreclosure proceeding

 

under section 78k.

 

     (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 total taxes, interest, penalties, and fees due on the

 

property.

 

     (f) The date and time of the show cause hearing under section

 

78j.

 

     (g) The date and time of the hearing on the petition for

 

foreclosure under section 78k, and a statement that unless the

 

forfeited unpaid delinquent taxes, interest, penalties, and fees

 

are paid 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, the title to the

 

property shall vest absolutely in the foreclosing governmental unit

 

and that all existing interests in oil or gas in that property

 

shall be extinguished except the following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 

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

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (h) An explanation of the person's rights of redemption and

 

notice that the rights of redemption will expire 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.

 

     (8) The published notice required under subsection (5) shall

 

include all of the following:

 

     (a) A legal description or parcel number of each property.

 

     (b) The street address of each property, if available.

 

     (c) The name of any person or entity entitled to notice under

 

this section who has not been notified under subsection (2) or (3).

 

     (d) The date and time of the show cause hearing under section

 

78j.

 

     (e) The date and time of the hearing on the petition for

 

foreclosure under section 78k.

 

     (f) A statement that unless all forfeited unpaid delinquent

 

taxes, interest, penalties, and fees are paid 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, the title to the property shall vest absolutely in the

 

foreclosing governmental unit and that all existing interests in

 

oil or gas in that property shall be extinguished except the

 

following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 

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

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (g) A statement that a person with an interest in the property

 

may lose his or her interest in the property as a result of the

 

foreclosure proceeding under section 78k and that all existing

 

interests in oil or gas in that property shall be extinguished

 

except the following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 

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

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (9) The owner of a property interest who has been properly

 

served with a notice of the show cause hearing under section 78j

 

and the foreclosure hearing under section 78k and who failed to

 

redeem the property as provided under this act shall not assert any

 

of the following:

 

     (a) That notice was insufficient or inadequate on the grounds

 

that some other owner of a property interest was not also served.

 

     (b) That the redemption period provided under this act was

 

extended in any way on the grounds that some other owner of a

 

property interest was not also served.

 

     (10) The failure of the foreclosing governmental unit to

 

comply with any provision of this section shall not invalidate any

 

proceeding under this act if the owner of a property interest or a

 

person to whom a tax deed was issued is accorded the minimum due

 

process required under the state constitution of 1963 and the

 

constitution of the United States.

 

     (11) As used in this section, "authorized representative"

 

includes all of the following:

 

     (a) A title insurance company or agent licensed to conduct

 

business in this state.

 

     (b) An attorney licensed to practice law in this state.

 

     (c) A person accredited in land title search procedures by a

 

nationally recognized organization in the field of land title

 

searching.

 

     (d) A person with demonstrated experience searching land title

 

records, as determined by the foreclosing governmental unit.

 

     (12) The provisions of this section relating to notice of the

 

show cause hearing under section 78j and the foreclosure hearing

 

under section 78k are exclusive and exhaustive. Other requirements

 

relating to notice or proof of service under other law, rule, or

 

legal requirement are not applicable to notice and proof of service

 

under this section.

 

     Sec. 78p. (1) For insertion of a notice in a notice

 

publication under sections 78a to 78o, this section and sections

 

78a to 78o apply, notwithstanding any other law to the contrary.

 

     (2) A requirements for insertion of a notice publication under

 

sections 78a to 78o is satisfied by including the notice in a

 

separate insert within the notice publication.

 

     (3) As used in this section and sections 78a to 78o:

 

     (a) "Internet" means that term as defined in 47 USC 230.

 

     (b) "Newspaper" means that term as defined in section 1 of

 

1963 PA 247, MCL 691.1051.

 

     (c) "Notice publication" means a print publication for the

 

dissemination of news or other information, including, but not

 

limited to, a newspaper or legal newspaper, to which all of the

 

following apply:

 

     (i) The print publication is published and distributed in not

 

less than weekly intervals.

 

     (ii) Not less than 25% of the words in the print publication

 

are in the English language.

 

     (iii) The print publication has a bona fide list of subscribers

 

in 1 or more counties in this state or is available to the public

 

at newsstands or other retail locations in 1 or more counties in

 

this state, or both.

 

     (iv) The print publication accepts and publishes official and

 

other notices.

 

     (v) The print publication regularly contains information of a

 

public character or of interest or value to residents, property

 

owners, or the general public.

 

     (vi) The print publication has been published or distributed

 

for not less than 1 year.

 

     (d) "Website" means a collection of pages of the internet,

 

usually in HTML format, with clickable or hypertext links to enable

 

navigation from 1 page or section to another, that often uses

 

associated graphics files to provide illustration and may contain

 

other clickable or hypertext links.