Bill Text: MI HB5810 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Property tax; payment and collection; summer 2020 property taxes; extend payment deadline and provide for early return for delinquency. Amends sec. 78a of 1893 PA 206 (MCL 211.78a) & adds sec. 44e. TIE BAR WITH: HB 5761'20
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2020-07-21 - Re-referred To Committee On Appropriations [HB5810 Detail]
Download: Michigan-2019-HB5810-Engrossed.html
SENATE Substitute For
HOUSE BILL NO. 5810
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 44f.
The people of the state of michigan enact:
Sec. 44f. (1) There is created in the
department of treasury a summer 2020 property tax advance payment program, to
be administered by the department, under which each county in this state shall
provide eligible taxing authorities that have levied summer 2020 property taxes
on property located in the county with advance payment of those summer 2020
property taxes that are due and payable on property for which the collection of
those taxes has been deferred under section 44e. All of the following apply to
this program:
(a)
To be eligible for receipt of an advance payment, a taxing authority must levy
a summer 2020 property tax on property located in a local tax collecting unit that
submits an application for that payment to the county's treasurer in a form and
manner prescribed by the department of treasury by not later than September 11,
2020. The application must be accompanied by copies of all
deferment-application statements and affidavits properly submitted to the local
tax collecting unit pursuant to section 44e(2)(b) and the associated summer
2020 property tax bills for those applications.
(b)
Based on applications properly submitted to the county treasurer under
subdivision (a), the county shall do 1 of the following:
(i) Arrange for the financing of the
payment described in subdivision (d) from any source available to the county,
including, but not limited to, a delinquent tax revolving fund established by
the county under this act for payment of summer 2020 property taxes returned as
delinquent under section 78a.
(ii) By not later than September 18,
2020, submit to the department of treasury an application for short-term state
financing described in subdivision (c) for the payment described in subdivision
(d). The application must be submitted in a form and manner prescribed by the
department of treasury and must include, in addition to any other information
the department considers necessary, information sufficient to determine, by
parcel identification number, each parcel of property in the county for which
advance payment of deferred summer 2020 property taxes is sought, the total amount
of the payments sought for each parcel, an itemization of that total amount into
individual amounts to be paid to each eligible taxing authority, and the total
amount sought for all parcels in the county.
(c)
For those counties proceeding under subdivision (b)(ii), by not later than November 13,
2020, the department of treasury shall provide short-term state financing for
advance payments to be made by each county to eligible taxing authorities that
levied summer 2020 property taxes on property in the county, to the extent
those payments are supported by documentation required under subdivisions (a) and
(b). Funds necessary to support the short-term state financing under this
subdivision may be obtained from any appropriate source, including, but not
limited to, notes or bonds issued by the Michigan finance authority created by
Executive Reorganization Order No. 2010-2, MCL 12.194.
(d)
Whether a county proceeds under subdivision (b)(i) or (ii), the county shall, by not later than
December 1, 2020, make advance payments to eligible taxing authorities that
levied summer 2020 property taxes on property located in the county for the
full amount of those summer 2020 property taxes that were properly deferred
under section 44e.
(e)
The short-term state financing described in subdivision (c) is an interest-free
loan provided to a county that proceeds under subdivision (b)(ii). The county shall repay this state the
full amount of the loan from any source available to the county, including, but
not limited to, a delinquent tax revolving fund established by the county under
this act for payment of summer 2020 property taxes returned as delinquent under
section 78a, by not later than the earlier of the following dates:
(i) The date that section 87b(3) would
have required payment of delinquent summer 2020 property taxes from the
county's delinquent tax revolving fund to the various taxing authorities had
there been no advance payment of those taxes to those taxing authorities pursuant
to the advance payment program under this section.
(ii) June 1, 2021.
(2)
If a local tax collecting unit subsequently receives payment of summer 2020
property taxes for which an advance payment was provided under subsection
(1)(d), the local tax collecting unit shall transmit that payment to the
county.
(3)
A county's advance payment of deferred summer 2020 property taxes under
subsection (1)(d) is not made on behalf of the property's owner and those taxes
remain due and payable from the property's owner, and unless those taxes have
been paid by or on behalf of the property's owner by not later than the last
day that summer 2020 property taxes are due and payable before being returned
as delinquent to the county treasurer under section 78a, the local tax
collecting unit in which the property is located shall return those taxes as
delinquent to the county treasurer under section 78a and the property will be
subject to forfeiture, foreclosure, and sale for the enforcement and collection
of those delinquent taxes as provided in sections 78 to 79a. Upon the return of
those delinquent taxes, the primary obligation to pay to the county the amount
of those delinquent taxes and any interest due on those delinquent taxes rests
with the local taxing authorities and this state for the state education tax
under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, as
provided in section 87b, and if those delinquent taxes are not received by the
county on behalf of the local taxing authorities and this state for any reason,
the county has full right of recourse against the local taxing authorities or
this state for the state education tax under the state education tax act, 1993
PA 331, MCL 211.901 to 211.906, to recover the amount of the delinquent taxes
and any interest due on those delinquent taxes, as also provided in section
87b.
(4)
As used in this section:
(a)
"Eligible taxing authority" means any state or local governmental
entity that is authorized to levy a summer 2020 property tax collected under
this act by a local tax collecting unit that meets both of the following:
(i) Has deferred the collection of those
summer 2020 property taxes based on deferment-application statements and
affidavits properly filed under section 44e(2)(b).
(ii) Has properly submitted the
application described in subsection (1)(a).
(b)
"Summer 2020 property tax" means that term as defined in section 44e.
Enacting section 1. This amendatory act does not take effect unless House Bill No. 5761 of the 100th Legislature is enacted into law.