Bill Text: MI HB5935 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: delinquent taxes; authority of county treasurers to forgive certain low-dollar delinquent tax balances in certain cases; provide for. Amends sec. 78h of 1893 PA 206 (MCL 211.78h).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-07-22 - Bill Electronically Reproduced 07/21/2020 [HB5935 Detail]
Download: Michigan-2019-HB5935-Introduced.html
HOUSE BILL NO. 5935
July 21, 2020, Introduced by Rep. Wittenberg
and referred to the Committee on Local Government and Municipal Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78h (MCL 211.78h), as amended by 2014 PA 499.
the people of the state of michigan enact:
Sec. 78h. (1) Not later than June 15 in each tax year,
the foreclosing governmental unit shall file a single petition with the clerk
of the circuit court of that county listing all property forfeited and not
redeemed to the county treasurer under section 78g to be foreclosed under
section 78k for the total of the forfeited unpaid delinquent taxes, interest, penalties,
and fees. If available to the foreclosing governmental unit, the petition shall must include the street address of each
parcel of property set forth in the petition. The petition shall must seek a judgment in favor of the
foreclosing governmental unit for the forfeited unpaid delinquent taxes,
interest, penalties, and fees listed against each parcel of property. The
petition shall must request that a judgment be entered
vesting absolute title to each parcel of property in the foreclosing governmental
unit, without right of redemption.
(2) If property is
redeemed after the petition for foreclosure is filed under this section, the
foreclosing governmental unit shall request that the circuit court remove that
property from the petition for foreclosure before entry of judgment foreclosing
the property under section 78k.
(3) The foreclosing
governmental unit may withhold the following property from the petition for
foreclosure filed under this section:
(a) Property the title to
which is held by minor heirs or persons who are incompetent, persons without
means of support, or persons unable to manage their affairs due to age or
infirmity, until a guardian is appointed to protect that person's rights and
interests.
(b) Property the title to
which is held by a person undergoing substantial financial hardship, as
determined under a written policy developed and adopted by the foreclosing
governmental unit. The foreclosing governmental unit shall make available to
the public the written policy adopted under this subdivision. The written
policy adopted under this subdivision shall must include,
but is not limited to, all of the following:
(i) The person requesting that the property be withheld from
the petition for foreclosure holds the title to the property.
(ii) The total
household resources of the person requesting that the property be withheld from
the petition for foreclosure meets the federal poverty income standards as
defined and determined annually by the United States office Office of management Management and budget Budget or alternative guidelines adopted by
the foreclosing governmental unit, provided that the alternative guidelines
include all persons who would otherwise meet the federal poverty income
standards under this subparagraph. As used in this subparagraph, "total
household resources" means that term as defined in section 508 of the
income tax act of 1967, 1967 PA 281, MCL 206.508.
(c) Property the title to which is held by a person subject
to a delinquent property tax installment payment plan or tax foreclosure
avoidance agreement under section 78q.
(d) Property that has continuously qualified as a principal
residence exempt from the tax levied by a local school district for school
operating purposes under section 7cc since it was returned for delinquent taxes
under section 78a, if the property, when returned for delinquent taxes under
section 78a, was subject to unpaid delinquent taxes, interest, penalties, and
fees of a de minimis amount, as determined solely in the discretion of the
foreclosing governmental unit.
(4) If a foreclosing governmental unit withholds property
from the petition for foreclosure under subsection (3), a taxing unit's lien
for taxes due or the foreclosing governmental unit's right to include the
property in a subsequent petition for foreclosure is not prejudiced.
(5) The clerk of the circuit court in which the petition is
filed shall immediately set the date, time, and place for a hearing on the
petition for foreclosure, which hearing shall must be held not more than 30 days before the
March 1 immediately succeeding the date the petition for foreclosure is filed.
