Bill Text: MI HB6077 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Property tax; delinquent taxes; interest imposed on delinquent taxes in distressed communities; revise. Amends sec. 78h of 1893 PA 206 (MCL 211.78h) & adds sec. 78q.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-12-05 - Printed Bill Filed 12/05/2012 [HB6077 Detail]
Download: Michigan-2011-HB6077-Introduced.html
HOUSE BILL No. 6077
December 4, 2012, Introduced by Reps. Cavanagh and Hovey-Wright 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 section 78h (MCL 211.78h), as amended by 2001 PA 96,
and by adding section 78q.
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 include the street address of each parcel of property set
forth in the petition. The petition shall 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 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 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 household income 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 of management and 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, "household income"
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 under section
78q.
(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 be held not
more than 30 days before the March 1 immediately succeeding the
date the petition for foreclosure is filed.
Sec. 78q. (1) Notwithstanding any provision of this act or
charter to the contrary, a foreclosing governmental unit may create
a delinquent property tax installment payment plan for eligible
property located in a financially distressed community, the title
to which is held by a financially distressed person.
(2) If a financially distressed person agrees to participate
in a delinquent property tax installment payment plan created under
subsection (1), the foreclosing governmental unit may remove
eligible property the title to which is held by that financially
distressed person from the petition for foreclosure as provided in
section 78h(3)(c).
(3) If a financially distressed person successfully completes
a delinquent property tax installment payment plan created under
subsection (1), interest under section 78g(3)(b) shall be waived.
(4) If a financially distressed person does not successfully
complete a delinquent property tax installment payment plan created
under subsection (1), both of the following shall occur:
(a) Interest under section 78g(3)(b) shall apply.
(b) The eligible property shall be included in the immediately
succeeding petition for foreclosure under section 78h.
(5) As used in this section:
(a) "Eligible property" means property exempt as a principal
residence under section 7cc.
(b) "Financially distressed community" means a local tax
collecting unit that meets any 2 of the following conditions:
(i) The local tax collecting unit has sustained a decrease in
the aggregate taxable value of all real property located in that
local tax collecting unit of more than 5% in the immediately
preceding 3-year period.
(ii) More than 5% of all individual parcels of real property in
that local tax collecting unit are currently subject to proceedings
to foreclose a mortgage or land contract on that real property.
(iii) The local tax collecting unit has sustained a population
loss of more than 5% in the immediately preceding 25-year period as
determined by the most recent federal decennial census.
(c) "Financially distressed person" means a person eligible to
have property to which he or she holds title withheld from a
petition for foreclosure under section 78h(3)(b).
