Bill Text: MI SB0562 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Property tax; delinquent taxes; delinquent tax revolving fund; revise. Amends sec. 87b of 1893 PA 206 (MCL 211.87b).
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2014-05-27 - Assigned Pa 0126'14 With Immediate Effect [SB0562 Detail]
Download: Michigan-2013-SB0562-Engrossed.html
SB-0562, As Passed Senate, November 12, 2013
SUBSTITUTE FOR
SENATE BILL NO. 562
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 87b (MCL 211.87b), as amended by 2002 PA 198.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 87b. (1) The county board of commissioners of any county
may create a delinquent tax revolving fund that, at the option of
the county treasurer, may be designated as the "100% tax payment
fund". Upon the establishment of the fund, all delinquent taxes,
except taxes on personal property, due and payable to the taxing
units in the county, except those units that collect their own
delinquent taxes after March 1 by charter or otherwise, are due and
payable to the county. The primary obligation to pay to the county
the amount of taxes and the interest on the taxes shall rest with
the local taxing units and the state for the state education tax
under the state education tax act, 1993 PA 331, MCL 211.901 to
211.906. If the delinquent taxes that are due and payable to the
county are not received by the county for any reason, the county
has full right of recourse against the taxing unit or to the 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 interest at the rate of 1% per month or
fraction of a month until repaid to the county by the taxing unit.
However, if the county borrows to provide funds for those payments,
the interest rate shall not exceed the highest interest rate paid
on that borrowing. Any amount that is due from a local taxing unit
or the state for a prior year's uncollected delinquent tax is a
lien against any future delinquent tax payments that may be payable
to a local taxing unit or the state and the lien shall be satisfied
by offsetting the amount due to the county from the local taxing
unit or the state when distributions from the delinquent tax
revolving fund are made by the county to the local taxing unit or
the state in a subsequent year. A resolution or agreement
previously executed or adopted to this effect is validated and
confirmed. For delinquent state education taxes under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906, the county
may offset uncollectible delinquent taxes against collections of
the state education tax under the state education tax act, 1993 PA
331, MCL 211.901 to 211.906, received by the county and owed to
this state under this act. The fund shall be segregated into
separate funds or accounts for each year's delinquent taxes.
(2) If a delinquent tax revolving fund is established, the
county treasurer shall be the agent for the county and, without
further action by the county board of commissioners, may enter into
contracts
with other municipalities, this state, states, or private
persons, firms, or corporations in connection with any transaction
relating to the fund or any borrowing made by the county pursuant
to section 87c or 87d, including all services necessary to complete
this borrowing. Notwithstanding a charter provision or other law to
the contrary, the powers, duties, functions, and responsibilities
of a county treasurer under this section or as a foreclosing
governmental unit under this act may not be transferred to or by an
officer exercising the powers, duties, functions, or
responsibilities of another county office or county board. An
officer exercising the powers, duties, functions, or
responsibilities of a county office or county board other than the
county treasurer shall not issue an order restraining or
contravening the powers, duties, functions, responsibilities, or
actions of a county treasurer under this section or as a
foreclosing governmental unit under this act.
(3) The county treasurer shall pay from the fund any or all
delinquent taxes that are due and payable to the county and any
school district, intermediate school district, community college
district, city, township, special assessment district, this state,
or any other political unit for which delinquent tax payments are
due within 20 days after sufficient funds are deposited within the
delinquent tax revolving fund or, if the county treasurer is
treasurer for a county with a population greater than 1,500,000
persons, within 30 days after sufficient funds are deposited within
the delinquent tax revolving fund. In a county with a delinquent
tax revolving fund where the county does not borrow pursuant to
section 87c or 87d, if the county treasurer does not make payment
of the delinquent taxes to the local units within 10 days after the
completion of county settlement with all local units under section
55, the county shall pay interest on the unpaid delinquent taxes
from the date of actual county settlement at the rate of 12% per
annum for the number of days involved.
(4) Except as provided in subsection (5), the county treasurer
shall pay from the fund directly to a school district its share of
the fund when a single school district exists within a political
unit.
(5) If a local taxing unit has borrowed money in anticipation
of collecting taxes for any school district or other municipality
and the county treasurer has been so notified in writing, the
county treasurer shall pay to the local taxing unit the shares of
the fund for that school district or municipality. For purposes of
this subsection, "local taxing unit" means a city, village, or
township.
(6) The interest charges, penalties, and county property tax
administration fee rates established under this act shall remain in
effect and shall be payable to the county delinquent tax revolving
fund.
(7) Any surplus in the fund may be transferred to the county
general fund by appropriate action of the county board of
commissioners.
(8) A county board of commissioners may borrow money to create
a delinquent tax revolving fund as provided in section 87c or 87d,
or both.
(9) This section shall not supersede section 87 but is an
alternative method for paying delinquent taxes to local units.
However, where this section is used by a county, section 87 shall
not be used.
