Bill Text: MI SB0933 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: delinquent taxes; foreclosure and sale proceedings; modify. Amends secs. 7u, 78k & 78m of 1893 PA 206 (MCL 211.7u et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-05-20 - Referred To Committee On Local Government [SB0933 Detail]
Download: Michigan-2019-SB0933-Introduced.html
SENATE BILL NO. 933
May 20, 2020, Introduced by Senator MACGREGOR
and referred to the Committee on Local Government.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7u, 78k, and 78m (MCL 211.7u, 211.78k, and 211.78m), section 7u as amended by 2012 PA 135, section 78k as amended by 2020 PA 33, and section 78m as amended by 2014 PA 501.
the people of the state of michigan enact:
Sec. 7u. (1) The principal residence of persons a person who, in the judgment of the
supervisor and board of review, by reason of poverty, are is unable
to contribute toward the public charges is eligible for exemption in whole or
in part from taxation the collection of taxes under this act.
This section does not apply to the property of a corporation.
(2) To be eligible for
exemption under this section, a person shall do all of the following on an
annual basis:
(a) Be an owner of and
occupy as a principal residence the property for which an exemption is
requested.
(b) File a claim with the
supervisor or board of review on a form prescribed by the state tax commission and provided
by the local assessing unit, accompanied by federal and state income tax returns
for all persons residing in the principal residence, including any property tax
credit returns, filed in the immediately preceding year or in the current year.
Federal and state income tax returns are not required for a person residing in
the principal residence if that person was not required to file a federal or
state income tax return in the tax year in which the exemption under this
section is claimed or in the immediately preceding tax year. If a person was
not required to file a federal or state income tax return in the tax year in
which the exemption under this section is claimed or in the immediately
preceding tax year, an affidavit in a form prescribed by the state tax
commission may be accepted in place of the federal or state income tax return.
The filing of a claim under this subsection constitutes an appearance before
the board of review for the purpose of preserving the claimant's right to
appeal the decision of the board of review regarding the claim.
(c) Produce a valid driver's driver license or other form of
identification if requested by the supervisor or board of review.
(d) Produce a deed, land
contract, or other evidence of ownership of the property for which an exemption
is requested if required by the supervisor or board of review.
(e) Meet the federal
poverty guidelines updated published annually in the federal register Federal Register by the United States department Department of health Health and
human services Human Services under its authority of section 673 of subtitle B of title VI of the omnibus budget
reconciliation act of 1981, Public Law 97-35, to revise the poverty line under 42 USC
9902, or alternative guidelines adopted by the governing body of the local
assessing unit provided the alternative guidelines do not provide income
eligibility requirements less than the federal guidelines.
(3) The application for
an exemption under this section shall must be
filed after January 1 but before the day prior to the last day of the board of
review.
(4) The governing body of
the local assessing unit shall determine and make available to the public and the treasurer of the county in which the local
assessing unit is located the policy and guidelines the local
assessing unit uses for the granting of exemptions under this section. The
guidelines shall must include but not be limited to the specific income and asset levels of the claimant and
total household income and assets. If the local assessing unit maintains a website, the local
assessing unit shall make the policy and guidelines, and the form described in
subsection (2)(b), available to the public on the website.
(5) The board of review
shall follow the policy and guidelines of the local assessing unit in granting
or denying an exemption under this section unless the board of review
determines there are substantial and compelling reasons why there should be a
deviation from the policy and guidelines and the substantial and compelling
reasons are communicated in writing to the claimant. The board of review may grant an exemption under this section for
either or both of the following years in which the person claiming the
exemption is or was qualified under the eligibility requirements in subsection
(2):
(a)
The current tax year.
(b)
The immediately preceding tax year.
(6) A person who files a
claim under this section is not prohibited from also appealing the assessment
on the property for which that claim is made before the board of review in the
same year.
(7) As used in this
section, "principal residence" means principal residence or qualified
agricultural property as those terms are defined in section 7dd.
Sec. 78k. (1) If a petition for foreclosure is filed
under section 78h, not later than the date of the hearing, the foreclosing
governmental unit shall file with the clerk of the circuit court proof of
service of the notice of the show cause hearing under section 78j, proof of
service of the notice of the foreclosure hearing under this section, and proof
of the any personal visit to the property, any posting of notice on the property,
and publication under section 78i.
(2) A person claiming an
interest in a parcel of property set forth included in the petition for foreclosure as amended may contest the validity or
correctness of the forfeited unpaid delinquent taxes, interest, penalties, and
fees for 1 or more of the following reasons:
(a) No law authorizes the tax.The tax was not authorized by law.
(b) The person appointed to decide
whether a tax will be levied under a law of this state acted without
jurisdiction, or did not impose the tax in question.The tax was not levied in the manner required by law.
(c) The For a tax that is not a special assessment, the property
was exempt from the tax in
question, or the tax was not legally levied.taxation.
(d) The tax has been was paid within the time limited provided by law for payment or
redemption.
(e) The tax was assessed
fraudulently.
(f) The description of
the property used in the assessment or levy was so indefinite or erroneous that the
forfeiture was void.
(3) A person claiming an
interest in a parcel of property set forth included in the petition for foreclosure who desires to contest as amended objecting to that petition pursuant to subsection (2) shall file
written objections with the clerk of the circuit court and serve those
objections on the foreclosing governmental unit before the date of the hearing
required under this section.
(4) If the court
determines that the owner of property subject to foreclosure is a minor heir,
is incompetent, is without means of support, or is undergoing a substantial
financial hardship, the court may withhold that property from foreclosure for 1
year or may enter an order extending the redemption period as the court
determines to be equitable. If
the court withholds property from foreclosure under this subsection, a taxing unit's lien
for taxes due is not prejudiced and that property must be included in the
immediately succeeding year's tax foreclosure proceeding.
(5) The circuit court
shall enter final judgment on a petition for foreclosure as amended filed under section 78h at any time after
the hearing under this section but not later than the March 30 immediately
succeeding the hearing with the judgment effective on the March 31 immediately
succeeding the hearing for uncontested cases or 10 days after the conclusion of
the hearing for contested cases. All redemption rights to the property expire
on the March 31 immediately succeeding the entry of a judgment foreclosing the
property under this section, or in a contested case 21 days after the entry of
a judgment foreclosing the property under this section. The circuit court's
judgment must specify all of the following:
(a) The legal description
and, if known, the street address of the property foreclosed and the forfeited
unpaid delinquent taxes, interest, penalties, and fees due on each parcel of
property.
(b) That fee simple title
to property foreclosed by the judgment will vest absolutely in the foreclosing
governmental unit, except as otherwise provided in subdivisions (c) and (e),
without any further rights of redemption, if all forfeited delinquent taxes,
interest, penalties, and fees, which delinquent taxes, interest, penalties, and
fees may be reduced by the foreclosing governmental unit in accordance with section
78g(8), are not paid on or before the March 31 immediately succeeding the entry
of a judgment foreclosing the property under this section, or in a contested
case within 21 days of the entry of a judgment foreclosing the property under
this section.
(c) That all liens
against the property, including any lien for unpaid taxes or special
assessments, except future installments of special assessments and liens
recorded by this state or the foreclosing governmental unit under the natural
resources and environmental protection act, 1994 PA 451, MCL 324.101 to
324.90106, are extinguished, if all forfeited delinquent taxes, interest,
penalties, and fees are not paid on or before the March 31 immediately
succeeding the entry of a judgment foreclosing the property under this section,
or in a contested case within 21 days of the entry of a judgment foreclosing
the property under this section.
(d) That, except as
otherwise provided in subdivisions (c) and (e), the foreclosing governmental
unit has good and marketable fee simple title to the property, if all forfeited
delinquent taxes, interest, penalties, and fees are not paid on or before the
March 31 immediately succeeding the entry of a judgment foreclosing the
property under this section, or in a contested case within 21 days of the entry
of a judgment foreclosing the property under this section.
(e) That all existing
recorded and unrecorded interests in that property are extinguished, except a
visible or recorded easement or right-of-way, private deed restrictions,
interests of a lessee or an assignee of an interest of a lessee under a
recorded oil or gas lease, interests in oil or gas in that property that are
owned by a person other than the owner of the surface that have been preserved
as provided in section 1(3) of 1963 PA 42, MCL 554.291, interests in property
assessable as personal property under section 8(g), or restrictions or other
governmental interests imposed under the natural resources and environmental
protection act, 1994 PA 451, MCL 324.101 to 324.90106, if all forfeited
delinquent taxes, interest, penalties, and fees are not paid on or before the
March 31 immediately succeeding the entry of a judgment foreclosing the
property under this section, or in a contested case within 21 days of the entry
of a judgment foreclosing the property under this section.
(f) A finding that all
persons entitled to notice and an opportunity to be heard have been provided
that notice and opportunity. A person is considered to have been provided
notice and an opportunity to be heard if the foreclosing governmental unit
followed the procedures for provision of notice by mail, for visits to
forfeited property, for any required
posting on forfeited property, and for publication under section
78i, or if 1 or more of the following apply:
(i) The person had constructive notice of the hearing under
this section by acquiring an interest in the property after the date the notice
of forfeiture is recorded under section 78g.
(ii) The person
appeared at the hearing under this section or filed written objections with the
clerk of the circuit court under subsection (3) before the hearing.
(iii) Before the
hearing under this section, the person had actual notice of the hearing.
(g) A judgment entered under this section is a final order with
respect to the property affected by the judgment and except as provided in
subsection (7) or subsections
(9) to (11) must not be modified, stayed, or held invalid after
the March 31 immediately
succeeding the entry of a judgment foreclosing the property under this section,
or for contested cases 21 days after the entry of a judgment foreclosing the
property under this section.property is sold by the foreclosing governmental unit at a
sale under section 78m or otherwise transferred by the foreclosing governmental
unit under section 78m.
(6) Except as otherwise provided in subsection (5)(c) and
(e), fee simple title to property set forth included in a petition for foreclosure as amended filed under
section 78h on which forfeited delinquent taxes, interest, penalties, and fees
are not paid on or before the March 31 immediately succeeding the entry of a
judgment foreclosing the property under this section, or in a contested case
within 21 days of the entry of a judgment foreclosing the property under this
section, will vest vests absolutely in the
foreclosing governmental unit, and the foreclosing governmental unit will have has absolute title to
the property, including all interests in oil or gas in that property except 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, and interests preserved as provided in section
1(3) of 1963 PA 42, MCL 554.291. The foreclosing governmental unit's title is
not subject to any recorded or unrecorded lien and must not be stayed, affected, or held
invalid except as provided in subsection (7) or subsections (9) to (11).
(7) The foreclosing governmental unit or a person claiming to
have a property interest under section 78i in property foreclosed under this
section may appeal the circuit court's order or the circuit court's judgment
foreclosing property to the court of appeals. An appeal under this subsection
is limited to the record of the proceedings in the circuit court under this
section and is
not de novo. The circuit court's judgment foreclosing property must be stayed
until the court of appeals has reversed, modified, or affirmed that judgment.
If an appeal under this subsection stays the circuit court's judgment
foreclosing property, the circuit court's judgment is stayed only as to the
property that is the subject of that appeal and the circuit court's judgment
foreclosing other property that is not the subject of that appeal is not
stayed. To appeal the circuit court's judgment foreclosing property, a person
appealing the judgment shall pay to the county treasurer the amount determined
to be due to the county treasurer under the judgment on or before the March 31
immediately succeeding the entry of a judgment foreclosing the property under
this section, or in a contested case within 21 days of the entry of a judgment
foreclosing the property under this section, together with a notice of appeal. If the circuit court's judgment
foreclosing the property is affirmed on appeal, the amount determined to be due
must be refunded to the person who appealed the judgment. If the
circuit court's judgment foreclosing the property is reversed or modified on
appeal, the county treasurer shall refund the amount determined to be due to
the person who appealed the judgment, if any, and retain the balance in
accordance with the order of the court of appeals.
(8) The foreclosing governmental unit shall record a notice
of judgment for each parcel of foreclosed property in the office of the
register of deeds for the county in which the foreclosed property is located in
a form prescribed by the department of treasury.
(9) If a property affected by the judgment has not been sold
by the foreclosing governmental unit at a sale under section 78m or otherwise
transferred by the foreclosing governmental unit under section 78m, a person
claiming an interest in the property may file a motion in the circuit court
proceeding seeking relief from the judgment based on any of the grounds
described in MCR 2.612(C). An order providing relief under this subsection must
require payment of both of the following to the foreclosing governmental unit
within 10 days after the date the order is issued:
(a) The minimum bid for the property as calculated by the
foreclosing governmental unit under section 78m.
(b) Any additional costs incurred by the foreclosing
governmental unit and attributable to the property by the foreclosing
governmental unit under section 78m(8).
(10) An order under subsection (9) must provide that the
order is void if payment required by the order is not made within the time
provided by the order. The right to seek relief under subsection (9) is not an
assignable right.
(11) (9) After the entry of a judgment foreclosing the
property under this section, if the property has not been transferred under
section 78m to a person other than the foreclosing governmental unit, a
foreclosing governmental unit may cancel the foreclosure by recording with the
register of deeds for the county in which the property is located a certificate
of error in a form prescribed by the department of treasury, if the foreclosing
governmental unit discovers any of the following:
(a) The foreclosed property was not subject to taxation on
the date of the assessment of the unpaid taxes for which the property was
foreclosed.
(b) The description of the property used in the assessment of
the unpaid taxes for which the property was foreclosed was so indefinite or
erroneous that the forfeiture of the property was void.
(c) The taxes for which the property was foreclosed had been
paid to the proper officer within the time provided under this act for the
payment of the taxes or the redemption of the property.
(d) A certificate, including a certificate issued under
section 135, or other written verification authorized by law was issued by the
proper officer within the time provided under this act for the payment of the
taxes for which the property was foreclosed or for the redemption of the
property.
(e) An owner of an interest in the property entitled to
notice under section 78i was not provided notice sufficient to satisfy the
minimum requirements of due process required under the state constitution of
1963 and the Constitution of the United States.
(f) A judgment of foreclosure was entered under this section
in violation of an order issued by a United States Bankruptcy Court.
(12) (10) A certificate of error submitted to the county
register of deeds for recording under subsection (9) need not be notarized and
may be authenticated by a digital signature of the foreclosing governmental
unit or by other electronic means.
(13) As used in this section, "sold" means a bid
for a property at an auction sale under section 78m(2) that was accepted by the
foreclosing governmental unit.
Sec. 78m. (1) Not later than the first Tuesday in July , immediately succeeding the entry of judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit, this state is granted may exercise the right of first refusal to purchase property at the greater of the minimum bid or its fair market value by paying that amount to the foreclosing governmental unit if the foreclosing governmental unit is not this state. If this state elects not to purchase the property under its right of first refusal, a city, village, or township may purchase for a public purpose any property located within that city, village, or township set forth included in the judgment and subject to sale under this section by payment to paying the foreclosing governmental unit of the minimum bid. If a city, village, or township does not purchase that property, the county in which that property is located may purchase that property under this section by payment to paying the foreclosing governmental unit of the minimum bid. If property is purchased by a city, village, township, or county under this subsection, the foreclosing governmental unit shall convey the property to the purchasing city, village, township, or county within 30 days. If property purchased by a city, village, township, or county under this subsection is subsequently sold for an amount in excess of the minimum bid and all costs incurred relating to demolition, renovation, improvements, or infrastructure development, the excess amount shall must be returned to the delinquent tax property sales proceeds account for the year in which the property was purchased by the city, village, township, or county or, if this state is the foreclosing governmental unit within a county, to the land reutilization fund created under section 78n. Upon the request of the foreclosing governmental unit, a city, village, township, or county that purchased property under this subsection shall provide to the foreclosing governmental unit without cost information regarding any subsequent sale or transfer of the property. This subsection applies to the purchase of property by this state, a city, village, or township, or a county prior to before a sale held under subsection (2).
(2) Subject to subsection (1), beginning on the third Tuesday in July immediately succeeding the entry of the judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit and ending on the immediately succeeding first Tuesday in November, the foreclosing governmental unit, or its authorized agent, at the option of the foreclosing governmental unit, shall hold 1 or more property sales at 1 or more convenient locations at which property foreclosed by the judgment entered under section 78k shall will be sold by auction sale, which may include an auction sale conducted via an internet website. Notice of the time and location of a sale shall must be published not less than 30 days before a sale 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 shall must be made in a newspaper published and circulated in an adjoining county. Each sale shall must be completed before the first Tuesday in November immediately succeeding the entry of judgment under section 78k vesting absolute title to the tax delinquent property in the foreclosing governmental unit. Except as provided in this subsection and subsection (5), property shall must be sold to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid. The foreclosing governmental unit may sell parcels individually or may offer 2 or more parcels for sale as a group. The minimum bid for a group of parcels shall must equal the sum of the minimum bid for each parcel included in the group. The foreclosing governmental unit may adopt procedures governing the conduct of the sale and the conveyance of parcels under this section and may cancel the sale prior to before the issuance of a deed under this subsection if authorized under the procedures. The foreclosing governmental unit may impose terms of sale that the foreclosing governmental unit determines necessary for the protection of public health, safety, or welfare. The foreclosing governmental unit shall require full payment at the close of each day's bidding or by a date not more than 21 days after the sale. Before the foreclosing governmental unit conveys a parcel sold at a sale, the purchaser shall provide the foreclosing governmental unit with proof of payment to the local tax collecting unit in which the property is located of any property taxes owed on the parcel at the time of the sale. A foreclosing governmental unit shall cancel a sale if unpaid property taxes owed on a parcel or parcels at the time of a sale are not paid within 21 days of the sale. If a sale is canceled under this subsection, the foreclosing governmental unit may offer the property to the next highest bidder and convey the property to that bidder under this subsection, subject to the requirements of this subsection for the highest bidder. Not more than 14 days after payment to the foreclosing governmental unit of all amounts required by the highest bidder or the next highest bidder under this subsection, the foreclosing governmental unit shall convey the property by deed to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid, or the next highest bidder if the sale to the highest bidder is canceled and the next highest bidder pays the amount required under this section to purchase the property. The deed shall must vest fee simple title to the property in the person bidding the highest amount above the minimum bid, unless the foreclosing governmental unit discovers a defect in the foreclosure of the property under sections 78 to 78l or the sale is canceled under this subsection or subsection (5). If this state is the foreclosing governmental unit within a county, the department of treasury shall be responsible for conducting the sale of property under this subsection and subsections (4) and (5) on behalf of this state. Before issuing a deed to a person purchasing property under this subsection or subsection (5), the foreclosing governmental unit shall require the person to execute and file with the foreclosing governmental unit an affidavit under penalty of perjury. If the person fails to execute and file the affidavit required by this subsection by the date payment for the property is required under this section, the foreclosing governmental unit shall cancel the sale. An affidavit under this section shall must indicate that the person meets all of the following conditions:
(a) The person does not directly or indirectly hold more than a de minimis legal interest in any property with delinquent property taxes located in the same county as the property.
(b) The person is not directly or indirectly responsible for any unpaid civil fines for a violation of an ordinance authorized by section 4l of the home rule city act, 1909 PA 279, MCL 117.4l, in the local tax collection unit in which the property is located.
(3) For sales held under subsection (2), after the conclusion of that sale, and prior to before any additional sale held under subsection (2), a city, village, or township may purchase any property not previously sold under subsection (1) or (2) by paying the minimum bid to the foreclosing governmental unit. If a city, village, or township does not purchase that property, the county in which that property is located may purchase that property under this section by payment to the foreclosing governmental unit of the minimum bid.
(4) If property is purchased by a city, village, township, or county under subsection (3), the foreclosing governmental unit shall convey the property to the purchasing city, village, township, or county within 30 days.
(5) All property subject to sale under subsection (2) shall must be offered for sale at 1 or more sales conducted as required by subsection (2). If the foreclosing governmental unit elects to hold more than 1 sale under subsection (2), the final sale held under subsection (2) shall must be held not less than 28 days after the immediately preceding sale under subsection (2). At the final sale held under subsection (2), the sale is subject to the requirements of subsection (2), except that the minimum bid shall is not be required. However, the foreclosing governmental unit may establish a reasonable opening bid at the sale to recover the cost of the sale of the parcel or parcels, and the foreclosing governmental unit shall require a person who held an interest in property sold under this subsection at the time a judgment of foreclosure was entered against the property under section 78k to pay the minimum bid for the property before issuing a deed to the person under subsection (2). If the person fails to pay the minimum bid for the property and other amounts by the date required under this section, the foreclosing governmental unit shall cancel the sale of the property.
(6) On or before December 1 immediately succeeding the entry of judgment under section 78k, a list of all property not previously sold by the foreclosing governmental unit under this section shall must be transferred to the clerk of the city, village, or township in which the property is located. The city, village, or township may object in writing to the transfer of 1 or more parcels of property set forth on that list. On or before December 30 immediately succeeding the entry of judgment under section 78k, all property not previously sold by the foreclosing governmental unit under this section shall must be transferred to the city, village, or township in which the property is located, except those parcels of property to which the city, village, or township has objected. Property located in both a village and a township may be transferred under this subsection only to a village. The city, village, or township may make the property available under the urban homestead act, 1999 PA 127, MCL 125.2701 to 125.2709, or for any other lawful purpose.
(7) If property not previously sold is not transferred to the city, village, or township in which the property is located under subsection (6), the foreclosing governmental unit shall retain possession of that property. If the foreclosing governmental unit retains possession of the property and the foreclosing governmental unit is this state, title to the property shall must vest in the land bank fast track authority created under section 15 of the land bank fast track act, 2003 PA 258, MCL 124.765.
(8) A foreclosing governmental unit shall deposit the proceeds from the sale of property under this section into a restricted account designated as the "delinquent tax property sales proceeds for the year ______". The foreclosing governmental unit shall direct the investment of the account. The foreclosing governmental unit shall credit to the account interest and earnings from account investments. Proceeds The foreclosing governmental unit shall use proceeds in that account shall only be used by the foreclosing governmental unit for the following purposes in the following order of priority:
(a) The delinquent tax revolving fund shall must be reimbursed for all taxes, interest, penalties, and fees on all of the property. , whether or not all of the property was sold.
(b) All costs of incurred by the foreclosing governmental unit relating to the sale of property for the year shall must be paid.
(c) Any costs of the foreclosure proceedings for the year, including, but not limited to, costs of mailing, publication, personal service, legal fees and expenses, personnel, and outside contractors shall must be paid.
(d) Any costs for the sale of property or foreclosure proceedings for any prior year that have not been paid or reimbursed from that prior year's delinquent tax property sales proceeds shall must be paid.
(e) Any costs incurred by the foreclosing governmental unit in maintaining, repairing, or remediating property foreclosed under section 78k before the sale under this section shall must be paid, including costs of any maintenance, repair, and environmental remediation.
(f) If the foreclosing governmental unit is not this state, any of the following:
(i) Any costs for the sale of property or foreclosure proceedings for any subsequent year that are not paid or reimbursed from that subsequent year's delinquent tax property sales proceeds shall must be paid from any remaining balance in any prior year's delinquent tax property sales proceeds account.
(ii) Any costs for the defense of title actions and other legal challenges to the foreclosure.
(iii) Any costs incurred in administering the foreclosure and disposition of property forfeited for delinquent taxes under this act.
(g) If the foreclosing governmental unit is this state, any remaining balance shall must be transferred to the land reutilization fund created under section 78n.
(h) In 2008 and each year after 2008, if the foreclosing governmental unit is not this state, not later than June September 30 of the second calendar year after foreclosure, the foreclosing governmental unit shall submit a written report to its board of commissioners identifying any remaining balance and any contingent costs of title or other legal claims described in subdivisions (a) through (f), as determined by the foreclosing governmental unit. All In 2008 and each year after 2008 and before 2021, all or a portion of any remaining balance, less any contingent costs of title or other legal claims described in subdivisions (a) through (f), may subsequently be transferred into the general fund of the county by the board of commissioners.
(9) Two or more county treasurers of adjacent counties may elect to hold a joint sale of property as provided in this section. If 2 or more county treasurers elect to hold a joint sale, property may be sold under this section at a location outside of the county in which the property is located. The sale may be conducted by any county treasurer participating in the joint sale. A joint sale held under this subsection may include or be an auction sale conducted via an internet website.
(10) The foreclosing governmental unit shall record a deed for any property transferred under this section with the county register of deeds. The foreclosing governmental unit may charge a fee in excess of the minimum bid and any sale proceeds for the cost of recording a deed under this subsection.
(11) For property transferred to this state under subsection (1), a city, village, or township under subsection (6) or retained by a foreclosing governmental unit under subsection (7), all taxes due on the property as of the December 31 following the transfer or retention of the property are canceled effective on that December 31.
(12) For property sold, transferred, or retained under this section, transferred to this state under subsection (1), a city, village, or township under subsection (6), or retained by a foreclosing governmental unit under subsection (7), all liens for costs of demolition, safety repairs, debris removal, or sewer or water charges due on the property as of the December 31 immediately succeeding the sale, transfer, or retention of the property are canceled effective on that December 31. This subsection does not apply to liens recorded by the department of environmental quality environment, Great Lakes, and energy under this act or the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774.
(13) If property foreclosed under section 78k and held by or under the control of a foreclosing governmental unit is a facility as defined under section 20101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101, prior to before the sale or transfer of the property under this section, the property is subject to all of the following:
(a) Upon reasonable written notice from the department of environmental quality, environment, Great Lakes, and energy, the foreclosing governmental unit shall provide access to the department of environmental quality, environment, Great Lakes, and energy, its employees, contractors, and any other person expressly authorized by the department of environmental quality environment, Great Lakes, and energy to conduct response activities at the foreclosed property. Reasonable written notice under this subdivision may include, but is not limited to, notice by electronic mail, or facsimile, if the foreclosing governmental unit consents to notice by electronic mail or facsimile prior to before the provision of notice by the department of environmental quality.environment, Great Lakes, and energy.
(b) If requested by the department of environmental quality environment, Great Lakes, and energy to protect public health, safety, and welfare or the environment, the foreclosing governmental unit shall grant an easement for access to conduct response activities on the foreclosed property as authorized under chapter 7 of article II of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20302.
(c) If requested by the department of environmental quality environment, Great Lakes, and energy to protect public health, safety, and welfare or the environment, the foreclosing governmental unit shall place and record deed restrictions on the foreclosed property as authorized under chapter 7 of article II of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20302.
(d) The department of environmental quality environment, Great Lakes, and energy may place an environmental lien on the foreclosed property as authorized under section 20138 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20138.
(14) If property foreclosed under section 78k and held by or under the control of a foreclosing governmental unit is a facility as defined under section 20101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101, prior to before the sale or transfer of the property under this section, the department of environmental quality environment, Great Lakes, and energy shall request and the foreclosing governmental unit shall transfer the property to the state land bank fast track authority created under section 15 of the land bank fast track act, 2003 PA 258, MCL 124.765, if all of the following apply:
(a) The department of environmental quality environment, Great Lakes, and energy determines that conditions at a foreclosed property are an acute threat to the public health, safety, and welfare, to the environment, or to other property.
(b) The department of environmental quality environment, Great Lakes, and energy proposes to undertake or is undertaking state-funded response activities at the property.
(c) The department of environmental quality environment, Great Lakes, and energy determines that the sale, retention, or transfer of the property other than under this subsection would interfere with response activities by the department of environmental quality.environment, Great Lakes, and energy.
(15) A person convicted for executing a false affidavit under subsection (5) shall be prohibited from bidding for a property or purchasing a property at any sale under this section.
(16) Property held by a governmental entity, including a foreclosing governmental unit, pursuant to this section is exempt from the collection of taxes while held by the governmental entity.
(17) (16) As used in this section:
(a) "Minimum bid" is the minimum amount established by the foreclosing governmental unit for which property may be sold under this section. The minimum bid shall must include all of the following:
(i) All delinquent taxes, interest, penalties, and fees due on the property. If a city, village, or township purchases the property, the minimum bid shall must not include any taxes levied by that city, village, or township and any interest, penalties, or fees due on those taxes.
(ii) The expenses of administering the sale, including all preparations for the sale. The foreclosing governmental unit shall estimate the cost of preparing for and administering the annual sale for purposes of prorating the cost for each property included in the sale.
(b) "Person" means an individual, partnership, corporation, association, or other legal entity.
