Substitute For
SENATE BILL NO. 943
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 51 (MCL 211.51), as amended by 2012 PA 57.
The people of the state of michigan enact:
Sec. 51. (1) If a
township treasurer does not file his or her bond with the county treasurer as
prescribed by law and the township board fails to appoint a treasurer to give
the bond and deliver a receipt for the bond to the supervisor by December 10,
the supervisor shall deliver the tax roll with the necessary warrant directed
to the county treasurer, who shall make the collection and return of taxes. The
county treasurer, pursuant to the adoption of a resolution by the county board
of commissioners, has the same powers and duties to add a property tax
administration fee, a late penalty charge, and interest to all taxes collected
as conferred upon a township treasurer under section 44. The excess of the
amount of property tax administration fees over the expense to the county in
collecting the taxes shall must be returned to the township, and the remainder
of the property tax administration fees and any late penalty charges imposed shall must
be credited to the county general fund. For the purpose of
collecting the taxes, the county treasurer is vested with all the powers
conferred upon the township treasurer and an action may be brought on the
county treasurer's bond under the same circumstances as on those of a township
treasurer.
(2) A local tax collecting unit that collects a summer
property tax shall defer the collection of summer property taxes against the
following property for which a deferment is claimed until the following
February 15:
(a) The principal residence of a taxpayer who meets both of
the following conditions:
(i) Meets 1 or more of the
following conditions:
(A) Is a totally and
permanently disabled person, blind person, paraplegic, quadriplegic, eligible
serviceperson, eligible veteran, or eligible widow or widower, as these persons
are defined in chapter 9 of the income tax act of 1967, 1967 PA 281, MCL
206.501 to 206.532.
(B) Is 62 years of age
or older, including the unremarried surviving spouse of a person who was 62
years of age or older at the time of death.
(ii) For the prior taxable tax year had a total household income of the following:
(A) For taxes levied
before January 1, 2005, $25,000.00, or less.
(B) For taxes levied
after December 31, 2004 and before January 1, 2006, $35,000.00, or less.
(C) For taxes levied
after December 31, 2005 and before January 1, 2007, $37,500.00, or less.
(D) For taxes levied
after December 31, 2006, $40,000.00, or less.
(b) Property classified
or used as agricultural real property if the gross receipts of the agricultural
or horticultural operations in the previous year or the average gross receipts
of the operations in the previous 3 years are not less than the household
income of the owner in the previous year or the combined household incomes in
the previous year of the individual members of a limited liability company or
partners of a partnership that owns the agricultural real property. A limited
liability company or partnership may claim the deferment under this section
only if the individual members of the limited liability company or partners of
the partnership qualified for the deferment under this section before the
individual members or partners formed the limited liability company or
partnership.
(c) For summer property taxes levied in calendar year 2020
only, real property used primarily for the operation of an eligible business that
experienced economic hardship as a result of the COVID-19 pandemic or the
government's response to the pandemic, or both. All of the following apply to deferments
under this subdivision:
(i) The department of
treasury shall do all of the following:
(A) Develop criteria, including required taxpayer
documentation, for use in determining whether a taxpayer's real property
qualifies for the deferment under this subdivision. The department's criteria
must be narrowly tailored to determining only the following:
(I) Whether the real property was and continues to be used
primarily for the operation of an eligible business that experienced economic
hardship as a result of the COVID-19 pandemic or the government's response to
the pandemic, or both.
(II) Whether there remains any unpaid summer property taxes
levied in calendar year 2020 on the real property and, if so, the amount of
those unpaid taxes.
(B) Develop an application form and process by which
taxpayers may apply for the deferment under this subdivision by filing the
intent statement required by subsection (3) directly with the department.
(C) Approve qualifying applications until the appropriation
described in subparagraph (ii) is exhausted.
(ii) Subject to
appropriation, it is the intent of the legislature that the department of
treasury provides for payment to local tax collecting units of amounts equal to
the penalty and interest charges waived under subsection (3) on unpaid summer
property taxes the collection of which was deferred under this subdivision.
(iii) Deferments under
this subdivision are available only to qualifying property for which, as of the
effective date of the amendatory act that added this subdivision, there remains
unpaid summer property taxes levied in calendar year 2020 and only to the
extent of those unpaid summer property taxes.
(iv) This subdivision
does not prohibit the appeal of an assessment to the board of review on
property for which an application for a deferment under this subdivision is
made if that appeal is made in calendar year 2020.
(3) A taxpayer may claim
a deferment provided by under
subsection (2) (2)(a)
or (b) by filing with the treasurer of the local property tax collecting unit an intent to defer the
summer property taxes that are due and payable in that year without penalty or
interest. A taxpayer may claim a deferment under
subsection (2)(c) by filing with the department of treasury an intent to defer
summer property taxes levied in calendar year 2020 that are due and payable in
that year without penalty or interest. Taxes deferred under subsection
(2) that are not paid by the following February 15 are not subject to penalties
or interest for the period of deferment, and a local tax
collecting unit shall not collect any unpaid penalties or interest that has
accrued before the effective date of the amendatory act that added subsection
(2)(c) on summer property taxes subject to deferred collection under subsection
(2)(c).
(4) The intent statement
required by subsection (3) shall must be on a form prescribed and provided by the
department of treasury to the treasurer of the local property
tax collecting unit.
(5) The treasurer of the
local property tax collecting unit that
collects a summer property tax shall do the following:
(a) Cause a notice of
the availability of the deferment to be published in a newspaper of general
circulation within the local property tax collecting
unit or to be included as an insertion with the tax bill.
(b) Assist persons in
completing the deferment form.
(6) If a local property tax collecting unit that collects a summer
property tax also collects a winter property tax in the same year, a statement
of the amount of taxes deferred pursuant to under subsection (2) shall must be in the December tax statement mailed by the
local property tax collecting unit for each
summer property tax payment that was deferred from collection. If a local property tax collecting unit that collects a summer
property tax does not collect a winter property tax in the same year, it shall
mail a statement of the amount of taxes deferred under subsection (2) at the
same time December tax statements are required to be mailed under section 44. This subsection does not apply to deferments under subsection
(2)(c).
(7) Persons eligible for
deferment of summer property taxes under subsection (2)
(2)(a) and (b) may file their intent to
defer until September 15 or the time the tax would otherwise become subject to
interest or a late penalty charge for late payment, whichever is later. An owner of property eligible for deferment of summer property
taxes under subsection (2)(c) may file an intent to defer until January 31,
2021.
(8) To the extent
permitted by the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or
the charter of a local property tax collecting
unit, a local property tax collecting unit may
provide for the levy and collection of summer property taxes. The terms and
conditions of collection established by or under an agreement executed pursuant
to the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or the charter
of a local tax collecting unit govern a summer property tax levy.
(9) As used in this
section:
(a) "Eligible business" means any of the following:
(i) An entertainment
venue.
(ii) An exercise
facility.
(iii) A food service
establishment.
(iv) A recreation
facility or place of public amusement.
(b) "Entertainment venue" includes an auditorium,
arena, banquet hall, cinema, concert hall, conference center, performance
venue, sporting venue, stadium, or theater.
(c) "Exercise facility" means a facility in which
individuals participate in individual or group physical activity, including a
gymnasium, fitness center, or exercise studio.
(d) "Food service establishment" means that term as
defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.
(e) (a) "Principal
residence" means property exempt under section 7cc.
(f) "Recreation facility or place of public
amusement" includes an amusement park, arcade, bingo hall, bowling alley,
casino, nightclub, skating rink, strip club, water park, or trampoline park.
(g) (b) "Summer
property tax" means a levy of ad valorem property taxes that first becomes
a lien before December 1 of any calendar year.