HOUSE BILL No. 5029
July 9, 1997, Introduced by Rep. Bobier and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 55a, 57, 60, 61, 66, 67, 67a, 68, 70, 70b,
71, 72, 73c, 74, 84, 108, 131, 131c, and 131e (MCL 211.55a,
211.57, 211.60, 211.61, 211.66, 211.67, 211.67a, 211.68, 211.70,
211.70b, 211.71, 211.72, 211.73c, 211.74, 211.84, 211.108,
211.131, 211.131c, and 211.131e), sections 55a and 70b as added
and sections 57, 60, 61, 73c, 74, 108, 131, and 131c as amended
by 1993 PA 291, section 67a as amended by 1984 PA 103, section 72
as amended by 1993 PA 202, section 84 as amended by 1981 PA 162,
and section 131e as amended by 1996 PA 476, and by adding section
131f.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 55a. (1) Except as provided in subsection (2), for
2 taxes returned as delinquent after February 28, 1994 AND BEFORE
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1 JANUARY 1, 1997, a separate tax roll designated as the "certified
2 special residential property tax roll" shall be delivered by the
3 treasurer of the local tax collecting unit to the county trea-
4 surer that identifies parcels that are certified special residen-
5 tial property for which the taxes are unpaid as of March 1.
6 (2) If the county treasurer collects the county tax in the
7 local tax collecting unit, the certified special residential
8 property tax roll may be prepared by May 1.
9 (3) If the treasurer of the local tax collecting unit does
10 not return taxes delinquent under section 55, he or she may cer-
11 tify a list of parcels of certified special residential property
12 to the county treasurer not later than March 15, or if the list
13 contains 500 parcels or less, April 1 of each year. The list
14 shall identify the parcels by parcel identification numbers com-
15 patible with the parcel identification numbers used by the county
16 treasurer. The county treasurer shall identify those parcels of
17 certified special residential property on which those property
18 taxes collected by the county treasurer are delinquent and pre-
19 pare the certified special residential property tax roll.
20 (4) The certified special residential property tax roll con-
21 taining parcels identified as certified special residential prop-
22 erty under this section shall contain an affidavit of the offi-
23 cial of the local tax collecting unit responsible for identifying
24 those parcels indicating that those parcels meet the criteria of
25 certified special residential property.
26 (5) This section does not apply unless the certified special
27 residential property is located in a local tax collecting unit in
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1 which the local governing body, not later than December 31 of the
2 year immediately preceding the year to which a resolution ini-
3 tially applies, adopts a resolution of general application
4 declaring that nonpayment of property taxes is contributing to
5 neighborhood deterioration and blight.
6 (6) This section does not apply unless each taxing unit
7 levying a tax within the local tax collecting unit and for whom
8 the county treasurer collects delinquent real property taxes
9 adopts a resolution of general application waiving the right to
10 receive real property taxes on certified special residential
11 property from the proceeds of delinquent tax revolving fund notes
12 or from the proceeds of any sale under section 131.
13 (7) A resolution adopted under subsection (5) or (6) shall
14 continue until revoked but is not subject to revocation until
15 certified special residential property tax rolls have been pre-
16 pared for 3 years after adoption of the resolution. A revocation
17 shall be made not later than the December 31 preceding the year
18 to which the revocation applies.
19 (8) This section applies only to a county that contains a
20 city with a population of more than 25,000 or a city in which
21 there is an enterprise zone established under the enterprise zone
22 act, Act No. 224 of the Public Acts of 1985, being
23 sections 125.2101 to 125.2122 of the Michigan Compiled Laws 1985
24 PA 224, MCL 125.2101 TO 125.2123.
25 (9) For purposes of this section, property is presumed to be
26 abandoned residential property if either of the following
27 applies:
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1 (a) A representative of the local tax collecting unit
2 records with the treasurer of the local tax collecting unit an
3 affidavit stating the property has been determined to be aban-
4 doned residential property as provided for in subsection (12).
5 (b) A representative of the local tax collecting unit
6 records with the treasurer of the local tax collecting unit an
7 affidavit stating the property has been determined abandoned
8 under an ordinance passed by the governing body of the local tax
9 collecting unit that has procedural requirements substantially
10 the same as those provided in subsection (12)(b). However, if
11 the property is determined abandoned under a nuisance abatement
12 ordinance, the local tax collecting unit shall follow the proce-
13 dure provided for in subsection (12)(b)(ii) and (iii).
14 (10) A designated party other than a county is subject to
15 the direction of the local tax collecting unit. The local tax
16 collecting unit shall review a designated party annually to
17 verify compliance with the requirements of subsection (12)(e). A
18 designated party's status may be terminated for failure to comply
19 with the requirements of subsection (12)(e).
20 (11) Delinquent taxes on property listed on the certified
21 special residential property tax roll are not considered delin-
22 quent real property taxes for purposes of section 87b and shall
23 be processed by the county treasurer under section 87 except that
24 the county treasurer shall pay these amounts to all local units
25 on the same date as the county distributes money from the delin-
26 quent tax revolving fund instead of delivering payments to the
27 local units each month.
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1 (12) As used in this act:
2 (a) "Abandoned" means with respect to a specific parcel of
3 property that the property is vacant or dilapidated and open to
4 entrance or trespass.
5 (b) "Abandoned residential property" means a parcel of prop-
6 erty containing a structure intended for residential purposes
7 that is classified as residential or commercial under section
8 34c, but excluding property used for agricultural purposes, and
9 that has been determined to be abandoned under the following
10 procedures:
11 (i) A representative of the local tax collecting unit made a
12 personal inspection of the property and determined the property
13 is abandoned.
14 (ii) A notice was posted on the property at the time of the
15 personal inspection by a representative of the local tax collect-
16 ing unit and a notice was sent by certified mail by the local tax
17 collecting unit to each owner and person with a legal interest in
18 the property according to the records of the treasurer of the
19 local tax collecting unit. The notice included all of the fol-
20 lowing information:
21 (A) The legal description and street address of the
22 property.
23 (B) A statement that the property is abandoned.
24 (C) A statement that, due to abandonment, the property is
25 subject to accelerated sale for enforcement and collection of
26 delinquent property taxes in the second May following the March
27 in which the taxes became delinquent.
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1 (D) A statement that the property will be presumed abandoned
2 unless the owner or a person claiming a lawful interest responds
3 within 15 days of receipt of the notice with an affidavit filed
4 with or sent by first-class mail to the treasurer of the local
5 tax collecting unit stating that the owner or person with a
6 lawful interest in the property is occupying or intends to occupy
7 the property.
8 (iii) The owner or a person claiming a lawful interest in
9 the property has not claimed the property is not abandoned by
10 filing the affidavit required by subparagraph (ii)(D).
11 (c) "Certified special residential property officer" means
12 any of the following:
13 (i) For a local tax collecting unit, the person popularly
14 elected as mayor or supervisor.
15 (ii) For a county, the person popularly elected as county
16 executive.
17 (iii) For a local tax collecting unit or county that does
18 not have a person described in subparagraphs (i) or (ii), a
19 person designated by the governing body of the local tax collect-
20 ing unit or the county.
21 (d) "Certified special residential property" means a parcel
22 of property that is abandoned residential property or in a county
23 organized under Act No. 293 of the Public Acts of 1966, being
24 sections 45.501 to 45.521 of the Michigan Compiled Laws 1966 PA
25 293, MCL 45.501 TO 45.521, a parcel of property that is either
26 abandoned residential property or residential rental property as
27 defined in this section.
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1 (e) "Designated parcel" means a parcel for which 1 of the
2 following is true:
3 (i) The parcel is located in an area for which a local tax
4 collecting unit has prepared architectural or engineering draw-
5 ings for projects that include the acquisition of property.
6 (ii) The parcel is included in an area for which the local
7 tax collecting unit has adopted or is in the process of adopting
8 a program, district, or plan pursuant to a charter or ordinance,
9 state or federal law, or rules or regulations promulgated there-
10 under, that provides for adoption or creation by a public entity
11 of a program, district, or plan covering a geographical area or
12 permits acquisition of property by a public entity.
13 (f) "Designated party" means any of the following:
14 (i) A person that has been given responsibility and control
15 with respect to a parcel of abandoned residential property under
16 a nuisance abatement ordinance.
17 (ii) A person that meets the following requirements, as cer-
18 tified by a procedure adopted by the governing body and approved
19 by the elected chief executive officer of the local tax collect-
20 ing unit to d