HOUSE BILL No. 5860


     April 9, 2002, Introduced by Rep. Birkholz and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending section 42a (MCL 211.42a), as amended by 1994 PA

   415.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 42a.  (1) Subject to this section, a local tax collect-

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        ing unit may use a computerized data base SYSTEM as the tax roll

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        if  the  ANY OF THE FOLLOWING APPLY:

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             (A) THE local unit obtains written authorization from the

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        state tax commission.  and the state treasurer.

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             (B) THE TREASURER OF THE COUNTY IN WHICH THE LOCAL TAX COL-

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        LECTING UNIT IS LOCATED OBTAINS WRITTEN AUTHORIZATION FROM THE

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        STATE TAX COMMISSION FOR THE USE BY THE COUNTY TREASURER OR LOCAL

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        TAX COLLECTING UNITS WITHIN THE COUNTY OF AN APPROVED

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        COMPUTERIZED DATA BASE SYSTEM AS THE TAX ROLL.


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             (C) THE STATE TAX COMMISSION FAILS TO AUTHORIZE OR DENY

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        WITHIN 120 DAYS A WRITTEN REQUEST FROM A COUNTY TREASURER OR A

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        LOCAL TAX COLLECTING UNIT UNDER THIS SUBSECTION TO USE A COMPUT-

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        ERIZED DATA BASE SYSTEM AS THE TAX ROLL.

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             (2) The state tax commission  and the state treasurer  shall

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        authorize the use of a computerized data base SYSTEM as the tax

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        roll if the local tax collecting unit OR THE COUNTY TREASURER

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        demonstrates that the proposed system has the capacity to enable

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         the  A local unit to comply and the local unit complies with all

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        of the following requirements:

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             (a) An original precollection tax roll shall be printed from

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        the computerized data base and warranted by the assessor.  That

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        printed precollection tax roll shall be maintained by the asses-

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        sor until the expiration of the redemption period provided in

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        section  74 following the May tax sale  78K FOLLOWING THE ENTRY

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        OF A JUDGMENT FORECLOSING PROPERTY FORFEITED FOR DELINQUENT TAXES

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        UNDER SECTION 78G, OR THE RESOLUTION OF ALL PENDING APPEALS,

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        WHICHEVER IS LATER.

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             (b) A separate computer printout of all parcel splits and

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        combinations, including sufficient information to document the

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        accuracy of the splits or combinations, shall be prepared and

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        maintained by the assessor until the expiration of the redemption

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        period provided in section  74 following the May tax sale  78K

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        FOLLOWING THE ENTRY OF A JUDGMENT FORECLOSING PROPERTY FORFEITED

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        FOR DELINQUENT TAXES UNDER SECTION 78G, OR THE RESOLUTION OF ALL

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        PENDING APPEALS, WHICHEVER IS LATER.





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             (c) A separate computer printout of all corrections and

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        adjustments to the precollection tax roll authorized by action of

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        the board of review, state tax commission, or tax tribunal,

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        including sufficient information to document the accuracy of all

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        corrections and adjustments, shall be prepared and maintained by

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        the assessor until the expiration of the redemption period pro-

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        vided in section  74 following the May tax sale  78K FOLLOWING

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        THE ENTRY OF A JUDGMENT FORECLOSING PROPERTY FORFEITED FOR DELIN-

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        QUENT TAXES UNDER SECTION 78G, or the resolution of all pending

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        appeals, whichever is later.

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             (d) The local tax collecting treasurer and the assessor

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        shall produce a final computer printed settlement tax roll to

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        certify taxes collected to the county treasurer under

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        section 55.  The assessor shall certify that taxable values,

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        state equalized valuations, adjusted valuations, and the spread

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        of taxes and adjusted taxes are correctly recorded in the settle-

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        ment tax roll.  The local tax collecting treasurer shall certify

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        delinquent taxes and certify that all tax collections are posted

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        on the settlement tax roll.  Those certifications and the settle-

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        ment tax roll shall be transmitted to the county treasurer.  The

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        affidavit attached to the settlement tax roll shall include docu-

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        mentation that authorizes and reports all changes in the precol-

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        lection tax roll.

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             (e) The treasurer of the local tax collecting unit shall

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        prepare and maintain a journal of the collections totaled and

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        reconciled to the amount of actual collections daily.





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             (f) A payment of the tax shall be posted to the computerized

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        data base SYSTEM using a transaction or receipt number with the

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        date of payment.  A posting on the computerized data base SYSTEM

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        is considered the entry of the fact and date of payment in an

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        indelible manner on the tax roll as required by section 46(2).

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             (g) The computerized data base system has internal and

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        external security procedures sufficient to assure the integrity

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        of the system.

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             (h) The local tax collecting unit is capable of making

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        available a posted computer printed tax roll.

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             (i) The computerized data base system is compatible with the

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        system used by the county treasurer for the collection of delin-

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        quent taxes.

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             (3) Not later than May 1 of the third year following the

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        year in which  the  A local tax collecting unit begins using a

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        computerized data base SYSTEM as the tax roll after approval

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        under subsection (1) and every 3 years thereafter, the local tax

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        collecting unit shall certify to the state tax commission  and

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        the department of treasury  that the requirements of this section

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        are being met.

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             (4) A COUNTY TREASURER OR local tax collecting unit that

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        provides a computer terminal for public viewing of the tax roll

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        is considered having the tax roll available for public

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        inspection.

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             (5) If at any time the state treasurer or the state tax com-

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        mission believes that  the  A local tax collecting unit is no

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        longer in compliance with subsection (2), the state treasurer or



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        the state tax commission shall provide written notice to  the

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        THAT local tax collecting unit.  The notice shall specify the

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        reasons that use of the computerized data base SYSTEM as the

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        original tax roll is no longer in compliance with

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        subsection (2).  The local TAX COLLECTING unit has not less than

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        60 days to provide evidence that the LOCAL TAX COLLECTING unit is

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        in compliance with subsection (2) or that action to correct non-

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        compliance has been implemented.  If, after the expiration of 60

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        days, the state tax commission or the state treasurer believes

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        that the local tax collecting unit is not taking satisfactory

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        steps to correct a condition of noncompliance, the state tax com-

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        mission upon its own motion may, and upon the request of the

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        state treasurer shall, withdraw approval of the use of the com-

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        puterized data base SYSTEM as the original tax roll.  Proceedings

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        of the STATE TAX commission under this subsection shall be in

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        accordance with rules for other proceedings of the commission

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        promulgated under the administrative procedures act of 1969,  Act

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        No. 306 of 1969, being sections 24.201 to 24.328 of the Michigan

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        Compiled Laws  1969 PA 306, MCL 24.201 TO 24.328, and shall not

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        be considered a contested case.

















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