SB-1101, As Passed Senate, December 14, 2006
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1101
A bill to amend 1993 PA 331, entitled
"State education tax act,"
by amending section 5b (MCL 211.905b), as amended by 2004 PA 543.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5b. (1) This section applies only to a city or township,
or that portion of a city or township, in which no property taxes,
other than the following, are levied in the summer of 2003 and any
summer after 2003:
(a) The tax levied under this act.
(b) Village taxes.
(c) Beginning in the summer of 2005, that portion of the
number of mills allocated to a county by a county tax allocation
board or authorized for a county through a separate tax limitation
vote, if that portion of the number of mills allocated to a county
by a county tax allocation board or authorized for a county through
a separate tax limitation vote were not levied before the summer of
2005.
(2)
A Except as otherwise
provided in subsection (3), a city
or township shall collect the tax levied under this act unless,
before November 1, 2002, the legislative body of the city or
township adopts a resolution declining to collect the tax levied
under this act and, for a township, the treasurer concurs in
writing with that resolution. Before November 1, 2002, if the city
or township adopts a resolution declining to collect the tax under
this act and, for a township, the treasurer concurs in writing with
that resolution, the appropriate assessing officer shall send a
copy of that resolution and, for a township, that concurrence to
the state treasurer and the treasurer of the county in which the
city or township is located. In January 2004 and each January
thereafter, the legislative body of a city or township that has
declined to collect the tax under this subsection may by resolution
adopted by a majority of the legislative body rescind the earlier
decision to decline to collect the tax. The city or township shall
immediately send a copy of the resolution rescinding the earlier
decision to decline to collect the tax to the state treasurer and
the treasurer of the county in which the city or township is
located. If a city or township collects the tax levied under this
act pursuant to this section, that city or township shall retain
$2.50 for each parcel of property in that city or township on which
the tax levied under this act is billed under this section from the
tax collected under this act before transmitting the tax collected
as provided in this act.
(3) Notwithstanding the adoption of a resolution by the
legislative body of a city or township declining to collect the tax
levied under this act as provided in subsection (2), in a city or
township in which the state treasurer collected the tax levied
under this act during the summer of 2006 pursuant to subsection
(5), the city or township shall collect the tax levied under this
act beginning in the summer of 2007 and each summer thereafter.
(4) (3)
A county that receives a copy of a resolution
declining to collect the tax under this act and, for a township, a
written concurrence as provided in subsection (2) shall collect the
tax levied under this act pursuant to this section unless, before
February 1, 2003, the county board of commissioners adopts a
resolution declining to collect the tax levied under this act and
the county treasurer concurs in writing with that resolution.
Before February 1, 2003, if the county board of commissioners
adopts a resolution declining to collect the tax under this act and
the county treasurer concurs in writing with that resolution, the
county treasurer shall send a copy of that resolution and that
concurrence to the state treasurer. In February 2004 and each
February thereafter, a county board of commissioners that has
declined to collect the tax under this subsection may by
resolution, with the written concurrence of the county treasurer,
rescind the earlier decision to decline to collect the tax. The
county treasurer shall immediately send a copy of the resolution
rescinding the earlier decision to decline to collect the tax and
the written concurrence of the county treasurer to the state
treasurer. If a county collects the tax levied under this act
pursuant to this section, that county shall retain $2.50 for each
parcel
for of property in that county on which the tax levied
under this act is billed under this section from the tax collected
under this act before transmitting the tax collected under this act
to the state treasurer as provided in this act.
(5) (4)
If a city or township does not collect the tax
levied under this act pursuant to subsection (2) and if a county
does not collect the tax levied under this act pursuant to
subsection (3)
(4), the state treasurer shall, except as
otherwise provided in subsection (3), collect the tax under the
provisions of the general property tax act. The collection of the
tax levied under this act is not subject to 1941 PA 122, MCL 205.1
to 205.31. The tax levied under this act collected pursuant to this
subsection is subject to a 1% administration fee.
(6) (5)
All of the following apply to the collection of the
tax levied under this act by a county treasurer or, except as
otherwise provided in subsection (3), the state treasurer:
(a) Not later than June 1, the township or city for which the
tax is being collected shall deliver to the county treasurer or the
state treasurer, as applicable, a certified copy of each assessment
roll for taxable property located in the township or city. Each
assessment roll shall include the taxable value of each parcel
subject to the collection of the tax levied under this act. The
county treasurer or state treasurer, as applicable, shall remit the
necessary cost incident to the reproduction of the assessment roll
to the township or city.
(b) Not later than June 30, the county treasurer or the state
treasurer, as applicable, shall spread the millage levied under
this act against the assessment roll and prepare the tax roll.
(c) The county treasurer or the state treasurer, as
applicable, may impose all or a portion of the fees and charges
authorized under section 44 of the general property tax act, 1893
PA 206, MCL 211.44, on taxes paid before March 1. The county
treasurer or the state treasurer, as applicable, shall retain the
fees and charges imposed under this subdivision regardless of
whether all or part of the fees and charges have been waived by the
township or city.
(7) (6)
In relation to the assessment, spreading, and
collection of taxes pursuant to this section, a county treasurer or
the state treasurer, as applicable, shall have powers and duties
similar to those prescribed by the general property tax act for
township supervisors, township clerks, and township treasurers.
However, this section shall not be considered to transfer any
authority over the assessment of property.
(8) (7)
A county treasurer or state treasurer collecting
taxes pursuant to this section shall be bonded for tax collection
in the same amount and in the same manner as a township treasurer
would be for undertaking the duties prescribed by this section.
(9) (8)
If a county treasurer or the state treasurer
collects the tax levied under this act pursuant to this section,
all payments from this state for collecting the tax levied under
this act in a summer levy, and all revenue generated by the
administration fee, shall be deposited in a restricted account
designated as the "state education tax collection account". The
county treasurer or the state treasurer, as applicable, shall
direct the investment of the account. The county treasurer or the
state treasurer, as applicable, shall credit to the account
interest and earnings from the account investments. Proceeds in
that account shall only be used for the cost of collecting the tax
levied under this act. For a county collecting the tax under this
act, the county board of commissioners shall appropriate sufficient
money from the account to the county treasurer to cover the cost of
collecting the tax levied under this act.
(10) (9)
The tax levied under this act that is collected by
a city pursuant to this section on a date other than a date it
collects city taxes shall be subject to the same fees and charges a
city may impose under section 44 of the general property tax act,
1893 PA 206, MCL 211.44, except that a city may impose the
administration fee on the tax levied under this act that is billed
in the summer even if the fee is not imposed on taxes billed in
December. The tax levied under this act that is collected pursuant
to this section on or before September 14 of each year by a city
that collects school taxes on a date other than the date it
collects city taxes shall be without interest, but the tax levied
under this act that is collected after September 14 in each year
shall bear interest at the rate imposed by section 59 of the
general property tax act, 1893 PA 206, MCL 211.59, on delinquent
property tax levies that become a lien in the same year. All
interest and penalties that are imposed prior to the date the tax
levied under this act is returned as delinquent, other than the
administration fee, shall be transmitted to the state treasurer for
deposit into the state school aid fund established in section 11 of
article IX of the state constitution of 1963. If imposed, the
administration fee shall be retained by the city.
(11) (10)
The tax levied under this act that is collected by
a township on or before September 14 in each year shall be without
interest. The tax levied under this act that is collected after
September 14 of any year shall bear interest at the rate imposed by
section 59 of the general property tax act, 1893 PA 206, MCL
211.59, on delinquent property tax levies that become a lien in the
same year. The tax levied under this act that is collected by a
township is subject to the same fees and charges the township may
impose under section 44 of the general property tax act, 1893 PA
206, MCL 211.44, except that a township may impose the
administration fee on the tax levied under this act that is billed
in the summer even if the fee is not imposed on taxes billed in
December. All interest and penalties that are imposed prior to the
date the tax levied under this act is returned delinquent, other
than the administration fee, shall be transmitted to the state
treasurer for deposit into the state school aid fund established in
section 11 of article IX of the state constitution of 1963. If
imposed, the administration fee shall be retained by the township.
(12) (11)
For taxes levied after December 31, 2003, not
later than June 1 of each year, the county treasurer shall deliver
to the state treasurer a statement of the total amount of the state
education tax levy of the prior year not returned delinquent that
was collected by the county treasurer and collected and remitted to
the county treasurer by each city or township treasurer, together
with a statement for the county and for each city or township of
the number of parcels from which the state education tax was
collected, the number of parcels for which the state education tax
was billed, and the total amount retained by the county treasurer
and by the city or township treasurer as permitted by subsections
(2)
and (3) (4).