SB-1409, As Passed Senate, December 14, 2006

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 1409

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 78i, 78k, and 131e (MCL 211.78i, 211.78k, and

 

211.131e), as amended by 2003 PA 263; and to repeal acts and parts

 

of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 78i. (1) Not later than May 1 immediately succeeding the

 

forfeiture of property to the county treasurer under section 78g,

 

the foreclosing governmental unit shall initiate a search of

 

records identified in subsection (6) to identify the owners of a

 

property interest in the property who are entitled to notice under

 

this section of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k. The foreclosing governmental

 

unit may enter into a contract with 1 or more authorized


 

representatives to perform a title search or may request from 1 or

 

more authorized representatives another title search product to

 

identify the owners of a property interest in the property as

 

required under this subsection or to perform other functions

 

required for the collection of delinquent taxes under this act.

 

     (2) After conducting the search of records under subsection

 

(1), the foreclosing governmental unit or its authorized

 

representative shall determine the address reasonably calculated to

 

apprise those owners of a property interest of the show cause

 

hearing under section 78j and the foreclosure hearing under section

 

78k and shall send notice of the show cause hearing under section

 

78j and the foreclosure hearing under section 78k to those owners,

 

and to a person entitled to notice of the return of delinquent

 

taxes under section 78a(4),  and to a person to whom a tax deed for

 

property returned for delinquent taxes was issued pursuant to

 

section 72 as determined by the records of the state treasurer or

 

county treasurer as applicable,  by certified mail, return receipt

 

requested, not less than 30 days before the show cause hearing. If

 

after conducting the search of records under subsection (1) the

 

foreclosing governmental unit is unable to determine an address

 

reasonably calculated to inform a person with an interest in a

 

forfeited property, or if the foreclosing governmental unit

 

discovers a deficiency in notice under subsection (4), the

 

following shall be considered reasonable steps by the foreclosing

 

governmental unit or its authorized representative to ascertain the

 

address of a person entitled to notice under this section or to

 

ascertain an address necessary to correct the deficiency in notice


 

under subsection (4):

 

     (a) For an individual, a search of the records of the probate

 

court for the county in which the property is located.

 

     (b) For an individual, a search of the qualified voter file

 

established under section 509o of the Michigan election law, 1954

 

PA 116, MCL 168.509o, which is authorized by this subdivision.

 

     (c) For a partnership, a search of partnership records filed

 

with the county clerk.

 

     (d) For a business entity other than a partnership, a search

 

of business entity records filed with the department of labor and

 

economic growth.

 

     (3) The foreclosing governmental unit or its authorized

 

representative or authorized agent shall make a personal visit to

 

each parcel of property forfeited to the county treasurer under

 

section 78g to ascertain whether or not the property is occupied.

 

If the property appears to be occupied, the foreclosing

 

governmental unit or its authorized representative shall do all of

 

the following:

 

     (a) Attempt to personally serve upon a person occupying the

 

property notice of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k.

 

     (b) If a person occupying the property is personally served,

 

orally inform the occupant that the property will be foreclosed and

 

the occupants will be required to vacate unless all forfeited

 

unpaid delinquent taxes, interest, penalties, and fees are paid, of

 

the time within which all forfeited unpaid delinquent taxes,

 

interest, penalties, and fees must be paid, and of agencies or


 

other resources that may be available to assist the owner to avoid

 

loss of the property.

 

     (c) If the occupant appears to lack the ability to understand

 

the advice given, notify the  family independence agency  

 

department of human services or provide the occupant with the names

 

and telephone numbers of the agencies that may be able to assist

 

the occupant.

 

     (d) If the foreclosing governmental unit or its authorized

 

representative is not able to personally meet with the occupant,

 

the foreclosing governmental unit or its authorized representative

 

shall place the notice in a conspicuous manner on the property and

 

shall also place in a conspicuous manner on the property a notice

 

that explains, in plain English, that the property will be

 

foreclosed unless forfeited unpaid delinquent taxes, interest,

 

penalties, and fees are paid, the time within which forfeited

 

unpaid delinquent taxes, interest, penalties, and fees must be

 

paid, and the names, addresses, and telephone numbers of agencies

 

or other resources that may be available to assist the occupant to

 

avoid loss of the property. If this state is the foreclosing

 

governmental unit within a county, the department of  natural

 

resources  treasury shall perform the personal visit to each parcel

 

of property under this subsection on behalf of this state.

 

     (4) If the foreclosing governmental unit or its authorized

 

representative discovers any deficiency in the provision of notice,

 

the foreclosing governmental unit shall take reasonable steps in

 

good faith to correct that deficiency not later than 30 days before

 

the show cause hearing under section 78j, if possible.


 

     (5) If the foreclosing governmental unit or its authorized

 

representative is unable to ascertain the address reasonably

 

calculated to apprise the owners of a property interest entitled to

 

notice under this section, or is unable to notify the owner of a

 

property interest under subsection (2), the notice shall be made by

 

publication. A notice shall be published for 3 successive weeks,

 

once each week, in a newspaper published and circulated in the

 

county in which the property is located, if there is one. If no

 

paper is published in that county, publication shall be made in a

 

newspaper published and circulated in an adjoining county. This

 

publication shall be instead of notice under subsection (2).

 

     (6) The owner of a property interest is entitled to notice

 

under this section of the show cause hearing under section 78j and

 

the foreclosure hearing under section 78k if that owner's interest

 

was identifiable by reference to any of the following sources

 

before the date that the county treasurer records the certificate

 

required under section 78g(2):

 

     (a) Land title records in the office of the county register of

 

deeds.

 

     (b) Tax records in the office of the county treasurer.

 

     (c) Tax records in the office of the local assessor.

 

     (d) Tax records in the office of the local treasurer.

 

     (7) The notice required under subsections (2) and (3) shall

 

include all of the following:

 

     (a) The date on which the property was forfeited to the county

 

treasurer.

 

     (b) A statement that the person notified may lose his or her


 

interest in the property as a result of the foreclosure proceeding

 

under section 78k.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person to whom the notice is addressed.

 

     (e) The total taxes, interest, penalties, and fees due on the

 

property.

 

     (f) The date and time of the show cause hearing under section

 

78j.

 

     (g) The date and time of the hearing on the petition for

 

foreclosure under section 78k, and a statement that unless the

 

forfeited unpaid delinquent taxes, interest, penalties, and fees

 

are paid on or before the March 31 immediately succeeding the entry

 

of a judgment foreclosing the property under section 78k, or in a

 

contested case within 21 days of the entry of a judgment

 

foreclosing the property under section 78k, the title to the

 

property shall vest absolutely in the foreclosing governmental unit

 

and that all existing interests in oil or gas in that property

 

shall be extinguished except the following:

 

     (i) 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.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.


 

     (h) An explanation of the person's rights of redemption and

 

notice that the rights of redemption will expire on the March 31

 

immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k, or in a contested case 21 days after

 

the entry of a judgment foreclosing the property under section 78k.

 

     (8) The published notice required under subsection (5) shall

 

include all of the following:

 

     (a) A legal description or parcel number of each property.

 

     (b) The street address of each property, if available.

 

     (c) The name of any person or entity entitled to notice under

 

this section who has not been notified under subsection (2) or (3).

 

     (d) The date and time of the show cause hearing under section

 

78j.

 

     (e) The date and time of the hearing on the petition for

 

foreclosure under section 78k.

 

     (f) A statement that unless all forfeited unpaid delinquent

 

taxes, interest, penalties, and fees are paid on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under section 78k, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under

 

section 78k, the title to the property shall vest absolutely in the

 

foreclosing governmental unit and that all existing interests in

 

oil or gas in that property shall be extinguished except the

 

following:

 

     (i) 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.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (g) A statement that a person with an interest in the property

 

may lose his or her interest in the property as a result of the

 

foreclosure proceeding under section 78k and that all existing

 

interests in oil or gas in that property shall be extinguished

 

except the following:

 

     (i) 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.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (9) The owner of a property interest who has been properly

 

served with a notice of the show cause hearing under section 78j

 

and the foreclosure hearing under section 78k and who failed to

 

redeem the property as provided under this act shall not assert any

 

of the following:

 

     (a) That notice was insufficient or inadequate on the grounds

 

that some other owner of a property interest was not also served.

 

     (b) That the redemption period provided under this act was

 

extended in any way on the grounds that some other owner of a


 

property interest was not also served.

 

     (10) The failure of the foreclosing governmental unit to

 

comply with any provision of this section shall not invalidate any

 

proceeding under this act if the owner of a property interest or a

 

person to whom a tax deed was issued is accorded the minimum due

 

process required under the state constitution of 1963 and the

 

constitution of the United States.

 

     (11) As used in this section, "authorized representative"

 

includes all of the following:

 

     (a) A title insurance company or agent licensed to conduct

 

business in this state.

 

     (b) An attorney licensed to practice law in this state.

 

     (c) A person accredited in land title search procedures by a

 

nationally recognized organization in the field of land title

 

searching.

 

     (d) A person with demonstrated experience searching land title

 

records, as determined by the foreclosing governmental unit.

 

     (12) The provisions of this section relating to notice of the

 

show cause hearing under section 78j and the foreclosure hearing

 

under section 78k are exclusive and exhaustive. Other requirements

 

relating to notice or proof of service under other law, rule, or

 

legal requirement are not applicable to notice and proof of service

 

under this section.

 

     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 personal

 

visit to the property and publication under section 78i.

 

     (2) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure 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.

 

     (b) The person appointed to decide whether a tax shall be

 

levied under a law of this state acted without jurisdiction, or did

 

not impose the tax in question.

 

     (c) The property was exempt from the tax in question, or the

 

tax was not legally levied.

 

     (d) The tax has been paid within the time limited by law for

 

payment or redemption.

 

     (e) The tax was assessed fraudulently.

 

     (f) The description of the property used in the assessment was

 

so indefinite or erroneous that the forfeiture was void.

 

     (3) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure who desires to contest that

 

petition shall file written objections with the clerk of the

 

circuit court and serve those objections on the foreclosing

 

governmental unit prior to 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 shall be included in the

 

immediately succeeding year's tax foreclosure proceeding.

 

     (5) The circuit court shall enter final judgment on a petition

 

for foreclosure 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 shall 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 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 pursuant to 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, or restrictions or other governmental interests imposed

 

pursuant to 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 shall be deemed 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, 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) prior to the hearing.

 

     (iii) Prior to 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) shall 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.

 

     (6) Except as otherwise provided in subsection (5)(c) and (e),

 

fee simple title to property set forth in a petition for

 

foreclosure 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, shall vest absolutely in the foreclosing governmental

 

unit, and the foreclosing governmental unit shall have 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 shall not be stayed or held invalid except as

 

provided in subsection (7) or (9).

 

     (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

 

shall not be de novo. The circuit court's judgment foreclosing

 

property shall 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

 

shall 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) 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.

 

     (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.

 

     Sec. 131e. (1) For all property the title to which vested in

 

this state under this section after October 25, 1976, the

 

redemption period on property deeded to the state under former

 

section 67a shall be extended until the owners of a recorded

 

property interest in the property have been notified of a hearing

 

before the department of treasury, a local unit of government, or a

 

land bank fast track authority. Proof of the notice of a hearing

 

under this section shall be recorded with the register of deeds in

 

the county in which the property is located in a form prescribed by

 

the department of treasury. If a notice is recorded in error, the

 

department of treasury,  or  a local unit of government, or a land

 

bank fast track authority may correct the error by recording a

 

certificate of error with the register of deeds. A notice under

 

this subsection need not be notarized and may be authenticated by

 

digital signature or other electronic means.

 

     (2) For all property the title to which vested in this state


 

under this section after October 25, 1976, 1 hearing shall be held

 

to allow each owner of a recorded property interest the opportunity

 

to show cause why the tax sale and the deed to the state should be

 

canceled for any reason specified in section 98. The hearing shall

 

be held after the expiration of the redemption periods provided in

 

section 131c. The department of treasury, a local unit of

 

government, or a land bank fast track authority may hold combined

 

or separate show cause hearings for different owners of a recorded

 

property interest.

 

     (3) For tax reverted property that was transferred to a local

 

unit of government under section 2101 or 2102 of the natural

 

resources and environmental protection act, 1994 PA 451, MCL

 

324.2101 and 324.2102, or under former section 461 of 1909 PA 223,

 

if the local unit of government determines that the owner of a

 

recorded property interest was not properly served with a notice of

 

the hearing under this section, the local unit of government or a

 

land bank fast track authority may conduct a hearing to show cause

 

why the tax sale and tax deed to the state should be canceled for

 

any reason specified in section 98. Notice of the hearing shall be

 

provided to the department of treasury, which may provide evidence

 

why the tax sale and tax deed to the state should not be set aside.

 

The local unit of government or a land bank fast track authority

 

may hold combined or separate show cause hearings for different

 

owners of a recorded property interest.

 

     (4) For all property the title to which vested in this state

 

under this section after October 25, 1976, after expiration of the

 

redemption periods provided in section 131c, on the first Tuesday


 

in November after title to the property vests in this state, an

 

owner of a recorded property interest may redeem the property up to

 

30 days following the date of hearing for that owner of a recorded

 

property interest provided by this section by payment of the

 

amounts set forth in subsection (5) and in section 131c(1), plus an

 

additional penalty of 50% of the tax on which foreclosure was made.

 

The additional penalty shall be credited to the delinquent property

 

tax administration fund. A redemption under this section shall

 

reinstate title as provided in section 131c(4).

 

     (5) For all property the title to which vested in this state

 

under this section after October 25, 1976, if property redeemed

 

under this section has been exempt from taxes levied in any year

 

after the year of foreclosure because a deed to that property was

 

issued to  the  this state, an amount equal to the sum of the

 

following amounts shall be paid, as required by subsection (4),

 

before redemption of the property:

 

     (a) For taxes and ad valorem special assessments levied before

 

January 1, 1997, an amount computed by applying the special

 

assessment and ad valorem property tax rates levied by taxing units

 

in which the property is located in the years the property was

 

exempt against the most recently established state equalized

 

valuation of the property. For taxes and ad valorem special

 

assessments levied after December 31, 1996, an amount computed by

 

applying the special assessment and ad valorem property tax rates

 

levied by taxing units in which the property is located in the

 

years the property was exempt against the most recently established

 

taxable value of the property. For purposes of this subsection,


 

special assessments do not include special assessments or special

 

assessment installments deferred under former section 67a.

 

     (b) If the levy of an ad valorem special assessment on the

 

property's taxable value is found to be invalid by a court of

 

competent jurisdiction, the levy of the ad valorem special

 

assessment may be levied on the property's state equalized value.

 

     (c) Interest on the delinquent taxes or special assessments to

 

be computed from the date title vested in this state to the date of

 

the application to redeem under this section.

 

     (d) Interest and penalties on taxes and special assessments

 

identified by subdivision (a) that would have been imposed by law

 

or charter and would have accrued if the property had not been

 

exempt, computed from the date title vested in the state to the

 

date of the application to redeem under this section.

 

     (6) For all property the title to which vested in this state

 

under this section after October 25, 1976, the owner of a recorded

 

property interest who has been properly served with a notice of a

 

hearing under this section and who fails to redeem the property as

 

provided under this section shall not assert any of the following:

 

     (a) That notice was insufficient or inadequate on the grounds

 

that some other owner of a property interest was not also served.

 

     (b) That the redemption period provided under this section was

 

extended in any way on the grounds that some other owner of a

 

property interest was not also served.

 

     (7) For tax reverted property that was transferred to a local

 

unit of government under section 2101 or 2102 of the natural

 

resources and environmental protection act, 1994 PA 451, MCL


 

324.2101 and 324.2102, or under former section 461 of 1909 PA 223,

 

the local unit of government may initiate an expedited quiet title

 

and foreclosure action to quiet title to the property in the same

 

manner as a land bank fast track authority under section 9 of the

 

land bank fast track act, 2003 PA 258, MCL 124.759. A local unit of

 

government may initiate an action under this subsection as an

 

alternative to a hearing by the local unit of government under this

 

section.

 

     (8) For tax reverted property held by a land bank fast track

 

authority, in lieu of notice and a hearing under this section, the

 

land bank fast track authority may initiate an expedited quiet

 

title and foreclosure action to quiet title to the property under

 

section 9 of the land bank fast track act, 2003 PA 258, MCL

 

124.759.

 

     (9) A document, including, but not limited to, proof of notice

 

of a hearing or a certificate of error, may be recorded with the

 

register of deeds office in the county in which the property is

 

located without the payment of a fee by this state, a local unit of

 

government, or a land bank fast track authority.

 

     (10)  (8)  As used in this section:  , "local

 

     (a) "Land bank fast track authority" means an authority formed

 

under section 15 or 23 of the land bank fast track act, 2003 PA

 

258, MCL 124.765 and 124.773.

 

     (b) "Local unit of government" means a county, city, village,

 

or township and includes a department or agency of the county,

 

city, village, or township. Local unit of government also includes

 

an economic development corporation established under the economic


 

development corporations act, 1974 PA 338, MCL 125.1601 to

 

125.1636.

 

     Enacting section 1. Sections 78i and 78k of the general

 

property tax act, 1893 PA 206, MCL 211.78i and 211.78k, as amended

 

by this amendatory act apply only to property foreclosed by a

 

judgment of foreclosure entered pursuant to section 78k(5) of the

 

general property tax act, 1893 PA 206, MCL 211.78k, after the

 

effective date of this amendatory act.

 

     Enacting section 2. Enacting section 2 of 2005 PA 183 is

 

repealed.

 

     Enacting section 3. Sections 74, 75, 76, 77, 83, 84, 85, 86,

 

96, 97, 98, 98a, 98b, 99, 101, 102, 103, 127b, 131, 131a, 131b,

 

131c, 131d, 138, 140a, 141, 142, 142a, 143, 144, 156, and 157 of

 

the general property tax act, 1893 PA 206, MCL 211.74, 211.75,

 

211.76, 211.77, 211.83, 211.84, 211.85, 211.86, 211.96, 211.97,

 

211.98, 211.98a, 211.98b, 211.99, 211.101, 211.102, 211.103,

 

211.127b, 211.131, 211.131a, 211.131b, 211.131c, 211.131d, 211.138,

 

211.140a, 211.141, 211.142, 211.142a, 211.143, 211.144, 211.156,

 

and 211.157, are repealed.

 

     Enacting section 4. Section 131e of the general property tax

 

act, 1893 PA 206, MCL 211.131e, as amended by this amendatory act,

 

is retroactive and is effective for all property the title to which

 

vested in this state under section 131e of the general property tax

 

act, 1893 PA 206, MCL 211.131e, after October 25, 1976.

 

     Enacting section 5. This amendatory act is not intended to and

 

shall not be construed to modify or alter the ruling of the

 

Michigan supreme court in Smith v Cliffs on the Bay Condominium


 

Association, docket no. 111587.

 

     Enacting section 6. Section 131e of the general property tax

 

act, 1893 PA 206, MCL 211.131e, is repealed effective December 31,

 

2014.