June 17, 2008, Introduced by Reps. Walker, Palsrok, LaJoy and Booher and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 56a (MCL 211.56a), as amended by 1998 PA 435,
and by adding section 20.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20. If the total amount of taxable value in all
statements submitted under section 19 is less than $4,000.00, a
local tax collecting unit may by resolution elect not to collect
taxes levied on that personal property.
Sec. 56a. (1) If a tax levied on personal property remains
uncollected
for more than 5 2 years after that tax becomes
delinquent, the township or city treasurer shall prepare a
statement showing all of the following:
(a) The taxes levied upon personal property that remain
unpaid.
(b) The names of the persons against whom those taxes were
assessed.
(c) The amount assessed against each person that remains
uncollected, together with all fees, penalties, and interest due
under this act or under a city charter.
(2) The original copy of the statement prepared pursuant to
subsection (1) shall be filed with the circuit court of the county
in which the township or city is located together with a petition.
Two or more township or city treasurers may file a joint petition
under this section.
(3) The petition shall state all of the following:
(a) That the taxes upon personal property as shown in the
statement
have remained unpaid for more than 5 2 years after they
were returned to the county treasurer as delinquent.
(b) That the taxes have remained delinquent despite the fact
that the township or city treasurer or his or her predecessors in
office exercised due diligence in an effort to collect the taxes.
(c) The taxes are, to the township or city treasurer's best
knowledge and information, uncollectible.
(4) The petition shall request that a date, not less than 30
nor more than 45 days after the date of filing the petition, be set
for a hearing on the petition and that the court enter a judgment
in favor of the township or city, striking those taxes from the tax
rolls of the county and township or city. If a judgment is entered
in favor of the township or city, the taxes in the statement shall
cease to constitute an asset of the township or city, the county in
which the township or city is located, and any school district or
other taxing entity in which the personal property was located at
the time it was assessed for taxes.
(5) The township or city treasurer shall, not less than 10
days before the date set by the circuit court for the hearing,
notify the county treasurer and the clerk or secretary of any
school district in which any personal property may have been
located at the time it was assessed for taxes that a petition was
filed with the circuit court under this section, that the statement
required under this section was prepared, and the date set for the
hearing on the petition.
(6) Within 15 days after the hearing on the petition, the
court shall enter a judgment that as to all items or personal taxes
set forth in the statement of uncollected taxes filed with the
court for which the township or city treasurer and his or her
predecessors in office have exercised due diligence in an effort to
collect the taxes upon that personal property, those taxes shall be
stricken from the tax rolls of the county and of the township or
city and shall cease to constitute an asset of the township or
city, the county in which the township or city is located, and any
school district in which the personal property was located at the
time it was assessed for taxes, and that the debt created by the
provisions of this act or by any city charter of the person
assessed for those taxes to the township or city shall, from the
date of entry of the judgment, assume the status of a debt against
which the statute of limitations has run.
(7) A copy of the judgment shall be served upon the county
clerk, the clerk of the township or city, and the clerk or
secretary of each school district located in the township or city.
(8) In a county in which the county treasurer collects
delinquent personal property taxes as provided in section 56, the
county treasurer shall undertake and carry out all of the
proceedings to strike delinquent personal property taxes from the
county tax rolls as provided in this section.