June 21, 2007, Introduced by Senators CLARKE, HUNTER, GLEASON, BRATER, CLARK-COLEMAN, SCHAUER and SCOTT and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 24c, 44, 53c, 78a, 78g, and 78k (MCL 211.24c,
211.44, 211.53c, 211.78a, 211.78g, and 211.78k), section 24c as
amended by 2003 PA 247, section 44 as amended by 2002 PA 641,
section 53c as added by 1995 PA 74, section 78a as added by 1999 PA
123, section 78g as amended by 2003 PA 263, and section 78k as
amended by 2006 PA 611.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 24c. (1) The assessor shall give to each owner or person
or persons listed on the assessment roll of the property a notice
by first-class mail of an increase in the tentative state equalized
valuation or the tentative taxable value for the year. The notice
shall specify each parcel of property, the tentative taxable value
for the current year, and the taxable value for the immediately
preceding year. The notice shall also specify the time and place of
the meeting of the board of review. The notice shall also specify
the difference between the property's tentative taxable value in
the current year and the property's taxable value in the
immediately preceding year.
(2) The notice shall include, in addition to the information
required by subsection (1), all of the following:
(a) The state equalized valuation for the immediately
preceding year.
(b) The tentative state equalized valuation for the current
year.
(c) The net change between the tentative state equalized
valuation for the current year and the state equalized valuation
for the immediately preceding year.
(d) The classification of the property as defined by section
34c.
(e) The inflation rate for the immediately preceding year as
defined in section 34d.
(f) A statement provided by the state tax commission
explaining the relationship between state equalized valuation and
taxable value. If the assessor believes that a transfer of
ownership has occurred in the immediately preceding year, the
statement shall state that the ownership was transferred and that
the taxable value of that property is the same as the state
equalized valuation of that property.
(g) A statement that an exemption is available under section
7u for those individuals who are unable to pay their property taxes
because of poverty, the eligibility requirements for that
exemption, and how to apply for that exemption.
(3) When required by the income tax act of 1967, 1967 PA 281,
MCL 206.1 to 206.532, the assessment notice shall include or be
accompanied by information or forms prescribed by the income tax
act of 1967, 1967 PA 281, MCL 206.1 to 206.532.
(4) The assessment notice shall be addressed to the owner
according to the records of the assessor and mailed not less than
10 days before the meeting of the board of review. The failure to
send or receive an assessment notice does not invalidate an
assessment roll or an assessment on that property.
(5) The tentative state equalized valuation shall be
calculated by multiplying the assessment by the tentative equalized
valuation multiplier. If the assessor has made assessment
adjustments that would have changed the tentative multiplier, the
assessor may recalculate the multiplier for use in the notice.
(6) The state tax commission shall prepare a model assessment
notice form that shall be made available to local units of
government.
(7) The assessment notice under subsection (1) shall include
the following statement:
"If you purchased your principal residence after May 1 last
year, to claim the principal residence exemption, if you have not
already done so, you are required to file an affidavit before May
1.".
(8) For taxes levied after December 31, 2003, the assessment
notice under subsection (1) shall separately state the state
equalized valuation and taxable value for any leasehold
improvements.
Sec. 44. (1) Upon receipt of the tax roll, the township
treasurer or other collector shall proceed to collect the taxes.
The township treasurer or other collector shall mail to each
taxpayer at the taxpayer's last known address on the tax roll or to
the taxpayer's designated agent a statement showing the description
of the property against which the tax is levied, the taxable value
of the property, and the amount of the tax on the property. The tax
bill shall also include a statement that an exemption is available
under section 7u for those individuals who are unable to pay their
property taxes because of poverty, the eligibility requirements for
that exemption, and how to apply for that exemption. If a tax
statement is mailed to the taxpayer, a tax statement sent to a
taxpayer's designated agent may be in a summary form or may be in
an electronic data processing format. If the tax statement
information is provided to both a taxpayer and the taxpayer's
designated agent, the tax statement mailed to the taxpayer may be
identified as an informational copy. A township treasurer or other
collector electing to send a tax statement to a taxpayer's
designated agent or electing not to include an itemization in the
manner described in subsection (10)(d) in a tax statement mailed to
the taxpayer shall, upon request, mail a detailed copy of the tax
statement, including an itemization of the amount of tax in the
manner described by subsection (10)(d), to the taxpayer without
charge.
(2) The expense of preparing and mailing the statement shall
be paid from the county, township, city, or village funds. Failure
to send or receive the notice does not prejudice the right to
collect or enforce the payment of the tax. The township treasurer
shall remain in the office of the township treasurer at some
convenient place in the township from 9 a.m. to 5 p.m. to receive
taxes on the following days:
(a) At least one business day between December 25 and December
31 unless the township has an arrangement with a local financial
institution to receive taxes on behalf of the township treasurer
and to forward that payment to the township on the next business
day. The township shall provide timely notification of which
financial institutions will receive taxes for the township and
which days the treasurer will be in the office to receive taxes.
(b) The last day that taxes are due and payable before being
returned as delinquent under section 55.
(3) Except as provided by subsection (7), on a sum voluntarily
paid before February 15 of the succeeding year, the local property
tax collecting unit shall add a property tax administration fee of
not more than 1% of the total tax bill per parcel. However, unless
otherwise provided for by an agreement between the assessing unit
and the collecting unit, if a local property tax collecting unit
other than a village does not also serve as the local assessing
unit, the excess of the amount of property tax administration fees
over the expense to the local property tax collecting unit in
collecting the taxes, but not less than 80% of the fee imposed,
shall be returned to the local assessing unit. A property tax
administration fee is defined as a fee to offset costs incurred by
a collecting unit in assessing property values, in collecting the
property tax levies, and in the review and appeal processes. The
costs of any appeals, in excess of funds available from the
property tax administration fee, may be shared by any taxing unit
only if approved by the governing body of the taxing unit. Except
as provided by subsection (7), on all taxes paid after February 14
and before March 1 the governing body of a city or township may
authorize the treasurer to add to the tax a property tax
administration fee to the extent imposed on taxes paid before
February 15 and a late penalty charge equal to 3% of the tax. The
governing body of a city or township may waive interest from
February 15 to the last day of February on a summer property tax
that has been deferred under section 51 or any late penalty charge
for the homestead property of a senior citizen, paraplegic,
quadriplegic, hemiplegic, eligible serviceperson, eligible veteran,
eligible widow or widower, totally and permanently disabled person,
or blind person, as those persons are defined in chapter 9 of the
income tax act of 1967, 1967 PA 281, MCL 206.501 to 206.532, if the
person makes a claim before February 15 for a credit for that
property provided by chapter 9 of the income tax act of 1967, 1967
PA 281, MCL 206.501 to 206.532, if the person presents a copy of
the form filed for that credit to the local treasurer, and if the
person has not received the credit before February 15. The
governing body of a city or township may waive interest from
February 15 to the last day of February on a summer property tax
deferred under section 51 or any late penalty charge for a person's
property that is subject to a farmland development rights agreement
recorded with the register of deeds of the county in which the
property is situated as provided in section 36104 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.36104, if the person presents a copy of the development rights
agreement or verification that the property is subject to a
development rights agreement before February 15. A 4% county
property tax administration fee, a property tax administration fee
to the extent imposed on and if authorized under subsection (7) for
taxes paid before March 1, and interest on the tax at the rate of
1% per month shall be added to taxes collected by the township or
city treasurer after the last day of February and before settlement
with the county treasurer, and the payment shall be treated as
though collected by the county treasurer. If the statements
required to be mailed by this section are not mailed before
December 31, the treasurer shall not impose a late penalty charge
on taxes collected after February 14.
(4) The governing body of a local property tax collecting unit
may waive all or part of the property tax administration fee or the
late penalty charge, or both. A property tax administration fee
collected by the township treasurer shall be used only for the
purposes for which it may be collected as specified by subsection
(3) and this subsection. If the bond of the treasurer, as provided
in section 43, is furnished by a surety company, the cost of the
bond may be paid by the township from the property tax
administration fee.
(5) If apprehensive of the loss of personal tax assessed upon
the roll, the township treasurer may enforce collection of the tax
at any time, and if compelled to seize property or bring an action
in December may add, if authorized under subsection (7), a property
tax administration fee of not more than 1% of the total tax bill
per parcel and 3% for a late penalty charge.
(6) Along with taxes returned delinquent to a county treasurer
under section 55, the amount of the property tax administration fee
prescribed by subsection (3) that is imposed and not paid shall be
included in the return of delinquent taxes and, when delinquent
taxes are distributed by the county treasurer under this act, the
delinquent property tax administration fee shall be distributed to
the treasurer of the local unit who transmitted the statement of
taxes returned as delinquent. Interest imposed upon delinquent
property taxes under this act shall also be imposed upon the
property tax administration fee and, for purposes of this act other
than for the purpose of determining to which local unit the county
treasurer shall distribute a delinquent property tax administration
fee, any reference to delinquent taxes shall be considered to
include the property tax administration fee returned as delinquent
for the same property.
(7) The local property tax collecting treasurer shall not
impose a property tax administration fee, collection fee, or any
type of late penalty charge authorized by law or charter unless the
governing body of the local property tax collecting unit approves,
by resolution or ordinance adopted after December 31, 1982, an
authorization for the imposition of a property tax administration
fee, collection fee, or any type of late penalty charge provided
for by this section or by charter, which authorization shall be
valid for all levies that become a lien after the resolution or
ordinance is adopted. However, unless otherwise provided for by an
agreement between the assessing unit and the collecting unit, a
local property tax collecting unit that does not also serve as the
assessing unit shall impose a property tax administration fee on
each parcel at a rate equal to the rate of the fee imposed for city
or township taxes on that parcel.
(8) The annual statement required by 1966 PA 125, MCL 565.161
to 565.164, or a monthly billing form or mortgagor passbook
provided instead of that annual statement shall include a statement
to the effect that a taxpayer who was not mailed the tax statement
or a copy of the tax statement by the township treasurer or other
collector shall receive, upon request and without charge, a copy of
the tax statement from the township treasurer or other collector
or, if the tax statement has been mailed to the taxpayer's
designated agent, from either the taxpayer's designated agent or
the township treasurer or other collector. A designated agent who
is subject to 1966 PA 125, MCL 565.161 to 565.164, and who has been
mailed the tax statement for taxes that became a lien in the
calendar year immediately preceding the year in which the annual
statement may be required to be furnished shall mail, upon request
and without charge to a taxpayer who was not mailed that tax
statement or a copy of that tax statement, a copy of that tax
statement.
(9) For taxes levied after December 31, 2001, if taxes levied
on qualified real property remain unpaid on February 15, all of the
following shall apply:
(a) The unpaid taxes on that qualified real property shall be
collected in the same manner as unpaid taxes levied on personal
property are collected under this act.
(b) Unpaid taxes on qualified real property shall not be
returned as delinquent to the county treasurer for forfeiture,
foreclosure, and sale under sections 78 to 79a.
(c) If a county treasurer discovers that unpaid taxes on
qualified real property have been returned as delinquent for
forfeiture, foreclosure, and sale under sections 78 to 79a, the
county treasurer shall return those unpaid taxes to the appropriate
local tax collection unit for collection as provided in subdivision
(a).
(10) As used in this section:
(a) "Designated agent" means an individual, partnership,
association, corporation, receiver, estate, trust, or other legal
entity that has entered into an escrow account agreement or other
agreement with the taxpayer that obligates that individual or legal
entity to pay the property taxes for the taxpayer or, if an
agreement has not been entered into, that was designated by the
taxpayer on a form made available to the taxpayer by the township
treasurer and filed with that treasurer. The designation by the
taxpayer shall remain in effect until revoked by the taxpayer in a
writing filed with the township treasurer. The form made available
by the township treasurer shall include a statement that submission
of the form allows the treasurer to mail the tax statement to the
designated agent instead of to the taxpayer and a statement
notifying the taxpayer of his or her right to revoke the
designation by a writing filed with the township treasurer.
(b) "Qualified real property" means buildings and improvements
located upon leased real property that are assessed as real
property under section 2(1)(c), except buildings and improvements
exempt under section 9f, if the value of the buildings or
improvements is not otherwise included in the assessment of the
real property.
(c) "Taxpayer" means the owner of the property on which the
tax is imposed.
(d) When describing in subsection (1) that the amount of tax
on the property must be shown in the tax statement, "amount of tax"
means an itemization by dollar amount of each of the several ad
valorem property taxes and special assessments that a person may
pay under section 53 and an itemization by millage rate, on either
the tax statement or a separate form accompanying the tax
statement, of each of the several ad valorem property taxes that a
person may pay under section 53. The township treasurer or other
collector may replace the itemization described in this subdivision
with a statement informing the taxpayer that the itemization of the
dollar amount and millage rate of the taxes is available without
charge from the local property tax collecting unit.
Sec. 53c. (1) If the July or December board of review denies a
claim for exemption under section 7u, the person claiming the
exemption may appeal that decision to the Michigan tax tribunal
within 30 days of the denial.
(2) If the Michigan tax tribunal determines that the person
claiming an exemption under section 7u is entitled to that
exemption, the Michigan tax tribunal shall enter an order removing
any interest and penalties that have been charged against the
property, including interest and penalties under section 78a or
78g, and awarding actual attorney fees.
Sec. 78a. (1) For taxes levied after December 31, 1998, all
property returned for delinquent taxes, and upon which taxes,
interest, penalties, and fees remain unpaid after the property is
returned as delinquent to the county treasurers of this state under
this act, is subject to forfeiture, foreclosure, and sale for the
enforcement and collection of the delinquent taxes as provided in
section 78, this section, and sections 78b to 79a. As used in
section 78, this section, and sections 78b to 79a, "taxes" includes
interest, penalties, and fees imposed before the taxes become
delinquent and unpaid special assessments or other assessments that
are due and payable up to and including the date of the foreclosure
hearing under section 78k. As used in section 78, this section, and
sections 78b to 79a, "taxes" does not include delinquent water
bills.
(2) On March 1 in each year, taxes levied in the immediately
preceding year that remain unpaid shall be returned as delinquent
for collection. Except as otherwise provided in section 79 for
certified abandoned property, property delinquent for taxes levied
in the second year preceding the forfeiture under section 78g or in
a prior year to which this section applies shall be forfeited to
the county treasurer for the total of the unpaid taxes, interest,
penalties, and fees for those years as provided under section 78g.
(3) A county property tax administration fee of 4% and
interest computed at a noncompounded rate of 1% per month or
fraction of a month on the taxes that were originally returned as
delinquent or, for the principal residence of a low income person,
1/2% per month or fraction of a month on the taxes that were
originally returned as delinquent, computed from the March 1 that
the taxes originally became delinquent, shall be added to property
returned as delinquent under this section. A county property tax
administration fee provided for under this subsection shall not be
less than $1.00.
(4) Any person with an unrecorded property interest or any
other person who wishes at any time to receive notice of the return
of delinquent taxes on a parcel of property may pay an annual fee
not to exceed $5.00 by February 1 to the county treasurer and
specify the parcel identification number, the address of the
property, and the address to which the notice shall be sent.
Holders of any undischarged mortgages wishing to receive notice of
the return of delinquent taxes on a parcel or parcels of property
may provide a list of such parcels in a form prescribed by the
county treasurer and pay an annual fee not to exceed $1.00 per
parcel to the county treasurer and specify for each parcel the
parcel identification number, the address of the property, and the
address to which the notice should be sent. The county treasurer
shall notify the person or holders of undischarged mortgages if
delinquent taxes on the property or properties are returned within
that year.
(5) Upon the request of a holder of a tax lien purchased under
the
Michigan tax lien sale and collateralized securities act,
former
1998 PA 379, MCL
211.921 to 211.941, and payment to
the
county treasurer of the actual costs incurred in complying with
that request, the county treasurer shall provide a list identifying
the parcels of property for which a notice is required under
sections 78 to 78l. The list required under this subsection may be
in a computer generated form or other form.
(6) Notwithstanding any charter provision to the contrary, the
governing body of a local governmental unit that collects
delinquent taxes may establish for any property, by ordinance,
procedures for the collection of delinquent taxes and the
enforcement of tax liens and the schedule for the forfeiture or
foreclosure of delinquent tax liens. The procedures and schedule
established by ordinance shall conform at a minimum to those
procedures and schedules established under sections 78a to 78l,
except that those taxes subject to a payment plan approved by the
treasurer of the local governmental unit as of July 1, 1999 shall
not be considered delinquent as of the following March 1 if
payments are not delinquent under that payment plan.
(7) As used in this section:
(a) "Low income person" means a person who is a member of a
household that has a gross annual income that is equal to or less
than the federal poverty guidelines updated annually in the federal
register by the United States department of health and human
services under authority of section 673 of subtitle B of title VI
of the omnibus budget reconciliation act of 1981, Public Law 97-35,
42 USC 9902.
(b) "Principal residence" means property exempt under section
7cc.
Sec. 78g. (1) Except as otherwise provided in this subsection,
on March 1 in each tax year, certified abandoned property and
property that is delinquent for taxes, interest, penalties, and
fees for the immediately preceding 12 months or more is forfeited
to the county treasurer for the total amount of those unpaid
delinquent taxes, interest, penalties, and fees. If property is
forfeited to a county treasurer under this subsection, the
foreclosing governmental unit does not have a right to possession
of the property until the April 1 immediately succeeding the entry
of a judgment foreclosing the property under section 78k or in a
contested case until 22 days after the entry of a judgment
foreclosing the property under section 78k. If property is
forfeited to a county treasurer under this subsection, the county
treasurer shall add a $175.00 fee to each parcel of property for
which those delinquent taxes, interest, penalties, and fees remain
unpaid. However, the county treasurer shall not add a $175.00 fee
to any parcel that is the principal residence of a low income
person. A county treasurer shall withhold a parcel of property from
forfeiture for any reason determined by the state tax commission.
The procedure for withholding a parcel of property from forfeiture
under this subsection shall be determined by the state tax
commission.
(2) Not more than 45 days after property is forfeited under
subsection (1), the county treasurer shall record with the county
register of deeds a certificate in a form determined by the
department of treasury for each parcel of property forfeited to the
county treasurer, specifying that the property has been forfeited
to the county treasurer and not redeemed and that absolute title to
the property shall vest in the county treasurer 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. If
a certificate of forfeiture is recorded in error, the county
treasurer shall record with the county register of deeds a
certificate of error in a form prescribed by the department of
treasury. A certificate submitted to the county register of deeds
for recording under this subsection need not be notarized and may
be authenticated by a digital signature of the county treasurer or
by other electronic means. If the county has elected under section
78 to have this state foreclose property under this act forfeited
to the county treasurer under this section, the county treasurer
shall immediately transmit to the department of treasury a copy of
each certificate recorded under this subsection. The county
treasurer shall upon collection transmit to the department of
treasury within 30 days the fee added to each parcel under
subsection (1), which may be paid from the county's delinquent tax
revolving fund and shall be deposited in the land reutilization
fund created under section 78n.
(3) Property forfeited to the county treasurer under
subsection (1) may be redeemed at any time 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
upon payment to the county treasurer of all of the following:
(a) The total amount of unpaid delinquent taxes, interest,
penalties, and fees for which the property was forfeited.
(b) In addition to the interest calculated under sections
60a(1) or (2) and 78a(3), additional interest computed at a
noncompounded rate of 1/2% per month or fraction of a month on the
taxes that were originally returned as delinquent, computed from
the March 1 preceding the forfeiture. Additional interest shall not
be added under this subdivision if the property forfeited is the
principal residence of a low income person.
(c) All recording fees and all fees for service of process or
notice.
(4) If property is redeemed by a person with a legal interest
as provided under subsection (3), any unpaid taxes not returned as
delinquent to the county treasurer under section 78a are not
extinguished.
(5) If property is redeemed by a person with a legal interest
as provided under subsection (3), the person redeeming does not
acquire a title or interest in the property greater than that
person would have had if the property had not been forfeited to the
county treasurer, but the person redeeming, other than the owner,
is entitled to a lien for the amount paid to redeem the property in
addition to any other lien or interest the person may have, which
shall be recorded within 30 days with the register of deeds by the
person entitled to the lien. The lien acquired shall have the same
priority as the existing lien, title, or interest.
(6) If property is redeemed as provided under subsection (3),
the county treasurer shall issue a redemption certificate in
quadruplicate in a form prescribed by the department of treasury.
One of the quadruplicate certificates shall be delivered to the
person making the redemption payment, 1 shall be filed in the
office of the county treasurer, 1 shall be recorded in the office
of the county register of deeds, and 1 shall be immediately
transmitted to the department of treasury if this state is the
foreclosing governmental unit. The county treasurer shall also make
a note of the redemption certificate in the tax record kept in his
or her office, with the name of the person making the final
redemption payment, the date of the payment, and the amount paid.
If the county treasurer accepts partial redemption payments, the
county treasurer shall include in the tax record kept in his or her
office the name of the person or persons making each partial
redemption payment, the date of each partial redemption payment,
the amount of each partial redemption payment, and the total amount
of all redemption payments. A certificate and the entry of the
certificate in the tax record by the county treasurer is prima
facie evidence of a redemption payment in the courts of this state.
A certificate submitted to the county register of deeds for
recording under this subsection need not be notarized and may be
authenticated by a digital signature of the county treasurer or by
other electronic means. If a redemption certificate is recorded in
error, the county treasurer shall record with the county register
of deeds a certificate of error in a form prescribed by the
department of treasury. A copy of a certificate of error recorded
under this section shall be immediately transmitted to the
department of treasury if this state is the foreclosing
governmental unit.
(7) If a foreclosing governmental unit has reason to believe
that a property forfeited under this section may be the site of
environmental contamination, the foreclosing governmental unit
shall provide the department of environmental quality with any
information in the possession of the foreclosing governmental unit
that suggests the property may be the site of environmental
contamination.
(8) As used in this section:
(a) "Low income person" means a person who is a member of a
household that has a gross annual income that is equal to or less
than the federal poverty guidelines updated annually in the federal
register by the United States department of health and human
services under authority of section 673 of subtitle B of title VI
of the omnibus budget reconciliation act of 1981, Public Law 97-35,
42 USC 9902.
(b) "Principal residence" means property exempt under section
7cc.
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 determines that the
property subject to foreclosure is the principal residence of a low
income person, the court shall withhold that property from
foreclosure for 1 year. 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.
(11) As used in this section:
(a) "Low income person" means a person who is a member of a
household that has a gross annual income that is equal to or less
than the federal poverty guidelines updated annually in the federal
register by the United States department of health and human
services under authority of section 673 of subtitle B of title VI
of the omnibus budget reconciliation act of 1981, Public Law 97-35,
42 USC 9902.
(b) "Principal residence" means property exempt under section
7cc.