SB-0322, As Passed House, May 30, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 322

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 44a (MCL 211.44a), as amended by 2011 PA 126.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 44a. (1) Notwithstanding any other statutory or charter

provision to the contrary, beginning in 2005 and each year after

2005, a county shall impose as a summer property tax levy that

portion of the number of mills allocated to the county by a county

tax allocation board or authorized for the county through a

separate tax limitation vote as provided in this section. The

treasurer that collects the state education tax shall collect the

summer property tax levy under this section. The portion of the

total number of mills allocated to a county by a county tax

allocation board or authorized for a county through a separate tax

limitation vote that shall be imposed in each year as a summer

property tax levy under this section is as follows:

     (a) In 2005, 1/3 of the total number of mills allocated to the

county by a county tax allocation board or authorized for the

county through a separate tax limitation vote.

     (b) In 2006, 2/3 of the total number of mills allocated to the

county by a county tax allocation board or authorized for the

county through a separate tax limitation vote.

     (c) In 2007 and each year after 2007, the total number of

mills allocated to the county by a county tax allocation board or

authorized for the county through a separate tax limitation vote.

     (2) Notwithstanding any other statutory or charter provision

to the contrary, beginning in 2013 and each year after 2013, a

millage that is levied by any taxing authority within a local tax

collecting unit that had been previously billed and collected as

part of the winter property tax levy in a preceding tax year may be

accelerated and collected earlier in that tax year as a summer

property tax levy if all of the following conditions are satisfied:

     (a) The aggregate amount of the revenue from the levy and

collection of all individual millages that would be levied and

collected in the winter tax bill totals $100.00 or less per

individual tax bill, excluding any property tax administration fee.

A millage may be accelerated and collected earlier for only those

tax bills that total $100.00 or less for all individual millages

and that millage may be levied and collected as a winter property

tax levy for all other tax bills that total more than $100.00 for

all individual millages. Any additional millage approved to be

levied by any taxing authority after collection of the summer

property tax levy shall be collected as part of a winter property

tax levy as provided in this act.

     (b) A resolution authorizing the summer collection is approved

by all of the following:

     (i) The county board of commissioners.

     (ii) The legislative body of the local tax collecting unit.

     (iii) The county tax allocation board, if any.

     (c) Within 60 days of approval of the resolutions required

under subdivision (b), the local tax collecting unit notifies all

owners of property on the tax roll that if the aggregate amount of

the revenue from the levy and collection of all individual millages

that would be levied and collected in the winter tax bill totals

$100.00 or less, excluding any property tax administration fee,

those millages will be accelerated and collected as a summer

property tax levy.

(3) (2) Before June 30 and in conformance with the procedures

prescribed by this act, the taxes being collected as a summer

property tax levy shall be spread in terms of millages on the

assessment roll, the amount of tax levied shall be assessed in

proportion to the taxable value, and a tax roll shall be prepared

that commands the appropriate treasurer to collect on July 1 the

taxes indicated as due on the tax roll.

(4) (3) Taxes authorized to be collected shall become a lien

against the property on which assessed, and due from the owner of

that property on July 1.

(5) (4) All taxes and interest imposed pursuant to this

section that are unpaid before March 1 shall be returned as

delinquent on March 1 and collected pursuant to this act.

(6) (5) Interest shall be added to taxes collected after

September 14 at that rate imposed by section 78a on delinquent

property tax levies that became a lien in the same year. However,

if September 14 is on a Saturday, Sunday, or legal holiday, the

last day taxes are due and payable before interest is added is on

the next business day and interest shall be added to taxes that

remain unpaid on the immediately succeeding business day. The tax

levied under this act that is collected with the city taxes shall

be subject to the same penalties, interest, and collection charges

as city taxes and shall be returned as delinquent to the county

treasurer in the same manner and with the same interest, penalties,

and fees as city taxes.

(7) (6) All or a portion of the fees or charges, or both,

authorized under section 44 may be imposed on taxes paid before

March 1 and shall be retained by the treasurer actually performing

the collection of the summer property tax levy pursuant to this

section, regardless of whether all or part of these fees or

charges, or both, have been waived by the township or city.

(8) (7) Collections shall be remitted to the county for which

the taxes were collected pursuant to section 43.

(9) (8) To the extent applicable and consistent with the

requirements of this section, this act shall apply to proceedings

in relation to the assessment, spreading, and collection of taxes

pursuant to this section.

(10) (9) Each county shall establish a restricted fund known

as the revenue sharing reserve fund. The total amount required to

be placed in the revenue sharing reserve fund for each county shall

equal the amount of that county's December 2004 property tax levy

of the total number of mills allocated to the county by a county

tax allocation board or authorized for the county through a

separate tax limitation vote, less any amount of tax levy captured

and used under a tax increment financing plan under 1975 PA 197,

MCL 125.1651 to 125.1681; the tax increment finance authority act,

1980 PA 450, MCL 125.1801 to 125.1830; the local development

financing act, 1986 PA 281, MCL 125.2151 to 125.2174; or the

brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651

to 125.2672, and shall be deposited in the revenue sharing reserve

fund as provided in this section. Revenues credited to the revenue

sharing reserve fund from the December tax levy of a county with a

fiscal year ending December 31 shall be accrued to the fiscal year

ending in the year of that December property tax levy. Revenue

shall be credited to the fund by each county as follows:

     (a) From the county's December 2004 property tax levy, 1/3 of

the total December levy of the total number of mills allocated to

the county by a county tax allocation board or authorized for the

county through a separate tax limitation vote, less any amount of

tax levy captured and used under a tax increment financing plan

under 1975 PA 197, MCL 125.1651 to 125.1681; the tax increment

finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830; the

local development financing act, 1986 PA 281, MCL 125.2151 to

125.2174; or the brownfield redevelopment financing act, 1996 PA

381, MCL 125.2651 to 125.2672.

     (b) From the county's December 2005 property tax levy, 1/2 of

the remaining balance required to be deposited in the fund.

     (c) From the county's December 2006 property tax levy, the

balance required to be deposited in the fund.

(11) (10) All of the following apply to a revenue sharing

reserve fund established under subsection (9):(10):

     (a) Funds in the revenue sharing reserve fund may not be

expended in any fiscal year except as provided in this section.

     (b) Funds in the revenue sharing reserve fund may be used

within a county fiscal year for cash flow purposes at the

discretion of the county.

     (c) Interest earnings on funds deposited in the revenue

sharing reserve fund shall be credited to the revenue sharing

reserve fund. However, the county is not required to reimburse the

revenue sharing reserve fund for a reduction of interest earnings

that occurs because funds in the revenue sharing reserve fund were

used for cash flow purposes.

     (d) The revenue sharing reserve fund shall be separately

reported in the annual financial report required under section 4 of

1919 PA 71, MCL 21.44.

(12) (11) For a county fiscal year that ends on December 31,

2004, a county may expend in that fiscal year an amount not to

exceed the payments made to that county under the Glenn Steil state

revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921,

in October and December 2003 and, if the payment is accrued back to

the county's 2003 fiscal year, February 2004.

(13) (12) Not later than March 1, 2005, a county that receives

a payment in October 2004 as provided in a bill making

appropriations to the department of treasury for the 2004-05 fiscal

year shall pay the amount of that payment to the state treasurer

from the revenue sharing reserve fund. A county that does not make

the payment required under this subsection shall not make any

expenditures from the fund provided under subsection (13).

(14) (13) For each fiscal year of a county that begins after

September 30, 2004, a county may expend from the revenue sharing

reserve fund an amount not to exceed the total payments made to

that county under the Glenn Steil state revenue sharing act of

1971, 1971 PA 140, MCL 141.901 to 141.921, in the state fiscal year

ending September 30, 2004, adjusted annually by the inflation rate,

without regard to any executive orders issued after May 17, 2004.

As used in this subsection, "inflation rate" means that term as

defined in section 34d.

     (15) A county’s required 2012 revenue sharing reserve fund

balance shall be reduced by an amount equal to the amount of county

allocated property tax the county had to refund for the 2004 tax

year due to a single court judgment, if the refund of 2004 county

allocated tax due to that judgment was at least 70% of the county’s

2011 allowable withdrawal from its revenue sharing reserve fund.

The refund amount shall include the interest the county paid on the

2004 property tax refund.

     (16) If a resolution authorizing a summer property tax levy

for a tax previously billed as part of the winter property tax levy

is approved under subsection (2), the treasurer that collects the

summer property tax levy shall establish a restricted fund to be

known as the other levies reserve fund for any millage collected

that was previously billed as part of the winter property tax levy.

Any millage that had been previously billed and collected as part

of the winter property tax levy in a preceding tax year that is

accelerated and collected earlier as a summer property tax levy

shall be deposited into the other levies reserve fund. The

treasurer that collects the summer property tax levy shall

distribute to the local taxing authorities the revenues credited to

the other levies reserve fund from the summer property tax

collection of a millage that had been previously billed and

collected as part of a winter property tax levy on December 1 of

the tax year that the December property tax levy would otherwise

have been due and payable. If a millage previously billed and

collected as part of the winter property tax levy is accelerated

and collected earlier as a summer property tax levy, and if the

millage collected in that summer property tax levy is less than

that millage would have been if levied as part of the immediately

succeeding winter property tax levy, the treasurer that collected

the summer property tax levy may issue a supplemental winter tax

bill for the deficiency or, if approved by a resolution of the

legislative body of the local unit that collected the summer

property tax levy, pay any deficiency from that local unit's

general fund. The treasurer collecting the summer property tax levy

shall account for interest earned on the other levies reserve fund

and interest shall be transmitted to the various local tax

collecting units in proportion to the revenue collected from a

millage previously billed and collected as part of the winter

property tax levy in a preceding tax year that is accelerated and

collected earlier as a summer property tax levy, after a deduction

of reasonable expenses incurred by the treasurer in administering

the accounting and disbursement of funds, to the extent that those

expenses are in addition to the expenses of accounting and

disbursing other taxes.

     (17) The treasurer that collects the state education tax shall

collect the summer property tax levy under this section.

     Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 323 of the 96th Legislature is enacted into

law.