SB-0322, As Passed Senate, June 22, 2011
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 2008 PA 498.
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 2012 and each year after 2012, 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.
(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. 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).
(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) 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. If the county treasurer collects the summer property
tax levy, interest earned on the other levies reserve fund 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 county 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.
(16) 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.