SB-0972, As Passed House, December 6, 2012

SUBSTITUTE FOR

SENATE BILL NO. 972

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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, and,

for property returned to the county treasurer for delinquent taxes,

in the year in which the property is returned to the county

treasurer for delinquent taxes only, notice of the fact that as of

Senate Bill No. 972 (S-1) as amended December 4, 2012

March 1 there were delinquent taxes on the property, that those

delinquent taxes were returned to the county treasurer for

collection, and contact information for the county treasurer. [However,

if not later than 2 weeks before the tax bill is finalized, a local tax collecting unit receives from the county notice that previously delinquent taxes on a parcel of property are no longer delinquent, the statement for that property under this subsection is not required to include notice of the fact that as of March 1 there were delinquent taxes on the property, that those delinquent taxes were returned to the county treasurer for collection, and contact information for the county treasurer.] 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 1 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 78a(2).

taxes are due and payable before interest is added under section

44a(5).

(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 taxes are returned as delinquent under section 78a(2)

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 the day

that taxes are returned as delinquent under section 78a(2) 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 day taxes are returned as

delinquent under section 78a(2) 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 taxes are returned as delinquent under section 78a(2), 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 taxes are payable before being returned as delinquent under

section 78a(2) 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, 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.

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.

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.