SENATE BILL No. 280

 

 

March 17, 2011, Introduced by Senators CASWELL, BRANDENBURG, COLBECK, CASPERSON, EMMONS, MEEKHOF, PROOS, GREEN, BOOHER and KAHN and referred to the Committee on Finance.

 

 

 

     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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 56a. (1) If a tax levied on personal property remains

 

uncollected for more than 5 years after that tax becomes

 

delinquent, the township or city treasurer of the local tax

 

collecting unit 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 or township 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 governing body of the

 

local tax collecting unit, 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 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 of the local tax collecting

 

unit 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 local tax

 

collecting unit 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 governing body of the

 

local tax collecting unit, by resolution adopted by a majority of

 

the members elected to and serving, strike those taxes from the tax

 

rolls of the county and township or city local tax collecting unit

 


and of the county in which the local tax collecting unit is

 

located. If a judgment is entered in favor of the township or city,

 

the resolution is adopted under this subsection, all of the

 

following shall occur:

 

     (a) The taxes in the statement shall cease to constitute an

 

asset of the township or city local tax collecting unit, the county

 

in which the township or city local tax collecting unit 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.

 

     (b) The debt created under this act or under any city or

 

township charter of the person assessed for those taxes to the

 

local tax collecting unit shall, from the date of adoption of the

 

resolution under this subsection, assume the status of a debt

 

against which the statute of limitations has run.

 

     (5) The township or city treasurer of the local tax collecting

 

unit shall, not less than 10 days before the date set by the

 

circuit court for of the hearing under subsection (4), 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 governing body of the local tax collecting unit 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.

 

     (6) (7) A copy of the judgment resolution adopted under

 

subsection (4) shall be served upon the county clerk, the clerk of

 

the township or city local tax collecting unit, and the clerk or

 

secretary of each school district located in the township or city

 

local tax collecting unit.

 

     (7) (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.