HOUSE BILL No. 6077

 

December 3, 2014, Introduced by Rep. Irwin and referred to the Committee on Tax Policy.

 

     A bill to amend 1986 PA 196, entitled

 

"Public transportation authority act,"

 

by amending section 18 (MCL 124.468), as amended by 2006 PA 175.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 18. (1) A public authority formed under this act may levy

 

a tax on all of the taxable property within the limits of the

 

public authority for public transportation purposes as authorized

 

by this act.

 

     (2) The tax authorized in subsection (1) shall not exceed 5

 

mills of the state equalized valuation on each dollar of assessed

 

valuation of taxable property within the limits of the applicable

 

public authority.

 

     (3) The tax authorized under subsection (1) shall not be

 

levied except upon the approval of a majority of the registered

 


electors residing in the public authority affected and qualified to

 

vote and voting on the tax at a general or special election. The

 

election may be called by resolution of the board of the public

 

authority. The recording officer of the public authority shall file

 

a copy of the resolution of the board calling the election with the

 

clerk of each affected county, city, or township not less than 60

 

days before the date of the election. The resolution calling the

 

election shall contain a statement of the proposition to be

 

submitted to the electors. Each county, city, and township clerk

 

and all other county, city, and township officials shall undertake

 

those steps to properly submit the proposition to the electors of

 

the county, city, and township at the election specified in the

 

resolutions of the public authority. The election shall be

 

conducted and canvassed in accordance with the Michigan election

 

law, 1954 PA 116, MCL 168.1 to 168.992, except that if the public

 

authority is located in more than 1 county, the election shall be

 

canvassed by the state board of canvassers. The results of the

 

election shall be certified to the board of the public authority

 

promptly after the date of the election. Not more than 1 election

 

may be held in a public authority in a calendar year for approval

 

of the tax authorized under subsection (1). If the election is a

 

special election, the public authority in which the election is

 

held shall pay its share of the costs of the election.

 

     (4) Except as otherwise provided in this subsection, the taxes

 

authorized by this section may be levied at a rate and for a period

 

of not more than 5 10 years as determined by the public authority

 

in the resolution calling the election and as set forth in the

 


proposition submitted to the electors. Taxes may be levied at a

 

rate and for a period of not more than 25 years as determined by

 

the public authority in the resolution calling the election and as

 

set forth in the proposition submitted to the electors if the

 

public authority seeking the levy is seeking the levy for public

 

transit services that include a fixed guideway project authorized

 

under 49 USC 5309.

 

     (5) The tax rate authorized by this section shall be levied

 

and collected as are all ad valorem property taxes in the state and

 

the recording officer of the public authority shall at the

 

appropriate times certify to the proper tax assessing or collecting

 

officers of each tax collecting county, city, and township the

 

amount of taxes to be levied and collected each year by each

 

county, city, and township. Consistent with subsection (6), the

 

board of the public authority shall determine on which tax roll, if

 

there be more than 1, of each county, city, or township that the

 

taxes authorized by this section shall be collected. Each tax

 

assessing and collecting officer and each county treasurer shall

 

levy and collect the taxes certified by the public authority and

 

pay those taxes to the public authority by the time provided in

 

section 43 of the general property tax act, 1893 PA 206, MCL

 

211.43. The tax rate authorized by this section may be first levied

 

by the public authority as a part of the first tax roll of the

 

appropriate counties, cities, and townships occurring after the

 

election described in subsection (3). The tax may be levied and

 

collected on the July or December tax roll next following the date

 

of election, if the tax is certified to the proper tax assessing

 


officials not later than May 15 or September 15, respectively, of

 

the year in which the election is held.

 

     (6) A public authority which that is authorized to impose a

 

July property tax levy, and if it determines to do so, it shall

 

negotiate agreements with the appropriate cities and townships for

 

the collection of that levy. If a city or township and the public

 

authority fail to reach an agreement for the collection by the city

 

or township of the July property tax levy of the public authority,

 

the public authority then may negotiate, until April 1, a proposed

 

agreement with the county treasurer to collect its July property

 

tax levy against property located in that city or township. If the

 

county treasurer and the public authority fail to reach an

 

agreement for the collection by the county of the July property tax

 

levy of the public authority, the July property tax levy shall be

 

collected with the December property tax levy. Any agreement

 

negotiated under this subsection shall guarantee the collecting

 

unit its reasonable expenses. The provisions of this This

 

subsection shall does not apply to a city or township which that is

 

levying a July property tax.

 

     (7) If, pursuant to under subsection (6), the public authority

 

has reached a proposed agreement with a county treasurer on the

 

collection of its July property tax levy against property located

 

in a city or township with which an agreement to collect this the

 

levy could not be made pursuant to under subsection (6), the public

 

authority shall notify by April 15 that city or township of the

 

terms of that fact and the city or township shall have 15 days in

 

which to exercise an option to collect the public authority's July

 


property tax levy.

 

     (8) Collection of all or part of a public authority's property

 

tax levy by a treasurer pursuant to under subsection (6) or (7)

 

shall comply with all of the following:

 

     (a) Collection shall be either 1/2 or the total of the

 

property tax levy against the properties, as specified for that

 

year in the resolution of the public authority.

 

     (b) The amount the public authority has agreed to pay as

 

reasonable collection expenses shall be stated in writing and

 

reported to the state treasurer.

 

     (c) 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.

 

     (d) Taxes shall be collected on or before September 14 and all

 

taxes and interest imposed pursuant to under subdivision (f) unpaid

 

before March 1 shall be returned as delinquent on March 1. Taxes

 

delinquent under this subdivision shall be collected pursuant to

 

under the general property tax act, 1893 PA 206, MCL 211.1 to

 

211.157.211.155.

 

     (e) Interest shall be added to taxes collected after September

 

14 at that rate imposed by section 59 of the general property tax

 

act, 1893 PA 206, MCL 211.59, on delinquent property tax levies

 

which that became a lien in the same year.

 

     (f) All or a portion of fees or charges, or both, authorized

 

under section 44 of the general property tax act, 1893 PA 206, MCL

 

211.44, may be imposed on taxes paid before March 1 and shall be

 

retained by the treasurer actually performing the collection of the

 


July property tax levy of the public authority, regardless of

 

whether all or part of these fees or charges, or both, have been

 

waived by the township or city.

 

     (9) An agreement for the collection of a July property tax

 

levy of a public authority with a county treasurer shall include a

 

schedule for delivering collections to the public authority.

 

     (10) To the extent applicable and consistent with the

 

requirements of this section, the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.157, shall apply 211.155, applies to

 

proceedings in relation to the assessment, spreading, and

 

collection of taxes pursuant to under this section. Additionally,

 

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

 

pursuant to under this section, the county treasurer shall have

 

powers and duties similar to those prescribed by the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, for

 

township supervisors, township clerks, and township treasurers.

 

However, this section shall does not be considered to transfer any

 

authority over the assessment of property.

 

     (11) If a county treasurer collects the July property tax levy

 

of the public authority, the township or city shall deliver by June

 

1 a certified copy of the assessment roll containing state

 

equalized valuations for each parcel of taxable property in the

 

township or city to the treasurer collecting the July property tax

 

levy of the public authority. The county treasurer receiving this

 

certified copy of the assessment roll shall remit the necessary

 

cost incident to the reproduction of the assessment roll to the

 

township or city.

 


     (12) A county treasurer collecting taxes pursuant to under

 

this section shall be bonded for tax collection in the same amount

 

and in the same manner as a township treasurer would be for

 

undertaking the duties prescribed by this section.

 

     (13) An agreement for the collection of a July property tax

 

levy between a public authority and a county may cover July

 

collections for 2 years. If an agreement covers July collections

 

for 2 years, the notice required by subsection (7) and the option

 

to reconsider provided by subsection (7) shall do not apply for

 

July collections in the second year.

 

     (14) If collections are made pursuant to under this section by

 

a county treasurer, all payments from a public authority for

 

collecting its July property tax levy and all revenues generated

 

from collection fees shall be deposited, when received or

 

collected, in a fund, which fund shall be used by the county

 

treasurer to pay for the cost of collecting the public authority's

 

July property tax levy.