HB-4984, As Passed House, May 24, 2016HB-4984, As Passed Senate, May 24, 2016
October 13, 2015, Introduced by Rep. Barrett and referred to the Committee on Tax Policy.
A bill to amend 2003 PA 260, entitled
"Tax reverted clean title act,"
by amending section 5 (MCL 211.1025), as amended by 2012 PA 222.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Except as otherwise provided in section 5a, there
is levied upon every owner of eligible tax reverted property a
specific tax to be known as the eligible tax reverted property
specific tax.
(2) The amount of the eligible tax reverted property specific
tax in each year is the amount of tax that would have been
collected on that parcel under the general property tax act, 1893
PA 206, MCL 211.1 to 211.155, if that parcel was not exempt under
section 3. An owner of eligible tax reverted property that is a
principal residence may claim an exemption for that portion of the
specific tax attributable to the tax levied by a local school
district for school operating purposes to the extent provided under
section 1211 of the revised school code, 1976 PA 451, MCL 380.1211,
if an owner of that eligible tax reverted property claims or has
claimed an exemption for the property as provided in section 7cc of
the general property tax act, 1893 PA 206, MCL 211.7cc.
(3)
Except as otherwise provided in section 6, the The
eligible tax reverted property specific tax shall be assessed,
collected,
and disbursed
, and assessed in accordance with this
act.
(4) The eligible tax reverted property specific tax is an
annual tax, payable at the same times, in the same installments,
and to the same officer or officers as taxes imposed under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155, and
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
are payable. The eligible tax reverted property specific tax is
subject to the same collection fee and interest as taxes imposed
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155. Except as otherwise provided in this section, the officer
or officers shall disburse the eligible tax reverted property
specific tax payments received by the officer or officers each year
as follows:
(a) Fifty percent of the eligible tax reverted property
specific tax to and among this state and cities, townships,
villages, school districts, counties, or other taxing units, at the
same times and in the same proportions as required by law for the
disbursement of taxes collected under the general property tax act,
1893 PA 206, MCL 211.1 to 211.155.
(b) Fifty percent of the eligible tax reverted property
specific tax to the authority that sold or otherwise conveyed the
property under the land bank fast track act, 2003 PA 258, MCL
124.751 to 124.774, which sale or conveyance caused the property to
be eligible tax reverted property. The eligible tax reverted
property specific tax disbursed under this subdivision shall only
be used by the authority for 1 or more of the following:
(i) For the purposes authorized under the land bank fast track
act, 2003 PA 258, MCL 124.751 to 124.774, including, but not
limited to, costs to clear, quiet, or defend title to property held
by the authority.
(ii) To repay a loan made to the authority under section 2f of
1855 PA 105, MCL 21.142f.
(5) For intermediate school districts receiving state aid
under sections 56, 62, and 81 of the state school aid act of 1979,
1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, of the amount of
eligible tax reverted property specific tax that would otherwise be
disbursed to an intermediate school district, all or a portion, to
be determined on the basis of the tax rates being utilized to
compute the amount of state aid, shall be paid to the state
treasury to the credit of the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(6) The amount of eligible tax reverted property specific tax
described in subsection (2) that would otherwise be disbursed to a
local school district for school operating purposes shall be paid
instead to the state treasury and credited to the state school aid
fund established by section 11 of article IX of the state
constitution of 1963.
(7) The officer or officers shall send a copy of the amount of
disbursement made to each unit under this section to the commission
on a form provided by the commission.
(8) Eligible tax reverted property located in a renaissance
zone under the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681 to 125.2696, is exempt from the eligible tax reverted
property specific tax levied under this act to the extent and for
the
duration provided pursuant to under
the Michigan renaissance
zone act, 1996 PA 376, MCL 125.2681 to 125.2696, except for that
portion of the eligible tax reverted property specific tax
attributable to a tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff. The eligible tax
reverted property specific tax calculated under this subsection
shall be disbursed proportionately to the taxing unit or units that
levied the tax described in section 7ff(2) of the general property
tax act, 1893 PA 206, MCL 211.7ff.
(9) The eligible tax reverted property specific tax levied
under this section becomes a lien on the eligible tax reverted
property assessed on the same date that a tax becomes a lien on
real property under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155. A lien for the eligible tax reverted property
specific tax includes any applicable collection fee or interest. A
lien under this subsection continues until paid.
(10) If the county treasurer consents, any unpaid eligible tax
reverted property specific tax and any applicable collection fee or
interest shall be returned as delinquent to the county treasurer at
the same time taxes are returned as delinquent under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155. Except as
otherwise provided in this subsection, eligible tax reverted
property subject to an eligible tax reverted property specific tax
returned as delinquent is subject to forfeiture, foreclosure, and
sale at the same time and in the same manner as property subject to
delinquent taxes under the general property tax act, 1893 PA 206,
MCL 211.1 to 211.155. If an eligible tax reverted property specific
tax or any applicable collection fee or interest for an eligible
tax reverted property has not been paid for 2 or more years on the
date the eligible tax reverted property is returned as delinquent
under this subsection, the eligible tax reverted property shall be
forfeited to the county treasurer upon its return and is subject to
foreclosure and sale at the same time and in the same manner as
other property forfeited under the general property tax act, 1893
PA 206, MCL 211.1 to 211.155.