HOUSE BILL No. 5611

April 28, 2016, Introduced by Rep. Farrington and referred to the Committee on Tax Policy.

 

     A bill to amend 1966 PA 331, entitled

 

"Community college act of 1966,"

 

by amending section 144 (MCL 389.144), as amended by 2003 PA 306.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 144. (1) The board of trustees of each community college

 

district may levy for the purposes specified as within the power of

 

the board a tax that does not exceed the rate previously or

 

subsequently authorized by the qualified electors of the district

 

or the rate derived through the previous adoption by the electors

 

of the district of former 1955 PA 188, or the rate that is

 

allocated to the community college district in accordance with the

 

property tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a.

 

The funds may be used for all purposes authorized, except that to

 

the extent permitted under the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821, taxes imposed for the payment of


principal and interest on bonds or other evidences of indebtedness

 

or for the payment of assessments or contract obligations in

 

anticipation of which bonds are issued may be imposed without

 

limitation as to rate or amount. This limitation may be increased

 

to not more than 5 mills if approved by a majority of the qualified

 

electors voting on the question at a regular or special election of

 

the community college district.

 

     (2) Except as provided in subsection (3), the board of

 

trustees shall determine the total taxes required for any year and

 

shall certify the approved tax rate to be levied and the amount of

 

taxes to be raised to the proper assessing officer of each city and

 

township in which the territory of the community college district

 

is situated on or before September 1 of each year, except that the

 

board of trustees may provide by resolution that taxes to be raised

 

against property within any city or township, any portion of which

 

lies within the community college district boundaries, may be

 

levied and collected in the same manner and at the same time as the

 

city or township taxes or in the same manner and at the same time

 

as school district or intermediate school district taxes are being

 

collected by the city or township under part 26 of the revised

 

school code, 1976 PA 451, MCL 380.1611 to 380.1615.

 

     (3) By resolution of its board on or before May 15 of the year

 

in which it is established, a community college district

 

established under this act between January 1 and May 1 of any

 

calendar year may impose a summer property tax levy of either the

 

total or 1/2 of the community college district property taxes for

 

that tax year. The board resolution shall also determine the total


taxes required for that tax year and certify the approved tax rate

 

to be levied and the amount of taxes to be raised to the proper

 

assessing officer of each city or township in which the territory

 

of the community college district is situated. Upon receipt of that

 

board resolution, each city and township in which the community

 

college district is situated that collects a summer property tax

 

levy under section 1613 of the revised school code, 1976 PA 451,

 

MCL 380.1613, shall collect the summer levy for that year. The

 

reasonable and actual expenses incurred by a city or township in

 

collecting the community college district property taxes under this

 

subsection, to the extent these expenses are in addition to the

 

expense of collecting and assessing any other taxes at the same

 

time and exceed the amount of any fees imposed for the collection

 

of the community college property taxes, shall be billed to and

 

paid by the community college district. For the purposes of this

 

subsection, reasonable and actual expenses shall not exceed the

 

current collection agreements negotiated with the largest

 

intermediate school district within the community college district.

 

This subsection applies until December 31, 1992.

 

     (4) All money collected by a tax collecting officer from the

 

tax levied under this section shall be returned to the community

 

college district as provided by section 43 of the general property

 

tax act, 1893 PA 206, MCL 211.43, or to the county treasurer who

 

shall pay the taxes so returned immediately to the community

 

college district.

 

     (5) The subjects of taxation for the community college

 

district purposes shall be the same as for state, county, and other


school purposes as provided under the general property tax act,

 

1893 PA 206, MCL 211.1 to 211.157.211.155.

 

     (6) Notwithstanding any provision of this act to the contrary,

 

both of the following apply if the board of trustees of a community

 

college district establishes or operates a baccalaureate degree

 

program under section 121:

 

     (a) That board of trustees shall not levy any taxes under this

 

act.

 

     (b) Any taxes previously levied by that board of trustees

 

under this act shall not be collected for or returned to that

 

board's community college district.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 98th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 98.

 

     (b) Senate Bill No.____ or House Bill No. 5612 (request no.

 

05793'16 a).