April 28, 2016, Introduced by Rep. Farrington and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 43 (MCL 211.43), as amended by 1994 PA 253.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 43. (1) The supervisor of each township, immediately upon
authorization to raise money by taxation pursuant to an election
held under section 36 or on or before the November 5 in each year,
shall notify the township treasurer of the amount of the state,
county, school, and public transportation authority taxes as
apportioned to his or her township.
(2) The treasurer, immediately upon authorization to raise
money by taxation pursuant to an election held under section 36 or
on or before the third day immediately preceding the day the taxes
to be collected become a lien, shall give to the county treasurer a
bond running to the county in the actual amount of state, county,
and school taxes, except school taxes collected through a city
treasurer, with sufficient sureties to be approved by the
supervisor of the township and the county treasurer, conditioned
that he or she will pay over to the county treasurer as required by
law all state and county taxes, pay over to the respective school
treasurers all school taxes that he or she collects during each
year of his or her term of office, and duly and faithfully perform
all the other duties of the office of treasurer. If a corporate
surety bond is provided, the bond shall be approved only by the
county treasurer. If the bond is furnished by a surety company
authorized to transact business under the laws of this state, it is
sufficient that the bond is equal to 40% of the amount of state,
county, and school taxes. If the bond is furnished by a surety
company, the premium and cost of the bond given to the county shall
be paid by the county treasurer from the general fund of the county
against which the premium and cost is made a charge. However, the
county treasurer having paid the premium may bill each district
school board afforded protection by the bond that portion of the
premium charge as is allocated to the school taxes and the school
district treasurers shall pay that allocated premium charge as
determined by the county treasurer for the protection of school
taxes from available school district funds. If the county treasurer
and township supervisor determine that the bond of the township
treasurer recorded with the township clerk and on file with the
township supervisor is adequate and sufficient to safeguard the
proper accounting of state, county, and school taxes as required by
law, the township treasurer shall not be required to file with the
county treasurer the bond provided for in this section. The county
treasurer shall deliver to the supervisor on or before the day the
taxes to be collected become a lien a signed statement of approval
of the bond. Upon the receipt of the signed statement and on or
before the day the taxes to be collected become a lien, the
supervisor shall deliver to the township treasurer the tax roll of
this
the township. The county treasurer shall file and safely
keep
the bond in his or her office and shall give to the township
treasurer a receipt stating that the required bond was received,
which receipt the township treasurer shall deliver to the
supervisor on or before the day the taxes to be collected become a
lien. After the delivery of the receipt and on or before the day
the taxes to be collected become a lien, the supervisor shall
deliver to the township treasurer the tax roll of the township.
(3) Except as provided in subsections (4) and (5), tax
collections shall be delivered pursuant to the following schedule:
(a) Within 10 business days after the first and fifteenth day
of each month, the township or city treasurer shall account for and
deliver to the county treasurer the total amount of state and
county tax collections on hand on the first and fifteenth day of
each month; to the school district treasurers the total amount of
school tax collections on hand on the first and fifteenth day of
each month; and to the public transportation authorities the total
amount of public transportation authority tax collections on hand
the first and fifteenth day of each month. If the intermediate
school district and community college district provide for direct
payment pursuant to subsection (9), the township or city treasurer
shall also account for and deliver to the intermediate school
district and the community college district the total respective
amounts of school tax collections on hand the first and fifteenth
day of each month. This subdivision shall not apply to the month of
March.
(b) Within 10 business days after the last day of February,
the township or city treasurer shall account for and deliver to the
county treasurer at least 90% of the total amount of state and
county tax collections on hand on the last day of February; to the
school district treasurers at least 90% of the total amount of
school tax collections on hand on the last day of February; and to
the public transportation authorities at least 90% of the total
amount of public transportation authority tax collections on hand
on the last day of February. If the intermediate school district
and community college district provide for direct payment pursuant
to subsection (9), the township or city treasurer shall also
account for and deliver to the intermediate school district and
community college district at least 90% of the total respective
amounts of school tax collections on hand on the last day of
February.
(c) A final adjustment and delivery of the total amount of tax
collections on hand for the county, community college districts,
intermediate school districts, school districts, and public
transportation authorities shall be made not later than April 1 of
each year.
(4) Instead of following the schedule prescribed in subsection
(3), the township or city serving as the tax collecting unit and
the local governmental unit for which the tax collections are made
may enter into an agreement to establish an alternative schedule
for delivering tax collections.
(5) A township that has a state equalized valuation of
$15,000,000.00 or less shall account for and deliver to the county
treasurer, the school district treasurers, and the public
transportation authorities and, if the intermediate school district
and community college district provide for direct payment pursuant
to subsection (9), the intermediate school district treasurers and
community college treasurers the taxes collected up to and
including January 10, within 10 business days after January 10.
However, a township treasurer subject to this subsection shall at
no time have on hand collections of state, county, community
college, intermediate school district if applicable pursuant to
subsection (9), school district, and public transportation
authority taxes in excess of 25% of the amount of the taxes
apportioned
to the township and, when if
collections on hand reach
this
that percentage, the township treasurer shall immediately
account for and turn over the total amount of state and county tax
collections on hand to the county treasurer, the total respective
amounts of school tax collections on hand to the respective
treasurers, and the total respective amounts of public
transportation authority tax collections on hand to the respective
public transportation authorities. The township treasurer shall
notify the secretary or superintendent of each community college
district, intermediate school district, and school district
applicable and each of the applicable public transportation
authorities of the total amount of taxes paid to the respective
treasurer or authority, which notification shall show the different
funds for which the taxes were collected.
(6)
Except as may be provided under section 1613 of Act No.
451
of the Public Acts of 1976, being section 380.1613 of the
Michigan
Compiled Laws, the revised
school code, 1976 PA 451, MCL
380.1613, when a county treasurer is collecting the school district
or intermediate school district levy, the county treasurer shall
account for and deliver to the appropriate local governmental unit
treasurer the tax collections received by the county treasurer
within 10 business days after the county treasurer receives the
funds.
(7)
The A county treasurer shall account for and deposit in
the county library fund for the use of the county library board,
county tax collections received pursuant to a tax levied under
section
1 of Act No. 138 of the Public Acts of 1917, being section
397.301
of the Michigan Compiled Laws, 1917
PA 138, MCL 397.301,
within 10 business days after the county treasurer receives the
funds.
(8)
The A county treasurer shall account for and deliver to
the boards of each metropolitan transportation authority the county
tax collections for transportation authority purposes received by
the county treasurer within 10 business days after the county
treasurer receives the funds.
(9) For taxes that become a lien in December 1984 or after
1984, an intermediate school district board or the board of
trustees of a community college may provide that a local tax
collecting treasurer shall account for and deliver tax collections
directly to the respective intermediate school district or
community college treasurer pursuant to the schedule contained in
subsections (3), (4), and (5) for delivery of the respective taxes
to the county treasurer. A resolution shall be adopted at least 60
days before the day taxes to be collected become a lien and shall
specify the period for which the resolution is effective. Copies of
the resolution shall be transmitted to each local tax collecting
treasurer and county treasurer within the intermediate school
district or community college district.
(10)
By the fifteenth day of each month, the a county
treasurer shall account for and deliver to the state the
collections
under the state education tax act, Act No. 331 of the
Public
Acts of 1993, being sections 211.901 to 211.906 of the
Michigan
Compiled Laws, 1993 PA 331,
MCL 211.901 to 211.906, on
hand on the last day of the preceding month. By the first day of
each
month, the a county treasurer shall account for and deliver to
the
state the collections under the state education tax act, Act
No.
331 of the Public Acts of 1993, 1993
PA 331, MCL 211.901 to
211.906, on hand on or before the fifteenth day of the immediately
preceding
month. The A county treasurer may retain the interest
earned
on the money collected under Act No. 331 of the Public Acts
of
1993 the state education tax
act, 1993 PA 331, MCL 211.901 to
211.906, while held by the county treasurer, as reimbursement for
the cost incurred by the county in collecting and transmitting the
tax
imposed by that act. The money retained by the a county
treasurer under this section shall be deposited in the treasury of
the county in which the tax is collected to the credit of the
general fund.
(11) A treasurer who willfully neglects or refuses to perform
a duty required by subsections (3) to (8) is subject to the penalty
prescribed in section 119(1).
(12) Except as otherwise provided by subsection (10), interest
earned by a city, township, or county on collections of taxes
levied on or after November 5, 1985 before the tax collections are
accounted for and delivered to the respective taxing units pursuant
to this section shall also be accounted for and delivered to the
respective taxing units on a pro rata basis. Interest earned by a
city, township, or county on collections of taxes levied before
November 5, 1985 before those collections were accounted for and
delivered to the respective taxing units in compliance with the
requirements of this section is not subject to claim and
retroactive collection by those taxing units. However, interest
earned on collections of taxes levied on or after November 5, 1985
and before December 1, 1987 are not subject to claim and
retroactive collection unless a claim has been filed in a court of
competent jurisdiction before March 1, 1988. This subsection does
not apply to interest or penalties imposed by law or charter and
does not nullify or prohibit any agreements made between a
collecting unit and a taxing unit regarding the earned interest.
(13) If there is an agreement for an alternative schedule for
delivering tax collections or for interest earned under subsections
(4) and (12), the collection of the state education tax is subject
to those provisions of that agreement.
(14) Notwithstanding any provision of this act to the
contrary, the collection and return of taxes levied by the board of
trustees of a community college district is subject to the
limitation set forth in section 144(6) of the community college act
of 1966, 1966 PA 331, MCL 389.144.
(15) (14)
As used in this section:
(a) "Metropolitan transportation authority" means an authority
created under the metropolitan transportation authorities act of
1967,
Act No. 204 of the Public Acts of 1967, being sections
124.401
to 124.425 of the Michigan Compiled Laws.1967 PA 204, MCL
124.401 to 124.426.
(b) "Public transportation authority" means an authority
created
under Act No. 55 of the Public Acts of 1963, being sections
124.351
to 124.359 of the Michigan Compiled Laws.1963 PA 55, MCL
124.351 to 124.359.
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. 5611 (request no.
05793'16).