HOUSE BILL NO. 5761

April 30, 2020, Introduced by Rep. Lower and referred to the Committee on Local Government and Municipal Finance.

"The general property tax act,"

(MCL 211.1 to 211.155) by adding sections 44e and 78t.

the people of the state of michigan enact:

Sec. 44e. (1) Notwithstanding any provision of this act to the contrary, all of the following apply to the collection of any interest, penalty, fee, or other late charge of any kind that accrues under this act on unpaid taxes levied in 2020 before the date that unpaid taxes levied in 2020 are returned as delinquent under section 78a:

(a) A local tax collecting unit shall not bill or otherwise attempt to collect those late charges except as provided in subdivision (b).

(b) The local tax collecting unit may instead apply to this state for this state's payment of those late charges, subject to all of the following:

(i) The local tax collecting unit must file its application with the county treasurer on the date that unpaid taxes levied in 2020 are returned as delinquent to the county treasurer under section 78a, and the application must be filed together with the local tax collecting unit's return of any delinquent taxes made under section 78a at that time.

(ii) The application must be filed in a form and manner prescribed by the department of treasury. The form provided by the department must, to the greatest extent possible, permit a local tax collecting unit to provide aggregate information about the uncollected late charges while also permitting verification of those charges.

(iii) Upon receipt of the application, the county treasurer must promptly do both of the following:

(A) Verify the amounts sought for any late charges that are included with any unpaid 2020 taxes returned as delinquent.

(B) Forward the application to the department of treasury for its review and, if appropriate, payment as provided in subsection (2).

(2) It is the intent of the legislature that sufficient funds be appropriated from the general fund to the department of treasury for payment to local tax collecting units of the late charges described in subsection (1) by not later than 45 days after the date that unpaid taxes levied in 2020 are returned as delinquent under section 78a.

Sec. 78t. (1) Notwithstanding any provision of this act to the contrary, all of the following apply to the collection of any interest, penalty, fee, or other late charge of any kind that accrues under this act on unpaid taxes levied in 2020 during the 6-month period beginning on the date that unpaid taxes levied in 2020 are returned as delinquent under section 78a:

(a) A county treasurer shall not bill or otherwise attempt to collect those late charges except as provided in subdivision (b).

(b) The county treasurer may instead apply to this state for this state's payment of those late charges, subject to all of the following:

(i) The county treasurer must file its application with the department of treasury promptly upon the expiration of the 6-month period described in this subsection.

(ii) The application must be filed in a form and manner prescribed by the department of treasury. The form provided by the department must, to the greatest extent possible, permit a county treasurer to provide aggregate information about the uncollected late charges while also permitting verification of those charges by the department and, if appropriate, payment as provided in subsection (2).

(2) It is the intent of the legislature that sufficient funds be appropriated from the general fund to the department of treasury for payment to county treasurers of the late charges described in subsection (1) by not later than 45 days after the expiration of the 6-month period described in subsection (1).