Bill Text: MI HB4150 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Property tax; payment and collection; interest rate on uncollected taxes returned to county for collection; provide option to adjust interest rate. Amends sec. 87b of 1893 PA 206 (MCL 211.87b).
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-06-28 - Referred To Committee On Local Government And Elections [HB4150 Detail]
Download: Michigan-2011-HB4150-Engrossed.html
HB-4150, As Passed House, June 23, 2011
SUBSTITUTE FOR
HOUSE BILL NO. 4150
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 87b (MCL 211.87b), as amended by 2002 PA 198.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 87b. (1) The county board of commissioners of any county
may create a delinquent tax revolving fund that, at the option of
the county treasurer, may be designated as the "100% tax payment
fund". Upon the establishment of the fund, all delinquent taxes,
except taxes on personal property, due and payable to the taxing
units in the county, except those units that collect their own
delinquent taxes after March 1 by charter or otherwise, are due and
payable to the county. The primary obligation to pay to the county
the amount of taxes and the interest on the taxes shall rest with
the local taxing units and the state for the state education tax
under the state education tax act, 1993 PA 331, MCL 211.901 to
211.906. If the delinquent taxes that are due and payable to the
county are not received by the county for any reason, the county
has full right of recourse against the taxing unit or to the state
for the state education tax under the state education tax act, 1993
PA 331, MCL 211.901 to 211.906, to recover the amount of the
delinquent taxes and interest at the current monthly interest rate
of
1% per each month or fraction of a month until repaid to the
county by the taxing unit. However, if the county borrows to
provide funds for those payments, the interest rate shall not
exceed the highest interest rate paid on that borrowing. A
resolution or agreement previously executed or adopted to this
effect is validated and confirmed. For delinquent state education
taxes under the state education tax act, 1993 PA 331, MCL 211.901
to 211.906, the county may offset uncollectible delinquent taxes
against collections of the state education tax under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906, received by
the county and owed to this state under this act. The fund shall be
segregated into separate funds or accounts for each year's
delinquent taxes. As used in this subsection, "current monthly
interest rate" means the following:
(a) Before the effective date of the amendatory act that added
this subdivision, 1%.
(b) Beginning on the effective date of the amendatory act that
added this subdivision through December 31, 2016, 0.5%.
(c) Beginning on January 1, 2017, 1%.
(2) If a delinquent tax revolving fund is established, the
county treasurer shall be the agent for the county and, without
further action by the county board of commissioners, may enter into
contracts with other municipalities, this state, or private
persons, firms, or corporations in connection with any transaction
relating to the fund or any borrowing made by the county pursuant
to section 87c or 87d, including all services necessary to complete
this borrowing.
(3) The county treasurer shall pay from the fund any or all
delinquent taxes that are due and payable to the county and any
school district, intermediate school district, community college
district, city, township, special assessment district, this state,
or any other political unit for which delinquent tax payments are
due within 20 days after sufficient funds are deposited within the
delinquent tax revolving fund or, if the county treasurer is
treasurer for a county with a population greater than 1,500,000
persons, within 30 days after sufficient funds are deposited within
the delinquent tax revolving fund. In a county with a delinquent
tax revolving fund where the county does not borrow pursuant to
section 87c or 87d, if the county treasurer does not make payment
of the delinquent taxes to the local units within 10 days after the
completion of county settlement with all local units under section
55, the county shall pay interest on the unpaid delinquent taxes
from the date of actual county settlement at the rate of 12% per
annum for the number of days involved.
(4) Except as provided in subsection (5), the county treasurer
shall pay from the fund directly to a school district its share of
the fund when a single school district exists within a political
unit.
(5) If a local taxing unit has borrowed money in anticipation
of collecting taxes for any school district or other municipality
and the county treasurer has been so notified in writing, the
county treasurer shall pay to the local taxing unit the shares of
the fund for that school district or municipality. For purposes of
this subsection, "local taxing unit" means a city, village, or
township.
(6) The interest charges, penalties, and county property tax
administration fee rates established under this act shall remain in
effect and shall be payable to the county delinquent tax revolving
fund.
(7) Any surplus in the fund may be transferred to the county
general fund by appropriate action of the county board of
commissioners.
(8) A county board of commissioners may borrow money to create
a delinquent tax revolving fund as provided in section 87c or 87d,
or both.
(9) This section shall not supersede section 87 but is an
alternative method for paying delinquent taxes to local units.
However, where this section is used by a county, section 87 shall
not be used.
