Bill Text: MI HB4285 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Property tax; payment and collection; personal liability for unpaid property taxes; clarify. Amends secs. 47 & 89a of 1893 PA 206 (MCL 211.47 & 211.89a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-11-28 - Assigned Pa 189'17 With Immediate Effect [HB4285 Detail]
Download: Michigan-2017-HB4285-Engrossed.html
HB-4285, As Passed House, June 8, 2017
SUBSTITUTE FOR
HOUSE BILL NO. 4285
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 47 and 89a (MCL 211.47 and 211.89a), section
47 as amended by 1994 PA 253 and section 89a as amended by 2008 PA
512.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
47. (1) If a person , firm, or corporation neglects or
refuses
to pay a tax on property assessed to that person, firm, or
corporation,
the township or city treasurer, as the
case may be,
appropriate, shall, or for the state education tax levied 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, the state treasurer may also,
subject to subsection (4), collect the tax by seizing the personal
property
of that person, firm, or corporation in this state, in an
amount sufficient to pay the tax, the fees, and the charges, for
subsequent sale of the property, and no property is exempt. The
treasurer may sell the property seized, in an amount sufficient to
pay the taxes and all charges, at public auction in the place where
seized or in the township or city of which he or she is treasurer
or for the state treasurer, anywhere in the state. The treasurer
shall give public notice of the auction at least 5 days before the
sale by posting written or printed notices in 3 public places in
the township, village, or city where the sale is to be made. The
sale may be adjourned from time to time if the treasurer considers
it necessary. If the property is seized and advertised, the sale
may take place at any time within 6 days after the expiration of
the warrant of sale. If it is necessary to sell personal property
that brings more than the amount of taxes and charges, the balance
shall
be returned to the person , firm, or corporation from whose
possession the property was taken. However, if the state seizes and
sells property and the sale brings more than the amount of the
state education tax and charges due, the state shall distribute the
balance on a pro rata basis to any other local taxing units to
which delinquent personal property taxes on that property remain
unpaid.
If the property so seized under this section cannot be
sold
for want of bidders, and in that case only, the treasurer shall
return a statement of that fact and the tax shall be returned as
unpaid.
(2) Notwithstanding or in lieu of subsection (1), and subject
to subsection (4), the township or city treasurer, in the name of
the township, village, or city, or the state treasurer in the name
of
the state may sue the person , firm, or corporation to whom the
tax is assessed and garnishee any debtor or debtors of that person.
,
firm, or corporation. The tax roll shall
be is prima facie
evidence of the debt sought to be recovered.
(3)
If a person , firm, or corporation having possession of
that
possesses the personal property of any
other another person
,
firm,
or corporation is assessed for that
property and is obliged
to
pay pays the taxes on the property, the person ,
firm, or
corporation
paying the taxes may recover in a
civil action from the
person ,
firm, or corporation for whose
benefit the taxes were paid
,
the money paid with the applicable
interest.
(4) Notwithstanding any other provision in this act or charter
to the contrary, a person is not subject to personal liability for
any unpaid property tax levied on real property unless that person
owned the real property on the tax day for the year in which the
unpaid tax was levied. A person contesting personal liability under
this subsection may raise the issue in an enforcement action in the
trial court regardless of whether the person previously raised the
issue with the local board of review. As used in this subsection,
"trial court" means any district court, probate court, municipal
court, small claims court, appellate court, or other tribunal in
which the issue of personal liability is litigated.
(5) As used in this section, "person" means an individual,
partnership, corporation, association, limited liability company,
or any other legal entity.
Sec. 89a. (1) Notwithstanding the provisions of a charter of a
county adopted pursuant to 1966 PA 293, MCL 45.501 to 45.521, or
the provisions of the charter of a home rule city, to the contrary,
the city treasurer of a city with a population of 600,000 or more
shall return all uncollected delinquent taxes levied on real
property after December 31, 2002 on the March 1 immediately
following the year in which the taxes are levied. For the purposes
of this section, delinquent taxes include all interest and
penalties that accrue after August 15 of the year in which all
taxes billed by the city are levied if that interest and penalty
remain unpaid on the date the delinquent taxes are returned to the
county treasurer.
(2) The city treasurer of a city with a population of 600,000
or more may return all uncollected delinquent taxes levied in 2001,
2002, or 2001 and 2002 to the county treasurer for collection under
this section on March 1, 2004. A city treasurer shall provide the
county treasurer written notice of his or her intent to return
uncollected delinquent taxes levied in 2001 or 2002 under this
subsection not later than February 1, 2004. If uncollected
delinquent taxes levied in 2001 or 2002 are returned to the county
treasurer for collection under this subsection, the county
treasurer shall collect those taxes with taxes returned as
delinquent in 2004.
(3) After the delinquent taxes levied on real property are
returned to the county treasurer for collection under this section,
the provisions of this act apply for collection of those taxes and,
except for taxes levied on or before December 31, 2002, for the
issuance of notes in anticipation of the collection of those taxes.
(4) A judgment entered under section 78k that extinguishes any
lien for unpaid taxes or special assessments does not extinguish
the right of the city to bring an in personam action under this act
or its charter to enforce personal liability for those unpaid taxes
or special assessments. The city may bring an in personam action to
enforce personal liability for unpaid delinquent taxes levied prior
to January 1, 2003 or special assessments not returned as
delinquent under this section within 15 years after the taxes or
special assessments are levied. An in personam action brought under
this act or a city's charter to enforce personal liability for
unpaid taxes is subject to section 47(4).
(5) If a city treasurer returns uncollected delinquent taxes
levied on real property on or before December 31, 2002 to the
county treasurer for collection under this section, the county
treasurer shall remit to the city treasurer after each month the
taxes and interest collected during that month.
Enacting section 1. This amendatory act is retroactive and is
effective for any unpaid property taxes or special assessments
subject to collection under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, on and after the date this amendatory
act is enacted into law. However, this amendatory act is not
intended to affect any final determination, not subject to further
appeal, of personal liability in a proceeding or case decided by
the tax tribunal or a court of this state issued before the date
this amendatory act is enacted into law.
