Bill Text: MI HB4882 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Property tax; delinquent taxes; interest imposed on delinquent taxes in distressed communities; revise. Amends sec. 78h of 1893 PA 206 (MCL 211.78h) & adds sec. 78q.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2014-12-31 - Assigned Pa 499'14 With Immediate Effect 2014 Addenda [HB4882 Detail]
Download: Michigan-2013-HB4882-Engrossed.html
HB-4882, As Passed House, September 9, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 4882
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78h (MCL 211.78h), as amended by 2001 PA 96,
and by adding section 78q.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78h. (1) Not later than June 15 in each tax year, the
foreclosing governmental unit shall file a single petition with the
clerk of the circuit court of that county listing all property
forfeited and not redeemed to the county treasurer under section
78g to be foreclosed under section 78k for the total of the
forfeited unpaid delinquent taxes, interest, penalties, and fees.
If available to the foreclosing governmental unit, the petition
shall include the street address of each parcel of property set
forth in the petition. The petition shall seek a judgment in favor
of the foreclosing governmental unit for the forfeited unpaid
delinquent taxes, interest, penalties, and fees listed against each
parcel of property. The petition shall request that a judgment be
entered vesting absolute title to each parcel of property in the
foreclosing governmental unit, without right of redemption.
(2) If property is redeemed after the petition for foreclosure
is filed under this section, the foreclosing governmental unit
shall request that the circuit court remove that property from the
petition for foreclosure before entry of judgment foreclosing the
property under section 78k.
(3) The foreclosing governmental unit may withhold the
following property from the petition for foreclosure filed under
this section:
(a) Property the title to which is held by minor heirs or
persons who are incompetent, persons without means of support, or
persons unable to manage their affairs due to age or infirmity,
until a guardian is appointed to protect that person's rights and
interests.
(b) Property the title to which is held by a person undergoing
substantial financial hardship, as determined under a written
policy developed and adopted by the foreclosing governmental unit.
The foreclosing governmental unit shall make available to the
public the written policy adopted under this subdivision. The
written policy adopted under this subdivision shall include, but is
not limited to, all of the following:
(i) The person requesting that the property be withheld from
the petition for foreclosure holds the title to the property.
(ii) The household income total household resources of the
person requesting that the property be withheld from the petition
for foreclosure meets the federal poverty income standards as
defined and determined annually by the United States office of
management and budget or alternative guidelines adopted by the
foreclosing governmental unit, provided that the alternative
guidelines include all persons who would otherwise meet the federal
poverty income standards under this subparagraph. As used in this
subparagraph,
"household income" "total
household resources" means
that term as defined in section 508 of the income tax act of 1967,
1967 PA 281, MCL 206.508.
(c) Property the title to which is held by a person subject to
a delinquent property tax installment payment plan under section
78q.
(4) If a foreclosing governmental unit withholds property from
the petition for foreclosure under subsection (3), a taxing unit's
lien for taxes due or the foreclosing governmental unit's right to
include the property in a subsequent petition for foreclosure is
not prejudiced.
(5) The clerk of the circuit court in which the petition is
filed shall immediately set the date, time, and place for a hearing
on the petition for foreclosure, which hearing shall be held not
more than 30 days before the March 1 immediately succeeding the
date the petition for foreclosure is filed.
Sec. 78q. (1) Notwithstanding any provision of this act or
charter to the contrary, a foreclosing governmental unit may create
a delinquent property tax installment payment plan for eligible
property, the title to which is held by a financially distressed
person.
(2) If a financially distressed person agrees to participate
in a delinquent property tax installment payment plan created under
subsection (1) and makes the initial payment required under that
delinquent property tax installment payment plan, the foreclosing
governmental unit may remove eligible property the title to which
is held by that financially distressed person from the petition for
foreclosure as provided in section 78h(3)(c).
(3) If a financially distressed person successfully completes
a delinquent property tax installment payment plan created under
subsection (1), interest under section 78g(3)(b) and any additional
interest otherwise applicable shall be waived.
(4) If a financially distressed person does not successfully
complete a delinquent property tax installment payment plan created
under subsection (1), both of the following shall occur:
(a) Interest under section 78g(3)(b) and any additional
interest otherwise applicable shall apply.
(b) The eligible property shall be included in the immediately
succeeding petition for foreclosure under section 78h.
(5) As used in this section:
(a) "Eligible property" means property exempt as a principal
residence under section 7cc.
(b) "Financially distressed person" means a person who meets
all of the following conditions:
(i) Is eligible to have property to which he or she holds title
withheld from a petition for foreclosure under section 78h(3)(b).
(ii) Is not delinquent in satisfying a delinquent property tax
installment payment plan under this section for any other property
within the foreclosing governmental unit.
