SENATE BILL No. 973

December 13, 2001, Introduced by Senator BYRUM and referred to the Committee on Finance.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 89 (MCL 211.89), as amended by 1982 PA 503.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 89. (1) Notwithstanding sections 59, 60, 74, 87c, and

2 87d, the following provisions shall apply for the time period

3 prescribed in subsection (3) (2):

4 (a) To the extent not waived pursuant to section 59(3),

5 there shall be added to all delinquent taxes unpaid after March

6 1, interest at the rate of 1.25% per month or fraction of a month

7 from the date the taxes originally become delinquent pursuant to

8 this act, together with a county property tax administration fee

9 equal to 4% of the delinquent taxes or $2.00 per payment of

10 delinquent taxes, whichever is greater, which amounts will

11 SHALL be paid to the county treasurer.

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1 (b) In addition to the expenses specified in section 59,

2 delinquent tax sales shall include a county property tax adminis-

3 tration fee equal to 4% of the delinquent taxes, and interest

4 computed at a rate of 1.5% per month from the date the taxes

5 originally become delinquent pursuant to UNDER this act.

6 (c) The rate of interest to be paid to the treasurer

7 pursuant to UNDER section 74 shall be computed at the rate of

8 1.5% per month or fraction of a month.

9 (d) The maximum interest rate on the notes permitted to be

10 issued by sections 87c and 87d shall be 14.5% per annum.

11 (D) (e) The rate of interest to be paid to the department

12 of treasury pursuant to section 84 shall be computed at the rate

13 of 1.5% per month or fraction of a month.

14 (2) Notwithstanding Act No. 293 of the Public Acts of 1966,

15 as amended, being sections 45.501 to 45.521 of the Michigan

16 Compiled Laws, a county operating pursuant to a home rule charter

17 shall not be restricted by the provisions of the home rule

18 charter in connection with the powers granted to the county to

19 issue notes by sections 87b, 87c, 87d, and this section. The

20 treasurer of such a county, notwithstanding any such charter pro-

21 visions, shall have all of the powers granted to county treasur-

22 ers by sections 87b, 87c, 87d, and this section.

23 (2) (3) Subsection (1) shall apply as follows:

24 (a) In counties with a population of more than 1,500,000, it

25 shall apply immediately except that it shall not apply to any

26 delinquent taxes which THAT became delinquent before March 1,

27 1981, or which become delinquent after February 28, 1983.

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1 (b) In all other counties of this state it shall apply only

2 to the 1981 delinquent taxes which THAT become delinquent on or

3 before March 1, 1982.

4 (4) Notwithstanding the provisions of Act No. 261 of the

5 Public Acts of 1947, as amended, being sections 45.451 to 45.457

6 of the Michigan Compiled Laws, the provisions of section 87c of

7 this act shall control the entitlement of the county treasurer to

8 the fee provided for in section 87c.

9 (5) Notwithstanding the provisions of sections 87c and 87d:

10 (a) Interest on the notes may be payable at any time pro-

11 vided in the resolution, and may be set, reset and/or calculated

12 as provided in the resolution.

13 (b) Notes may be: (i) made the subject of a put or agree-

14 ment to repurchase by the county treasurer; (ii) secured by a

15 letter of credit issued by a bank pursuant to an agreement

16 entered into by the county treasurer or by any other collateral

17 which the resolution may authorize; (iii) callable as set forth

18 in the resolution; and (iv) reissued by the county treasurer once

19 reacquired by the county treasurer pursuant to any put or repur-

20 chase agreement.

21 (c) The county treasurer may by order: (i) authorize the

22 issuance of renewal notes; (ii) refund or refund in advance notes

23 by the issuance of new notes, whether the notes to be refunded

24 have or have not matured; (iii) issue notes partly to refund

25 notes and partly for any other purposes authorized by this act;

26 and (iv) buy and sell any notes so issued.

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1 (d) Renewal, refunding, or advance refunding notes: (i)

2 shall be sold and the proceeds applied to the purchase redemption

3 or payment of the notes to be renewed or refunded; (ii) shall not

4 be subject to the provisions of Act No. 202 of the Public Acts

5 of 1943, as amended, being sections 131.1 to 138.2 of the

6 Michigan Compiled Laws, if the municipal finance commission

7 determines at the time of the original approval of the notes that

8 renewal of the notes shall not need municipal finance commission

9 approval; (iii) may be sold or resold at a public or private sale

10 upon such terms and conditions as the treasurer may establish in

11 the order; and (iv) may pledge the delinquent taxes pledged in

12 the issue to be refunded in advance once the original issue is

13 defeased by the advance refunding issue.

14 (e) Notes may be issued secured by a second lien on delin-

15 quent taxes, interest, and county property tax administration

16 fees already the subject of a first lien because of the issuance

17 of a prior note issue.

18 (f) If the treasurer so authorizes on the order authorizing

19 the notes, any notes issued may be secured in whole or in part

20 pursuant to a trust or escrow agreement which agreement may also

21 govern the issuance of renewal notes, refunding notes, and

22 advance refunding notes. Such agreement may authorize the

23 trustee or escrow agent to make investments of any type autho-

24 rized in the agreement.

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