HB-5545, As Passed Senate, April 29, 2004                                   

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5545

                                                                             A bill to amend 1993 PA 331, entitled                                             

"State education tax act,"                                                  

by amending section 5b (MCL 211.905b), as added by 2002 PA 244.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 5b.  (1) This section applies only to a city or                        

2   township, or that portion of a city or township, in which no                

3   property taxes, other than the tax levied under this act or                 

4   village taxes, are levied in the summer of 2003 and any summer              

5   after 2003.                                                                 

6       (2) A city or township shall collect the tax levied under                   

7   this act unless, before November 1, 2002, the legislative body of           

8   the city or township adopts a resolution declining to collect the           

9   tax levied under this act and, for a township, the treasurer                

10  concurs in writing with that resolution.  Before November 1,                

11  2002, if the city or township adopts a resolution declining to              

1   collect the tax under this act and, for a township, the treasurer           

2   concurs in writing with that resolution, the appropriate                    

3   assessing officer shall send a copy of that resolution and, for a           

4   township, that concurrence to the state treasurer and the                   

5   treasurer of the county in which the city or township is                    

6   located.  In January 2004 and each January thereafter, the                  

7   legislative body of a city or township that has declined to                 

8   collect the tax under this subsection may by resolution adopted             

9   by a majority of the legislative body rescind the earlier                   

10  decision to decline to collect the tax.  The city or township               

11  shall immediately send a copy of the resolution rescinding the              

12  earlier decision to decline to collect the tax to the state                 

13  treasurer and the treasurer of the county in which the city or              

14  township is located.  If a city or township collects the tax                

15  levied under this act pursuant to this section,  this state shall           

16  transmit to  that city or township shall retain $2.50 for each              

17  parcel of property in that city or township on which the tax                

18  levied under this act is  collected billed under this section              

19  from the tax collected under this act before transmitting the tax           

20  collected as provided in this act.                                          

21      (3) A county that receives a copy of a resolution declining                 

22  to collect the tax under this act and, for a township, a written            

23  concurrence as provided in subsection (2) shall collect the tax             

24  levied under this act pursuant to this section unless, before               

25  February 1, 2003, the county board of commissioners adopts a                

26  resolution declining to collect the tax levied under this act and           

27  the county treasurer concurs in writing with that resolution.               

1   Before February 1, 2003, if the county board of commissioners               

2   adopts a resolution declining to collect the tax under this act             

3   and the county treasurer concurs in writing with that resolution,           

4   the county treasurer shall send a copy of that resolution and               

5   that concurrence to the state treasurer.  In February 2004 and              

6   each February thereafter, a county board of commissioners that              

7   has declined to collect the tax under this subsection may by                

8   resolution, with the written concurrence of the county treasurer,           

9   rescind the earlier decision to decline to collect the tax.  The            

10  county treasurer shall immediately send a copy of the resolution            

11  rescinding the earlier decision to decline to collect the tax and           

12  the written concurrence of the county treasurer to the state                

13  treasurer.  If a county collects the tax levied under this act              

14  pursuant to this section,  this state shall transmit to  that               

15  county shall retain $2.50 for each parcel for property in that              

16  county on which the tax levied under this act is  collected

17  billed under this section from the tax collected under this act             

18  before transmitting the tax collected under this act to the state           

19  treasurer as provided in this act.                                          

20      (4) If a city or township does not collect the tax levied                   

21  under this act pursuant to subsection (2) and if a county does              

22  not collect the tax levied under this act pursuant to subsection            

23  (3), the state treasurer shall collect the tax under the                    

24  provisions of the general property tax act.  The collection of              

25  the tax levied under this act is not subject to 1941 PA 122,                

26  MCL 205.1 to 205.31.  The tax levied under this act collected               

27  pursuant to this subsection is subject to a 1% administration               

1   fee.                                                                        

2       (5) All of the following apply to the collection of the tax                 

3   levied under this act by a county treasurer or the state                    

4   treasurer:                                                                  

5       (a) Not later than June 1, the township or city for which the               

6   tax is being collected shall deliver to the county treasurer or             

7   the state treasurer, as applicable, a certified copy of each                

8   assessment roll for taxable property located in the township or             

9   city.  Each assessment roll shall include the taxable value of              

10  each parcel subject to the collection of the tax levied under               

11  this act.  The county treasurer or state treasurer, as                      

12  applicable, shall remit the necessary cost incident to the                  

13  reproduction of the assessment roll to the township or city.                

14      (b) Not later than June 30, the county treasurer or the state               

15  treasurer, as applicable, shall spread the millage levied under             

16  this act against the assessment roll and prepare the tax roll.              

17      (c) The county treasurer or the state treasurer, as                         

18  applicable, may impose all or a portion of the fees and charges             

19  authorized under section 44 of the general property tax act, 1893           

20  PA 206, MCL 211.44, on taxes paid before March 1.  The county               

21  treasurer or the state treasurer, as applicable, shall retain the           

22  fees and charges imposed under this subdivision regardless of               

23  whether all or part of the fees and charges have been waived by             

24  the township or city.                                                       

25      (6) In relation to the assessment, spreading, and collection                

26  of taxes pursuant to this section, a county treasurer or the                

27  state treasurer, as applicable, shall have powers and duties                

1   similar to those prescribed by the general property tax act for             

2   township supervisors, township clerks, and township treasurers.             

3   However, this section shall not be considered to transfer any               

4   authority over the assessment of property.                                  

5       (7) A county treasurer or state treasurer collecting taxes                  

6   pursuant to this section shall be bonded for tax collection in              

7   the same amount and in the same manner as a township treasurer              

8   would be for undertaking the duties prescribed by this section.             

9       (8) If a county treasurer or the state treasurer collects the               

10  tax levied under this act pursuant to this section, all payments            

11  from this state for collecting the tax levied under this act in a           

12  summer levy, and all revenue generated by the administration fee,           

13  shall be deposited in a restricted account designated as the                

14  "state education tax collection account".  The county treasurer             

15  or the state treasurer, as applicable, shall direct the                     

16  investment of the account.  The county treasurer or the state               

17  treasurer, as applicable, shall credit to the account interest              

18  and earnings from the account investments.  Proceeds in that                

19  account shall only be used for the cost of collecting the tax               

20  levied under this act.  For a county collecting the tax under               

21  this act, the county board of commissioners shall appropriate               

22  sufficient money from the account to the county treasurer to                

23  cover the cost of collecting the tax levied under this act.                 

24      (9) The tax levied under this act that is collected by a city               

25  pursuant to this section on a date other than a date it collects            

26  city taxes shall be subject to the same fees and charges a city             

27  may impose under section 44 of the general property tax act, 1893           

1   PA 206, MCL 211.44, except that a city may impose the                       

2   administration fee on the tax levied under this act that is                 

3   billed in the summer even if the fee is not imposed on taxes                

4   billed in December.  The tax levied under this act that is                  

5   collected pursuant to this section on or before September 14 of             

6   each year by a city that collects school taxes on a date other              

7   than the date it collects city taxes shall be without interest,             

8   but the tax levied under this act that is collected after                   

9   September 14 in each year shall bear interest at the rate imposed           

10  by section 59 of the general property tax act, 1893 PA 206,                 

11  MCL 211.59, on delinquent property tax levies that become a lien            

12  in the same year.  All interest and penalties that are imposed              

13  prior to the date the tax levied under this act is returned as              

14  delinquent, other than the administration fee, shall be                     

15  transmitted to the state treasurer for deposit into the state               

16  school aid fund established in section 11 of article IX of the              

17  state constitution of 1963.  If imposed, the administration fee             

18  shall be retained by the city.                                              

19      (10) The tax levied under this act that is collected by a                   

20  township on or before September 14 in each year shall be without            

21  interest.  The tax levied under this act that is collected after            

22  September 14 of any year shall bear interest at the rate imposed            

23  by section 59 of the general property tax act, 1893 PA 206,                 

24  MCL 211.59, on delinquent property tax levies that become a lien            

25  in the same year.  The tax levied under this act that is                    

26  collected by a township is subject to the same fees and charges             

27  the township may impose under section 44 of the general property            

1   tax act, 1893 PA 206, MCL 211.44, except that a township may                

2   impose the administration fee on the tax levied under this act              

3   that is billed in the summer even if the fee is not imposed on              

4   taxes billed in December.  All interest and penalties that are              

5   imposed prior to the date the tax levied under this act is                  

6   returned delinquent, other than the administration fee, shall be            

7   transmitted to the state treasurer for deposit into the state               

8   school aid fund established in section 11 of article IX of the              

9   state constitution of 1963.  If imposed, the administration fee             

10  shall be retained by the township.                                          

11  (11) Not later than June 1 of each year, the county treasurer               

12  shall deliver to the state treasurer a statement of the total               

13  amount of the state education tax levy of the prior year not                

14  returned delinquent that was collected by the county treasurer              

15  and collected and remitted to the county treasurer by each city             

16  or township treasurer, together with a statement for the county             

17  and for each city or township of the number of parcels from which           

18  the state education tax was collected, the number of parcels for            

19  which the state education tax was billed, and the total amount              

20  retained by the county treasurer and by the city or township                

21  treasurer as permitted by subsections (2) and (3).