SB-1433, As Passed Senate, November 13, 2008
SUBSTITUTE FOR
SENATE BILL NO. 1433
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78 (MCL 211.78), as added by 1999 PA 123, and
by adding sections 89d and 89e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78. (1) The legislature finds that there exists in this
state a continuing need to strengthen and revitalize the economy of
this state and its municipalities by encouraging the efficient and
expeditious return to productive use of property returned for
delinquent taxes. Therefore, the powers granted in this act
relating to the return of property for delinquent taxes constitute
the performance by this state or a political subdivision of this
state of essential public purposes and functions.
(2) It is the intent of the legislature that the provisions of
this act relating to the return, forfeiture, and foreclosure of
property for delinquent taxes satisfy the minimum requirements of
due process required under the constitution of this state and the
constitution of the United States but that those provisions do not
create new rights beyond those required under the state
constitution of 1963 or the constitution of the United States. The
failure of this state or a political subdivision of this state to
follow a requirement of this act relating to the return,
forfeiture, or foreclosure of property for delinquent taxes shall
not be construed to create a claim or cause of action against this
state or a political subdivision of this state unless the minimum
requirements of due process accorded under the state constitution
of 1963 or the constitution of the United States are violated.
(3) Not later than December 1, 1999, the county board of
commissioners of a county, by a resolution adopted at a meeting
held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and with the written concurrence of the county treasurer
and the county executive, if any, may elect to have this state
foreclose property under this act forfeited to the county treasurer
under section 78g. At any time during December 2004, the county
board of commissioners of a county, by a resolution adopted at a
meeting held pursuant to the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, and with the written concurrence of the county
treasurer and county executive, if any, may do either of the
following:
(a) Elect to have this state foreclose property under this act
forfeited to the county treasurer under section 78g.
(b) Rescind its prior resolution by which it elected to have
this state foreclose property under this act forfeited to the
county treasurer under section 78g.
(4) Beginning January 1, 2009 through March 1, 2009, the
county board of commissioners of a county with a population of not
less than 220,000 according to the most recent federal decennial
census may, by a resolution adopted at a meeting held pursuant to
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and with
the written concurrence of the county treasurer and county
executive, if any, may rescind its prior resolution by which it
elected to have this state foreclose property under this act
forfeited to the county treasurer under section 78g.
(5) (4)
The foreclosure of forfeited
property by a county is
voluntary and is not an activity or service required of units of
local government for purposes of section 29 of article IX of the
state constitution of 1963.
(6) (5)
A county and a local governmental
unit within that
county may enter into an agreement for the collection of property
taxes or the enforcement and consolidation of tax liens within that
local governmental unit. A local governmental unit shall not
establish a delinquent tax revolving fund under section 87b.
(7) (6)
As used in this section and
sections 78a through 157
for purposes of the collection of taxes returned as delinquent:
(a) "Foreclosing governmental unit" means 1 of the following:
(i) The treasurer of a county.
(ii) This state if the county has elected under subsection (3)
to have this state foreclose property under this act forfeited to
the county treasurer under section 78g.
(b) "Forfeited" or "forfeiture" means a foreclosing
governmental unit may seek a judgment of foreclosure under section
78k if the property is not redeemed as provided under this act, but
does not acquire a right to possession or any other interest in the
property.
Sec. 89d. (1) Notwithstanding the provisions of the charter of
a home rule city to the contrary, the city treasurer of an eligible
city shall return to the county treasurer all uncollected
delinquent taxes levied on real property after December 31, 2008 on
the March 1 immediately following the year in which the taxes are
levied.
(2) The city treasurer of an eligible city may return all
uncollected delinquent taxes levied on real property prior to
December 31, 2008 to the county treasurer for collection on March
1, 2010. A city treasurer shall provide written notice to the
county treasurer of his or her intent to return uncollected
delinquent taxes levied prior to December 31, 2008 under this
subsection not later than February 1, 2010. If uncollected
delinquent taxes levied prior to December 31, 2008 are returned to
the county treasurer for collection under this subsection, the
county treasurer shall collect those taxes with taxes returned as
delinquent in 2010.
(3) After the uncollected 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 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, 2009 or special assessments not returned as
delinquent under this section within 15 years after the taxes or
special assessments are levied.
(5) As used in this section:
(a) "Delinquent taxes" or "uncollected delinquent taxes"
includes the following:
(i) Any taxes levied by and payable to the city treasurer in
installments the balance of which remains unpaid on January 1
immediately following the year in which the taxes are levied, and
includes all interest and penalties that accrue after July 31 of
the year in which all taxes billed by the eligible city are levied
if that interest and those penalties remain unpaid on the date the
delinquent taxes are returned to the county treasurer.
(ii) Any liens for unpaid tax and assessment liability acquired
by the eligible city after December 31, 1999 and prior to January
1, 2009 pursuant to provisions contained within the eligible city's
charter.
(b) "Eligible city" means a city with a population of more
than 50,000 and less than 100,000 that is located in a county with
a population of less than 350,000 as determined by the most recent
federal decennial census.
Sec. 89e. (1) Notwithstanding the provisions of the charter of
a home rule city to the contrary, and with the agreement of the
county treasurer, the city treasurer of an eligible city may return
to the county treasurer all uncollected delinquent taxes levied on
personal property after December 31, 2008 on the March 1
immediately following the year in which the taxes are levied.
(2) With the agreement of the county treasurer, the city
treasurer of an eligible city may return all uncollected delinquent
taxes levied on personal property prior to December 31, 2008 to the
county treasurer for collection on March 1 of the year in which the
county treasurer agrees to the return of uncollected delinquent
taxes under this subsection. A city treasurer shall provide to the
county treasurer written notice of his or her intent to return
uncollected delinquent taxes levied prior to December 31, 2008
under this subsection not later than February 1 of the year in
which the county treasurer agrees to the return of uncollected
delinquent taxes under this subsection. If those uncollected
delinquent taxes are returned to the county treasurer for
collection under this subsection, the county treasurer shall
collect those taxes with taxes returned as delinquent in that same
year.
(3) After the uncollected delinquent taxes levied on personal
property are returned to the county treasurer for collection under
this section, the provisions of this act apply for collection of
those taxes.
(4) As used in this section:
(a) "Delinquent taxes" or "uncollected delinquent taxes"
includes any taxes levied by and payable to the city treasurer in
installments the balance of which remains unpaid on January 1
immediately following the year in which the taxes are levied, and
includes all interest and penalties that accrue after July 31 of
the year in which all taxes billed by the city are levied if that
interest and those penalties remain unpaid on the date the
delinquent taxes are returned to the county treasurer.
(b) "Eligible city" means a city with a population of more
than 50,000 and less than 100,000 that is located in a county with
a population of less than 350,000.