December 1, 2009, Introduced by Senator BROWN and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1899 PA 188, entitled
"Michigan estate tax act,"
by amending section 3 (MCL 205.203), as amended by 2004 PA 539.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) The tax and the interest on the tax provided for
in
this act shall become are a
lien upon the property transferred
until paid, unless payment of the tax has been deferred as
permitted by this section or section 2d. If a deferral of payment
is granted under this section or section 2d, the lien provided by
this
section shall attach attaches
at the end of the deferral
period granted by this section or section 2d.
(2) The person to whom the property is transferred and the
administrator,
executor, and personal
representative or trustee of
every
estate transferred , shall be is personally liable for the
tax
until its payments; it is
paid, except that the executor or
administrator
shall is not be personally liable for the tax upon a
reversion
or remainder consisting of real estate where if the
election provided for in section 7 or the deferral in this section
or
section 2d is made. The tax shall be paid to the this state.
(3) When the inheritance tax, administration fee, and penalty
and
interest, if applicable, for the estate are paid, the revenue
commissioner
state treasurer shall provide notice, on a form
prescribed by the department, to the judge of probate who shall
file
and preserve it in that office. It shall be A notice provided
under this subsection is a voucher in settlement of the accounts of
the
executor, administrator, personal
representative or trustee of
the estate upon which the tax is paid. The preparation and mailing
of
the receipts shall do not prejudice the right of the this state
to a review of the determination fixing the tax. The receipts
issued under this section shall show whether the amount paid is a
payment of the tax upon any beneficial interest or upon the entire
transfer.
An executor, administrator, A
personal representative or
trustee of an estate, in settlement of which a tax is due under
this act, shall not be discharged and the estate or trust closed by
a
decree of the court, unless there is produced a receipt signed by
the
revenue commissioner state
treasurer is produced.
(4)
All taxes imposed by this act shall accrue and be are
due
and payable at the time of transfer, which is the date of death,
except that taxes upon the transfer of any estate, property, or
interest limited, conditioned, dependent, or determinable upon the
happening of a contingency or future event, by reason of which the
clear market value cannot be ascertained at the time of the
transfer,
shall accrue and become are due
and payable when the
persons
or corporations beneficially entitled shall come into
actual possession or enjoyment.
(5) The tax and the interest on the tax provided for in this
act
may be deferred for reasonable cause shown by the executor,
administrator,
personal representative or trustee of the estate of
a decedent who was a professional artist at the date of his or her
death for not more than 10 years without penalty or interest. The
executor,
administrator, personal
representative or trustee of the
estate may make the deferral provided by this subsection by filing
an affidavit with the judge of probate, which shall be made in the
time and manner and with the content prescribed by the judge of
probate. The judge of probate shall determine whether there is
reasonable cause shown to grant a deferral, the length of time for
the deferral, and the manner of payment of the tax.
(6)
A proceeding An action to enforce a lien against any
property
under this act shall be instituted by information, a
complaint
in the name of the people of this state ,
addressed to
filed with the circuit court for the county in which the property
is
situated. It The complaint
shall be signed by the attorney
general and need not be otherwise verified. A person owning the
property or an interest in the property as shown by the record in
the office of the register of deeds, or by the records of the
probate
court, at the time of the commencement of the proceedings,
the action is commenced shall be made a party to the action, and
all
any other persons having person who has a right or interest in
the
property , may make
themselves parties to intervene
in the
proceeding
action, on motion to the court , and notice to
complainant
the attorney general, and may file their an intervening
or
cross-claims, cross-complaint
or answers claiming the benefit of
cross-claims,
an answer with a cross-claim and notices of a notice
lis
pendens therein in the
action. Intervening or cross-claims An
intervening or cross-claim shall be made on oath.
(7)
The information A
complaint filed under subsection (6)
shall
show state the name of the deceased, the date of death, the
place of residence at the time of death, the county in which the
estate was probated, the description of the property transferred,
whether by will or under the intestate laws, and against which the
lien exists, the name of the person or persons to whom it was
transferred, the amount of taxes determined by the probate court
upon
the transfer, the date of the determination, and whether the
property is owned by the person or persons to whom it was
transferred by will or under the intestate laws or by a subsequent
purchaser,
naming that and the name of any subsequent purchaser.
The
information complaint shall also show state that
the taxes
determined upon the transfer of the property have not been paid and
the
amount of interest due upon the date of the filing of the
information is filed.
In those cases in which If
the property upon
which the lien exists is owned by the person or persons to whom it
was
transferred by will or under the intestate laws, the petition
for
relief complaint shall be request that the court
determine the
amount
due, ; that
the defendant pay to the county treasurer of the
county , in which the estate was probated, for and in behalf
of
this
state, whatever sum shall appear to be the amount due ,
together
with and the
costs of the proceeding, and that in default
of
that payment the property upon which the lien exists ,
may be
sold
in the manner provided in this act
, to satisfy the taxes,
interest,
and cost costs.
(8)
In those cases in which If
the property upon which the
lien
exists is owned by a subsequent purchaser, the petition for
relief
complaint filed under
subsection (6) shall be request that
the court determine the amount due and that the property upon which
the
lien exists may be sold in the manner provided in this act to
satisfy
the taxes, interest, and costs of the proceeding action.
(9)
The information A complaint
filed under subsection (6) may
contain
other and further allegations and petitions considered
requests that are material and permitted by the rules and practice
of the court.
(10) A certified copy of the order of determination of the
inheritance
tax , for
which the lien exists, certified by either
the judge or register of probate of the court that determined the
tax
or by the revenue commissioner state
treasurer, may be attached
to
the information a
complaint filed under subsection (6). When
If
attached,
the copy shall be considered is
a part of the information
complaint
and shall be is prima
facie evidence of the determination
of the inheritance tax and the accruing of the lien against the
property.
A certificate of the revenue commissioner state treasurer
stating that the inheritance tax, or any part of the tax determined
upon the transfer of the property upon which the lien exists, has
not
been paid, may be attached to the information complaint.
When
If
attached, the certificate shall be
considered is a part of the
information
complaint and shall be is prima facie evidence of
the
nonpayment of the amount of the tax and interest shown to be unpaid
by the certificate.
(11)
If an infant, insane, or otherwise mentally incompetent
person
a minor or a legally
incapacitated individual has an
interest in the property upon which the lien exists, service of
process shall be made upon that person in the same manner and with
the
same effect as upon persons a
person who is not under a
disability,
whether the infant, insane, or otherwise mentally
incompetent
person minor or legally incapacitated
individual is
within or without the jurisdiction.
(12)
After the issuing and service of process against the
infant,
insane, or otherwise incompetent person, a minor or legally
incapacitated individual, a guardian ad litem may be appointed for
the
infant, insane, or otherwise incompetent person minor or
legally incapacitated individual by the court upon motion of the
attorney general, or the guardian ad litem may be appointed by the
court
upon the request of the infant, and in the case of an insane
or
otherwise incompetent person, at the request of the person's
general
guardian minor or a guardian
of the legally incapacitated
individual.
(13)
If upon the hearing of the cause an action filed under
subsection (6) it appears that the inheritance taxes or interest,
or both, upon the transfer of the property upon which the lien
exists
have not been paid, the court shall decree order the
amount
of
taxes and interest on the taxes found determined to be due,
together with costs to be determined by the court, to be paid by
the person or persons owning the property, or any interest in the
property,
within 3 months after the entry of the decree order and
that
in default of payment that the property upon which the lien
exists , be sold to satisfy the taxes, interest, and costs.
If it
appears that the person or persons to whom the property was
transferred
the property by will or under the intestate laws have
parted
with transferred their interest before the institution of
the
proceedings provided for in this section, action was commenced
and that the property is owned by a subsequent purchaser, the court
shall
decree order that the property be sold to satisfy the taxes,
interest, and costs, unless the owner satisfies the taxes,
interest,
and costs within 3 months after the entry of the decree
order.
(14)
In cases in which it appears that If 2 or more pieces or
parcels of land were transferred by will or under the intestate
laws
to 1 person , and
that that person, before the institution of
the
proceedings provided for in this section, has parted with a
complaint was filed under subsection (6), transferred any or all of
the
pieces or parcels of land, and that if the court in the action
can ascertain from the order of determination the amount of
inheritance tax determined upon the transfer of each piece or
parcel,
and that if the lien against all of the pieces or parcels
is
being foreclosed in 1 proceeding, the court may decree order the
sale of that piece or parcel to satisfy the amount of tax
determined
upon the transfer of that piece or parcel, together with
the
interest thereon on the
tax and pro rata costs of the
proceeding. A piece or parcel of property shall not be sold to
satisfy taxes, interest, and costs within 3 months after the entry
of
the decree order.
(15)
If the a person or persons owning the property ordered to
be
sold under this section or an interest
in the property, or the
person's
heirs , executors, administrators, or personal
representative,
or a person lawfully claiming under that
the
person, within 6 months after the date of the sale, redeems the
entire
premises sold , by
paying to the register of deeds in whose
office
the deed is deposited recorded, as provided by subsection
(20),
for the benefit of the purchaser , or the
purchaser's
executors,
administrators, personal
representative or assigns the
sum
which amount that was bid on the date of sale, with interest ,
at
the rate of 6%, together with the sum of $1.00 $10.00 as
a fee
for the care and custody of the redemption money, and the fee paid
by
the purchaser for recording his or her deed, then the deed is
void. If a distinct lot or parcel separately sold is redeemed
leaving
a portion of the premises unredeemed, then the deed shall
be
is void only as
to the parcel or parcels redeemed.
(16)
The A register of deeds shall not determine the amount
necessary for redemption under subsection (15). The purchaser shall
attach
an affidavit with to the deed to be recorded that states the
exact amount required to redeem the property under subsection (15),
including
any daily per diem amounts. , and the date by which the
property
must be redeemed shall be stated in the certificate of the
commissioner
or other person making the sale. The
purchaser may
include in the affidavit the name of a designee responsible on
behalf of the purchaser to assist the person redeeming the property
in computing the exact amount required to redeem the property. The
designee may charge a fee as stated in the affidavit and may be
authorized
by the purchaser to receive redemption funds money.
The
purchaser shall accept the amount computed by the designee.
(17)
If it appears to the court in
an action filed under
subsection (6) determines, after the expiration of 3 months from
the
date of entry of the decree order
in the action, from a
certificate
of the state of Michigan to whom the taxes, interest,
penalties,
and costs were to be paid, the
state treasurer attached
to
a petition of motion by the attorney general for an order of
sale
of the property, that the same taxes,
interest, penalties, and
costs have not been paid, the court shall enter an order directing
the
circuit court commissioner, a
court officer or some other
person
duly authorized by the order of the court, to sell the
property.
The sale shall be at a public vendue venue between the
hours of 9 a.m. and 6 p.m. at the courthouse or at another place as
ordered
by the court, directs,
within 60 days after the date of the
order
and on the date specified on in
the order. The court may, if
necessary,
by further later order adjourn the sale. from time to
time.
The circuit court commissioner, The
officer or other person
authorized
to make the sale , may,
if bids are not received equal
to
the amount of taxes, interest, and costs, adjourn the sale, from
time
to time, but the sale shall not be
adjourned for more than 60
days at any 1 time.
(18)
Upon receipt of a certified copy of the an order of sale
entered
under subsection (17), the circuit
court commissioner,
officer
or other person duly authorized
by the order of the court
to
conduct the sale , shall
publish notice of the sale in some
newspaper printed in the county or another paper as ordered by the
court, may
direct, once in each per week , for 3 successive
weeks.
in
succession. If the sale is
adjourned by order of the court , or
by
the circuit court commissioner, officer
or other person duly
authorized
by the order of the court , to
conduct the sale, the
same
publication shall be had of the
order or notice adjourning the
sale
as is provided in this section for publishing shall be
published in the same manner as the order of sale. Proof of
publication shall be filed with the court before the sale.
(19)
The circuit court commissioner, officer
or other person
authorized to make the sale shall make and file a report of the
sale.
The report shall be entitled in the court and cause, action
and shall be certified and filed with the court.
(20)
Deeds shall thereupon be executed by the circuit court
commissioner
On the sale
of property under subsection (18), the
officer or other person making the sale shall execute a deed,
specifying the names of the parties in the action, the date of the
determination of the inheritance tax, the name of the deceased, the
county
in which the estate was probated, with a description of the
premises, and the amount for which each parcel of land described
was
sold. The commissioner, officer
or other person making the sale
,
shall indorse upon each the deed
the date when the deed shall
will
become operative , if the premises are not redeemed according
to
law. The deed or deeds, as As
soon as practicable and within 20
days
after the sale, the deed shall be deposited recorded with
the
register of deeds of the county in which the land described is
situated, and the register shall indorse on the deed the time the
deed
was received, shall record the deed at length in a book to be
provided
for in his or her office for that purpose it, and shall
index
the deed it in the regular general index of deeds records.
The fees for recording the deed shall be paid by the purchaser and
be
included among with the
other costs and expenses. If the
premises
or a parcel of the premises shall be redeemed, the
register
of deeds shall write on the face of the record the word
"Redeemed",
stating at what date the entry is made and signing the
entry
with his or her official signature. Unless
the premises
described
in the deed, or a parcel of the premises , is redeemed
within
the time limited for redemption, as provided in this
section,
the deed shall thereupon as to all parcels not redeemed,
become
becomes operative as
to all parcels not redeemed and shall
vest
vests in the grantee named in the deed , and
the grantee's
heirs
or assigns all the right, title, and interest therein which
in the premises that the person or persons received either from the
deceased
by reason of the transfer to them by will or under the
intestate laws, or as subsequent purchasers.
(21)
The proceeds of each sale provided for in under this
section shall be paid to the treasurer of the county where the
estate
was probated , to be
applied to the discharge of the tax,
interest,
penalty, and costs. , and if If there is any surplus, it
shall be brought into court for the use of the defendant, or the
person entitled to the money, subject to the order of the court.
(22)
The circuit court commissioner, officer
or other person
authorized
by the court to make the a
sale , shall be under this
section is entitled to only the following fees:
(a) For attending and adjourning a sale, $1.00. ;
for
(b)
For attending and making a sale, $1.50. ;
mileage,
(c)
For mileage, 1 way, 10 cents per mile. ;
(d) For executing a deed or deeds on real estate sales, 25
cents
for each deed necessarily executed.
;
(e) For making and filing a report of sale, $1.00.
(23) The cost of publishing any legal notices required to be
published
under this section shall be at the rate of 70 cents per
folio
for the first insertion , and 35
cents per folio for each
subsequent insertion.
(24) The fees which are provided for in this act
shall be
added
by the circuit court commissioner, officer or other person
duly
authorized to make the sale , of the property to the tax,
interest, penalties, and costs awarded by the court as charges
against the land.
(25) (23)
The amount stated in any affidavits
recorded under
this section shall be the amount necessary to satisfy the
requirements for redemption under this section.