TAX COLLECTING AGREEMENTS                                                                     H.B. 5160:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5160 (as reported without amendment)

Sponsor:  Representative Amanda Price

House Committee:  Local Government

Senate Committee:  Local Government and Elections

CONTENT

The bill would amend Public Act 160 of 1972, which allows units and subdivisions of government to enter into agreements, to allow a city, township, or village to enter into an agreement with the treasurer of the county in which the municipality was located for the county treasurer to administer some or all of the municipality's tax collection functions. Before taking effect, the agreement would have to be approved by the governing body of the city, township, or village and by the county's board of commissioners.

An agreement under the bill would have to provide for all of the following:

-- A description of the tax collection functions to be administered by the county treasurer.

-- The agreement's effective date and term of operation.

-- The employer of personnel and staff needed for administration of the tax collection functions by the county treasurer under the agreement.

-- That funds of the city, village, or township would remain funds of that municipality while the county treasurer administered tax collection functions on its behalf.

-- The manner in which any property, facilities, equipment, or data of the city, village, or township required to execute the agreement would be made available to and used by the county treasurer.

-- Payment for services provided under the agreement, including providing for the county treasurer to retain local property tax administration fees collected by the treasurer.

-- Other legal, financial, and administrative arrangements necessary to facilitate and effectuate the agreement.

Before taking effect, the agreement would have to be filed with the county clerk and the State Treasurer.

MCL 211.731                                                           Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  9-26-14                                                         Fiscal Analyst:  David Zin

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.