HOUSE BILL No. 5398

 

March 6, 2014, Introduced by Reps. Bumstead, Brown, Schmidt, Callton, Pscholka, Santana and Potvin and referred to the Committee on Local Government.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

(MCL 211.1 to 211.155) by adding section 78r.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 78r. (1) A foreclosing governmental unit for a county

 

other than this state may acquire property owned by this state, the

 

federal government, or other governmental entity to facilitate the

 

sale of tax reverted property under section 78m. Methods of

 

acquisition may include, but are not limited to, an exchange of

 

property owned by the county for property of approximately equal

 

value that is owned by this state, the federal government, or other

 

governmental entity.

 

     (2) If the foreclosing governmental unit for a county is not

 

this state, an authority may, with the consent of the foreclosing

 


governmental unit, convey real property owned by the authority to

 

the foreclosing governmental unit for no monetary consideration as

 

provided in section 7 of the land bank fast track act, 2003 PA 258,

 

MCL 124.757.

 

     (3) The conveyance of property to a foreclosing governmental

 

unit under subsection (1) or (2), costs incurred by the foreclosing

 

governmental unit relating to that property, and a subsequent sale

 

or transfer of that property by the foreclosing governmental unit

 

shall be deemed to represent a fair exchange of value for value.

 

     (4) A foreclosing governmental unit shall execute and record

 

all documents necessary to effectuate a conveyance under subsection

 

(1) or (2), including, but not limited to, a quitclaim deed or

 

affidavit of jurisdictional transfer. Documents necessary to

 

effectuate a conveyance under subsection (1) or (2) may be recorded

 

with the register of deeds in the county in which the property is

 

located without the payment of a fee.

 

     (5) Property acquired by a foreclosing governmental unit under

 

subsection (1) or (2) shall be offered for sale by the foreclosing

 

governmental unit at a property sale under section 78m(2) and may

 

be offered for sale as a group with 1 or more other parcels under

 

section 78m(2). Property acquired by a foreclosing governmental

 

unit under subsection (1) or (2) may not be conveyed or transferred

 

to this state or a city, village, township, county, or authority

 

under section 78m. Any net proceeds from the sale of property

 

acquired by a foreclosing governmental unit under subsection (1) or

 

(2) shall be deposited into the account designated under section

 

78m(8) as the delinquent tax property sales proceeds for the year

 


in which the property is sold by the foreclosing governmental unit.

 

     (6) As used in this section, "authority" means a land bank

 

fast track authority created under the land bank fast track act,

 

2003 PA 258, MCL 124.751 to 124.774.