RECOVERY OF RECORDING FEES                                                                     S.B. 737:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 737 (as reported without amendment)

Sponsor:  Senator Peter MacGregor

Committee:  Banking and Financial Institutions

CONTENT

The bill would amend the revenue Act to allow the State Treasurer, or his or her authorized representative, to recover recording or filing fees in the sale of property to satisfy a tax deficiency.

The Act allows the State Treasurer, or his or her authorized representative, to cause a demand to be made on a taxpayer for the payment of a tax, unpaid account, or amount due the State, or any of its departments or agencies. If the liability remains unpaid for 10 days after the demand, the State Treasurer may issue a warrant, and may levy on all property and rights to property belonging to the taxpayer or on which a lien is provided for the amount of the deficiency. The property may be sold for the payment of the amount due, the cost of executing the warrant, and additional penalties and interest. The bill also would allow recording or filing fees to be recovered.

MCL 205.25                                                                     Legislative Analyst:  Jeff Mann

FISCAL IMPACT

The bill would likely result in additional revenue to the Department of Treasury with no fiscal impact on local government. By allowing recording or filing fees to be included in the total lien placed on delinquent accounts, the bill could generate increased revenue that would allow the Department to cover the recording and filing expenses of performing its duties under the Act.

Date Completed:  2-3-16                                                       Fiscal Analyst:  Cory Savino

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.