NOTICE FOR DELINQUENT PROPERTY TAXES                                            H.B. 4039 (H-2):

                                                                                     SUMMARY OF BILL REPORTED

                                                                                                     FROM COMMITTEE

House Bill 4039 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Jon Bumstead

House Committee:  Local Government

Senate Committee:  Local Government

CONTENT

The bill would amend the General Property Tax Act to do the following:

-- Specify that certain notice publication requirements pertaining to delinquent taxes and the foreclosure of tax-delinquent property would be satisfied by the inclusion of the notice in a separate insert within a "notice publication" (a print publication that meets certain criteria).

-- Allow a county treasurer and foreclosing governmental unit to provide notice of certain actions by inserting notices in a notice publication, rather than by publishing them in a newspaper.

-- Authorize a county treasurer and foreclosing governmental unit to post notice information on a website, in addition to inserting notices in a notice publication.

Sections 78a through 78r of the Act establish procedures for the return of tax-delinquent property to a county treasurer, the placement of a lien on the property, forfeiture of the property, and the eventual foreclosure and sale of the property. These procedures involve responsibilities of the county treasurer, as well as court proceedings, and a number of notices are required throughout the process.

Under the bill, a requirement for insertion of a notice publication under Sections 78a to 78r would be satisfied by the inclusion of the notice in a separate insert within a notice publication. A foreclosing governmental unit could exercise its discretion in selecting the notice publication in which the notice would be inserted based on the publication's cost and circulation.

The bill would take effect 90 days after its enactment.

MCL 211.78f et al.                                                   Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would tend to reduce the costs of counties and the State, which serves as the foreclosing governmental unit for some counties. The additional options and reduced number of required publication or insertion dates for some notices regarding tax foreclosure would allow for savings.

Date Completed:  10-28-15                                                Fiscal Analyst:  Elizabeth Pratt

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.