Bill Summary – FastDemocracy

SENATE BILL NO. 1147

"The general property tax act,"

by amending sections 78a and 78g (MCL 211.78a and 211.78g), section 78a as amended by 2014 PA 499 and section 78g as amended by 2020 PA 256.

the people of the state of michigan enact:

Sec. 78a. (1) For taxes levied after December 31, 1998, all property returned for delinquent taxes, and upon which taxes, interest, penalties, and fees remain unpaid after the property is returned as delinquent to the county treasurers of this state under this act, is subject to forfeiture, foreclosure, and sale for the enforcement and collection of the delinquent taxes as provided in section 78, this section, and sections 78b to 79a. As used in section 78, this section, and sections 78b to 79a, "taxes" includes interest, penalties, and fees imposed before the taxes become delinquent and unpaid special assessments or other assessments that are due and payable up to and including the date of the foreclosure hearing under section 78k.

(2) On March 1 in each year, taxes levied in the immediately preceding year that remain unpaid shall must be returned as delinquent for collection. However, if the last day in a year that taxes are due and payable before being returned as delinquent is on a Saturday, Sunday, or legal holiday, the last day taxes are due and payable before being returned as delinquent is on the next business day and taxes levied in the immediately preceding year that remain unpaid shall must be returned as delinquent on the immediately succeeding business day. Except as otherwise provided in section 79 for certified abandoned property, property delinquent for taxes levied in the second year preceding the forfeiture under section 78g or in a prior year to which this section applies shall must be forfeited to the county treasurer for the total of the unpaid taxes, interest, penalties, and fees for those years as provided under section 78g.

(3) A county property tax administration fee of 4% and, except as provided in section 78g(3)(c), interest computed at a noncompounded rate of 1% per month or fraction of a month on the taxes that were originally returned as delinquent, computed from the date that the taxes originally became delinquent, shall be are added to property returned as delinquent under this section. A county property tax administration fee provided for under this subsection shall must not be less than $1.00. After December 31, 2022, the following apply to property returned as delinquent under this section:

(a) If the property is located in a qualified large county, the treasurer of that county shall further add a $100.00 fee to the property if any delinquent taxes, interest, penalties, or fees remain unpaid on the immediately succeeding July 1.

(b) If the property is located in a qualified small county, the treasurer of that county may opt to further add a $100.00 fee if any delinquent taxes, interest, penalties, or fees remain unpaid on the immediately succeeding July 1.

(4) Any person with an unrecorded property interest or any other person who wishes at any time wants to receive notice of the return of delinquent taxes on a parcel of property may pay an annual fee not to exceed $5.00 by February 1 to the county treasurer and specify the parcel identification number, the address of the property, and the address to which the notice shall must be sent. Holders of any undischarged mortgages wishing to receive notice of the return of delinquent taxes on a parcel or parcels of property may provide a list of such parcels in a form prescribed by the county treasurer and pay an annual fee not to exceed $1.00 per parcel to the county treasurer and specify for each parcel the parcel identification number, the address of the property, and the address to which the notice should be sent. The county treasurer shall notify the person or holders of undischarged mortgages if delinquent taxes on the property or properties are returned within that year.

(5) Notwithstanding any charter provision to the contrary, the governing body of a local governmental unit that collects delinquent taxes may establish for any property, by ordinance, procedures for the collection of delinquent taxes and the enforcement of tax liens and the schedule for the forfeiture or foreclosure of delinquent tax liens. The procedures and schedule established by ordinance shall must conform at a minimum to those procedures and schedules established under sections 78a to 78l, except that those taxes subject to a payment plan approved by the treasurer of the local governmental unit as of July 1, 1999 shall must not be considered delinquent if payments are not delinquent under that payment plan.

(6) Taxes returned as delinquent to a county treasurer under this section may be paid at any time before forfeiture under section 78g by paying the county treasurer all of the following:

(a) The total amount of unpaid delinquent taxes, interest, penalties, and fees returned as delinquent.

(b) The county property tax administration fee required under subsection (3), unless waived under section 59(3).

(d) If added under subsection (3)(a) or (b), the $100.00 fee provided for under subsection (3)(a) or (b).

(7) Payment of taxes, interest, penalties, and fees under subsection (6) does not create a lien against the property or create a legal interest in the property.