Bill Text: MI HB6431 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: other; public notice; revise to make reference to the local government public notice act. Amends secs. 24e, 29, 34a, 51, 78m, 79a & 152 of 1893 PA 206 (MCL 211.24e et seq.).
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2020-11-18 - Bill Electronically Reproduced 11/18/2020 [HB6431 Detail]
Download: Michigan-2019-HB6431-Introduced.html
HOUSE BILL NO. 6431
November 12, 2020, Introduced by Reps. Bolden,
Meerman and Steven Johnson and referred to the Committee on Government
Operations.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 24e, 29, 34a, 51, 78m, 79a, and 152 (MCL 211.24e, 211.29, 211.34a, 211.51, 211.78m, 211.79a, and 211.152), section 24e as amended by 2002 PA 197, section 34a as amended by 1986 PA 138, section 51 as amended by 2012 PA 57, section 78m as amended by 2014 PA 501, and section 79a as added by 1999 PA 133.
the people of the state of michigan enact:
Sec. 24e. (1) As used in this section:
(a) "Additional millage rate" means a millage rate for operating purposes in excess of the millage rate permitted by subsection (2).
(b) "Additions" means that term as defined in section 34d.
(c) "Base tax rate" means a millage rate for a local unit of government equal to the dollar amount of taxes levied for operating purposes for the concluding fiscal year from existing property divided by the taxable value of existing property for ad valorem property tax levies for the ensuing fiscal year.
(d) "Concluding fiscal year" means the fiscal year of the taxing unit immediately preceding the fiscal year for which a limitation under this section is applied or calculated.
(e) "Ensuing fiscal year" means the fiscal year of the taxing unit for which a limitation under this section is applied or calculated.
(f) "Existing property" means all property against which ad valorem property taxes were levied by a local unit for its concluding fiscal year, minus all property that is considered losses for purposes of ad valorem property tax levies of the local unit for the ensuing fiscal year.
(g) "Local unit of government" or "taxing unit" means a city, village, township, charter township, county, charter county, local school district, intermediate school district, community college district, or authority.
(h) "Losses" means that term as defined in section 34d.
(i) "Operating purposes" means all purposes for which ad valorem property taxes are levied by the taxing unit other than the levy of ad valorem property taxes to provide local school districts revenue that is deposited in a building and site fund, or to pay principal and interest due on a bond or note if and to the extent the ad valorem taxes levied for this purpose are in addition to charter or statutory limitations, as authorized by the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Except as provided by subsection (3), unless the taxing unit complies with section 16 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.436, the governing body of a taxing unit shall not levy ad valorem property taxes for operating purposes for an ensuing fiscal year of the taxing unit that yield an amount more than the sum of the taxes levied at the base tax rate on additions within the taxing unit for the ensuing fiscal year plus an amount equal to the taxes levied for operating purposes for the concluding fiscal year on existing property. If the taxing unit is a county, for purposes of this calculation the resulting sum shall must be reduced by an amount equal to the estimate of the distribution as certified by the state treasurer to be received by the county pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630, to the extent that the distribution has been appropriated by the legislature and the estimate has been certified by the state treasurer before the final date on which a county millage rate can be certified for the ensuing year. For purposes of this section, the state treasurer shall certify an amount that is an estimate of the amount to be distributed to each county pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630.
(3) Unless the taxing unit complies with section 16 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.436, a governing body of a taxing unit may approve a levy of an additional millage rate only after providing the notice required by subsections (6) and (9) and holding a public hearing of the governing body as prescribed by subsection (6). To approve the levy of the additional millage rate, the governing body shall adopt a separate resolution or ordinance.
(4) If, as a result of an appeal of county equalization or state equalization, the state equalized valuation of a unit of local government changes, and an incorrect amount of property taxes has been levied, the amount of additional tax revenue or the shortage of tax revenue shall must be deducted from or added to the next regular tax levy for that unit of local government after the determination of the rate authorized pursuant to under this section. If the legislature makes an appropriation to a county pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630, after the final date a county millage rate can be certified for the ensuing year, if an appropriation made pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630, is reduced by an executive order, or if the amount of a distribution pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630, varies from the estimated amount certified by the state treasurer pursuant to under subsection (2), the amount of additional tax revenue or the shortage of tax revenue shall must be deducted from or added to the next regularly estimated amount for purposes of the next required calculations under subsections (2) and (11).
(5) If, at any time, the taxing unit determines that the published, proposed additional millage rate or an adopted additional millage rate is insufficient, the taxing unit shall readvertise, hold another public hearing of the governing body, and, if necessary, revote.
(6) The public hearing of the governing body of a taxing unit required pursuant to under subsections (3) and (5) shall must be held for the purpose of receiving testimony and discussing a levy of an additional millage rate for its ensuing fiscal year. In addition to satisfying the requirements under the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, before January 1, 2022, the local unit of government or taxing unit shall publish notice of this public hearing in a newspaper of general circulation within the local unit of government or taxing unit. Beginning January 1, 2022, the local unit of government or taxing unit shall post notice of this public hearing as provided in the local government public notice act. This notice shall must be published or provided not less than 6 days before the public hearing and may be jointly published or provided with the notice of the public hearing on the taxing unit's proposed budget as required by section 2 of 1963 (2nd Ex Sess) PA 43, MCL 141.412, if both public hearings are held jointly. This The notice published or provided shall must specify the time, date, and place of the public hearing and shall must include, in addition to other pertinent information the local unit of government or taxing unit may elect to include, a statement indicating the proposed additional millage rate, the percentage by which this proposed additional millage rate would increase revenues for operating purposes from ad valorem property tax levies permitted by operation of subsection (2), the percentage of increased revenue from the immediately preceding year that the taxing unit would receive if the additional millage rate is not approved, and that the date and location the taxing unit plans to take action on the proposed resolution or ordinance will be announced at the public hearing. This The notice published or provided shall must also provide a statement that the taxing unit publishing or providing the notice has complete authority to establish the number of mills to be levied from within its authorized millage rate. The notice Notices published in a newspaper under this subsection shall must be in not less than 12-point type, shall must be preceded by a headline stating "notice of a public hearing on increasing property taxes" which shall be in not less than 18-point type, shall must be not less than 8 vertical column inches and 4 horizontal inches, and shall must not be placed in that portion of the newspaper reserved for legal notice and classified advertisements.
(7) The proposed additional millage rate, which is required by subsection (6) to be part of the notice of the public hearing, shall must be established by a resolution adopted by the governing body of the taxing unit before conducting the public hearing.
(8) Not more than 10 days after a public hearing, a taxing unit may approve the levy of an additional millage rate, but shall not approve an additional millage rate that is greater than a proposed additional millage rate that was published or provided pursuant to under subsection (6) and on which the public hearing has been held.
(9) Each local unit shall send timely written notice of the time, date, and place of a public hearing to be held pursuant to under this section to all newspapers of general circulation within the local unit.
(10) This section shall does not serve to extend or authorize the levy of ad valorem property taxes at a tax rate in excess of the maximum permitted by law, or to prevent the reduction of the tax rate either by action of the governing body of the taxing unit or pursuant to this act, including sections 34 and 34d. Reductions in millage rates that may be required by the compound operation of sections 34 and 34d shall must be calculated independently of the tax rate limitation determined by operation of this section.
(11) If the sum of a county's operating property tax levy for the ensuing fiscal year plus the county's distribution to be received pursuant to under section 10 of the state convention facility development act, 1985 PA 106, MCL 207.630, exceeds the product of the county's taxable value for the ensuing fiscal year times the greater of the county's base tax rate or concluding fiscal year's operating millage rate, then an amount equal to the lesser of 50% of the excess or 50% of the state convention facility development act, 1985 PA 106, MCL 207.621 to 207.640, distribution shall must be used for substance abuse use disorder treatment programs within the county. The proceeds received by the taxing unit shall must be distributed to the coordinating agency designated for that county pursuant to section 6226 of the public health code, 1978 PA 368, MCL 333.6226, a department-designated community mental health entity designated under section 274 of the mental health code, 1974 PA 258, MCL 330.1274, and used only for substance abuse prevention and treatment programs in the county from which the proceeds originated.
(12) Except as provided in subsection (13), this section applies to a fiscal year of a taxing unit for which ad valorem property taxes are levied in 1982 or in any year after 1982. This section does not apply for the ensuing fiscal year of a local unit of government that levied ad valorem property taxes for operating purposes of 1 mill or less for its concluding fiscal year.
(13) This section does not apply to local school districts in 1994.
(14) In 1995, the calculations made pursuant to under this section by local school districts shall must be made without regard to the exemption provided under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211, and the taxable value of property exempt under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211, is not considered a loss.
Sec. 29. (1) On the Tuesday immediately following the first Monday in March, the board of review of each township shall meet at the office of the supervisor, at which time the supervisor shall submit to the board the assessment roll for the current year, as prepared by the supervisor, and the board shall proceed to examine and review the assessment roll.
(2) During that day, and the day following, if necessary, the board, of its own motion, or on sufficient cause being shown by a person, shall add to the roll the names of persons, the value of personal property, and the description and value of real property liable to assessment in the township, omitted from the assessment roll. The board shall correct errors in the names of persons, in the descriptions of property upon on the roll, and in the assessment and valuation of property. The board shall do whatever else is necessary to make the roll comply with this act.
(3) The roll board shall be reviewed review the roll according to the facts existing on the tax day. The board shall not add to the roll property not subject to taxation on the tax day, and the board shall not remove from the roll property subject to taxation on that day regardless of a change in the taxable status of the property since that day.
(4) The board shall pass upon each valuation and each interest, and shall enter the valuation of each, as fixed by the board, in a separate column.
(5) The roll as prepared by the supervisor shall must stand as approved and adopted as the act of the board of review, except as changed by a vote of the board. If for any cause reason a quorum does not assemble during the days above mentioned in subsections (1) and (2), the roll as prepared by the supervisor shall must stand as if approved by the board of review.
(6) The business which that the board may perform shall must be conducted at a public meeting of the board held in compliance with Act No. 267 of the Public Acts of 1976, being sections 15.261 to 15.275 of the Michigan Compiled Laws. the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting shall must be given in the manner required by Act No. 267 of the Public Acts of 1976. Notice the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Before January 1, 2022, notice of the date, time, and place of the meeting of the board of review shall must be given at least 1 week before the meeting by publication in a generally circulated newspaper serving the area. The notice shall must appear in 3 successive issues of the newspaper where available; otherwise, by the posting of the notice in 5 conspicuous places in the township. Beginning January 1, 2022, public notice of the time, date, and place of the meeting must be posted not more than 30 days but not less than 14 days before the meeting as provided in the local government public notice act.
(7) When If the board of review makes a change in changes the assessment of property or adds property to the assessment roll, the person chargeable with the assessment shall must be promptly notified in such a manner as will assure that assures the person an opportunity to attend the second meeting of the board of review provided in section 30.
Sec. 34a. (1) The equalization director of each county shall prepare a tabular statement each year, by the several cities and townships of the county, showing the tentative recommended equalization ratios and estimated multipliers necessary to compute individual state equalized valuation of real property and of personal property. The Before January 1, 2022, the county shall publish the tabulation in a newspaper of general circulation within the county on or before the third Monday in February each year. and Beginning January 1, 2022, the county shall post public notice of the tabulation on or before the third Monday in February each year as provided in the local government public notice act. The county shall furnish a copy of the tabulation to each assessor and to each of the boards of review in the county and to the state tax commission. All notices of meetings of the boards of review shall must give the tentative ratios and estimated multipliers pertaining to their jurisdiction. The tentative recommended equalization ratios and multiplying figures shall must not prejudice the equalization procedures of the county board of commissioners or the state tax commission.
(2) If the final equalization multiplier for only the 1986 tax year exceeds the tentative multiplier used in preparing the assessment notice and as a result of action of the state board of equalization or county board of commissioners a taxpayer's assessment as equalized is in excess of 50% of true cash value, that person may appeal directly to the tax tribunal. The appeal shall be filed under this subsection during 1986 on or before the third Monday in August and shall be heard in the same manner as other appeals of the tribunal. An appeal pursuant to this subsection shall not result in an equalized value less than the assesed value multiplied by the tentative equalization multiplier used in preparing the assessment notice.
Sec. 51. (1) If a township treasurer does not file his or her bond with the county treasurer as prescribed by law and the township board fails to appoint a treasurer to give the bond and deliver a receipt for the bond to the supervisor by December 10, the supervisor shall deliver the tax roll with the necessary warrant directed to the county treasurer, who shall make the collection and return of taxes. The county treasurer, pursuant to the adoption of a resolution by the county board of commissioners, has the same powers and duties to add a property tax administration fee, a late penalty charge, and interest to all taxes collected as conferred upon a township treasurer under section 44. The excess of the amount of property tax administration fees over the expense to the county in collecting the taxes shall must be returned to the township, and the remainder of the property tax administration fees and any late penalty charges imposed shall must be credited to the county general fund. For the purpose of collecting the taxes, the county treasurer is vested with all the powers conferred upon the township treasurer and an action may be brought on the county treasurer's bond under the same circumstances as on those of a township treasurer.
(2) A local tax collecting unit that collects a summer property tax shall defer the collection of summer property taxes against the following property for which a deferment is claimed until the following February 15:
(a) The principal residence of a taxpayer who meets both of the following conditions:
(i) Meets 1 or more of the following conditions:
(A) Is a totally and permanently disabled person, blind person, paraplegic, quadriplegic, eligible serviceperson, eligible veteran, or eligible widow or widower, as these persons are defined in chapter 9 of the income tax act of 1967, 1967 PA 281, MCL 206.501 to 206.532.
(B) Is 62 years of age or older, including the unremarried surviving spouse of a person who was 62 years of age or older at the time of death.
(ii) For the prior taxable tax year had a total household income of the following:
(A) For taxes levied before January 1, 2005, $25,000.00, or less.
(B) For taxes levied after December 31, 2004 and before January 1, 2006, $35,000.00, or less.
(C) For taxes levied after December 31, 2005 and before January 1, 2007, $37,500.00, or less.
(D) For taxes levied after December 31, 2006, $40,000.00, or less.
(b) Property classified or used as agricultural real property if the gross receipts of the agricultural or horticultural operations in the previous year or the average gross receipts of the operations in the previous 3 years are not less than the household income of the owner in the previous year or the combined household incomes in the previous year of the individual members of a limited liability company or partners of a partnership that owns the agricultural real property. A limited liability company or partnership may claim the deferment under this section only if the individual members of the limited liability company or partners of the partnership qualified for the deferment under this section before the individual members or partners formed the limited liability company or partnership.
(3) A taxpayer may claim a deferment provided by under subsection (2) by filing with the treasurer of the local property tax collecting unit an intent to defer the summer property taxes that are due and payable in that year without penalty or interest. Taxes deferred under subsection (2) that are not paid by the following February 15 are not subject to penalties or interest for the period of deferment.
(4) The intent statement required by subsection (3) shall must be on a form prescribed and provided by the department of treasury to the treasurer of the local property tax collecting unit.
(5) The treasurer of the local property tax collecting unit that collects a summer property tax shall do the following:
(a) Cause Before January 1, 2022, cause a notice of the availability of the deferment to be published in a newspaper of general circulation within the local property tax collecting unit or to be included as an insertion with the tax bill. Beginning January 1, 2022, post public notice of the availability of the deferment as provided in the local government public notice act or include notice of the availability of the deferment as an insertion with the tax bill.
(b) Assist persons in completing the deferment form.
(6) If a local property tax collecting unit that collects a summer property tax also collects a winter property tax in the same year, a statement of the amount of taxes deferred pursuant to under subsection (2) shall must be in the December tax statement mailed by the local property tax collecting unit for each summer property tax payment that was deferred from collection. If a local property tax collecting unit that collects a summer property tax does not collect a winter property tax in the same year, it shall mail a statement of the amount of taxes deferred under subsection (2) at the same time December tax statements are required to be mailed under section 44.
(7) Persons eligible for deferment of summer property taxes under subsection (2) may file their intent to defer until September 15 or the time the tax would otherwise become subject to interest or a late penalty charge for late payment, whichever is later.
(8) To the extent permitted by the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or the charter of a local property tax collecting unit, a local property tax collecting unit may provide for the levy and collection of summer property taxes. The terms and conditions of collection established by or under an agreement executed pursuant to the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or the charter of a local tax collecting unit govern a summer property tax levy.
(9) As used in this section:
(a) "Principal residence" means property exempt under section 7cc.
(b) "Summer property tax" means a levy of ad valorem property taxes that first becomes a lien before December 1 of any calendar year.
Sec. 78m. (1) Not later than the first Tuesday in July , immediately succeeding the entry of judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit, this state is granted the right of first refusal to purchase property at the greater of the minimum bid or its fair market value by paying that amount to the foreclosing governmental unit if the foreclosing governmental unit is not this state. If this state elects not to purchase the property under its right of first refusal, a city, village, or township may purchase for a public purpose any property located within that city, village, or township set forth in the judgment and subject to sale under this section by payment to the foreclosing governmental unit of the minimum bid. If a city, village, or township does not purchase that property, the county in which that property is located may purchase that property under this section by payment to the foreclosing governmental unit of the minimum bid. If property is purchased by a city, village, township, or county under this subsection, the foreclosing governmental unit shall convey the property to the purchasing city, village, township, or county within 30 days. If property purchased by a city, village, township, or county under this subsection is subsequently sold for an amount in excess of the minimum bid and all costs incurred relating to demolition, renovation, improvements, or infrastructure development, the excess amount shall must be returned to the delinquent tax property sales proceeds account for the year in which the property was purchased by the city, village, township, or county or, if this state is the foreclosing governmental unit within a county, to the land reutilization fund created under section 78n. Upon the request of the foreclosing governmental unit, a city, village, township, or county that purchased property under this subsection shall provide to the foreclosing governmental unit without cost information regarding any subsequent sale or transfer of the property. This subsection applies to the purchase of property by this state, a city, village, or township, or a county prior to before a sale held under subsection (2).
(2) Subject to subsection (1), beginning on the third Tuesday in July immediately succeeding the entry of the judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit and ending on the immediately succeeding first Tuesday in November, the foreclosing governmental unit, or its authorized agent, at the option of the foreclosing governmental unit, shall hold 1 or more property sales at 1 or more convenient locations at which property foreclosed by the judgment entered under section 78k shall must be sold by auction sale, which may include an auction sale conducted via an internet website. Notice Before January 1, 2022, notice of the time and location of a sale shall must be published not less than 30 days before a sale in a newspaper published and circulated in the county in which the property is located, if there is one. If no newspaper is published in that county, publication shall must be made in a newspaper published and circulated in an adjoining county. Beginning January 1, 2022, public notice of the time and location of the sales must be posted as provided in the local government public notice act not less than 30 days before each sale. Each sale shall must be completed before the first Tuesday in November immediately succeeding the entry of judgment under section 78k vesting absolute title to the tax delinquent property in the foreclosing governmental unit. Except as provided in this subsection and subsection (5), property shall must be sold to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid. The foreclosing governmental unit may sell parcels individually or may offer 2 or more parcels for sale as a group. The minimum bid for a group of parcels shall must equal the sum of the minimum bid for each parcel included in the group. The foreclosing governmental unit may adopt procedures governing the conduct of the sale and the conveyance of parcels under this section and may cancel the sale prior to before the issuance of a deed under this subsection if authorized under the procedures. The foreclosing governmental unit shall require full payment at the close of each day's bidding or by a date not more than 21 days after the sale. Before the foreclosing governmental unit conveys a parcel sold at a sale, the purchaser shall provide the foreclosing governmental unit with proof of payment to the local tax collecting unit in which the property is located of any property taxes owed on the parcel at the time of the sale. A foreclosing governmental unit shall cancel a sale if unpaid property taxes owed on a parcel or parcels at the time of a sale are not paid within 21 days of the sale. If a sale is canceled under this subsection, the foreclosing governmental unit may offer the property to the next highest bidder and convey the property to that bidder under this subsection, subject to the requirements of this subsection for the highest bidder. Not more than 14 days after payment to the foreclosing governmental unit of all amounts required by the highest bidder or the next highest bidder under this subsection, the foreclosing governmental unit shall convey the property by deed to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid, or the next highest bidder if the sale to the highest bidder is canceled and the next highest bidder pays the amount required under this section to purchase the property. The deed shall must vest fee simple title to the property in the person bidding the highest amount above the minimum bid, unless the foreclosing governmental unit discovers a defect in the foreclosure of the property under sections 78 to 78l or the sale is canceled under this subsection or subsection (5). If this state is the foreclosing governmental unit within a county, the department of treasury shall be is responsible for conducting the sale of property under this subsection and subsections (4) and (5) on behalf of this state. Before issuing a deed to a person purchasing property under this subsection or subsection (5), the foreclosing governmental unit shall require the person to execute and file with the foreclosing governmental unit an affidavit under penalty of perjury. If the person fails to execute and file the affidavit required by this subsection by the date payment for the property is required under this section, the foreclosing governmental unit shall cancel the sale. An affidavit under this section shall must indicate that the person meets all of the following conditions:
(a) The person does not directly or indirectly hold more than a de minimis legal interest in any property with delinquent property taxes located in the same county as the property.
(b) The person is not directly or indirectly responsible for any unpaid civil fines for a violation of an ordinance authorized by section 4l of the home rule city act, 1909 PA 279, MCL 117.4l, in the local tax collection unit in which the property is located.
(3) For sales held under subsection (2), after the conclusion of that sale, and prior to before any additional sale held under subsection (2), a city, village, or township may purchase any property not previously sold under subsection (1) or (2) by paying the minimum bid to the foreclosing governmental unit. If a city, village, or township does not purchase that property, the county in which that property is located may purchase that property under this section by payment to the foreclosing governmental unit of the minimum bid.
(4) If property is purchased by a city, village, township, or county under subsection (3), the foreclosing governmental unit shall convey the property to the purchasing city, village, township, or county within 30 days.
(5) All property subject to sale under subsection (2) shall must be offered for sale at 1 or more sales conducted as required by subsection (2). If the foreclosing governmental unit elects to hold more than 1 sale under subsection (2), the final sale held under subsection (2) shall must be held not less than 28 days after the immediately preceding sale under subsection (2). At the final sale held under subsection (2), the sale is subject to the requirements of subsection (2), except that the minimum bid shall is not be required. However, the foreclosing governmental unit may establish a reasonable opening bid at the sale to recover the cost of the sale of the parcel or parcels, and the foreclosing governmental unit shall require a person who held an interest in property sold under this subsection at the time a judgment of foreclosure was entered against the property under section 78k to pay the minimum bid for the property before issuing a deed to the person under subsection (2). If the person fails to pay the minimum bid for the property and other amounts by the date required under this section, the foreclosing governmental unit shall cancel the sale of the property.
(6) On or before December 1 immediately succeeding the entry of judgment under section 78k, a list of all property not previously sold by the foreclosing governmental unit under this section shall must be transferred to the clerk of the city, village, or township in which the property is located. The city, village, or township may object in writing to the transfer of 1 or more parcels of property set forth on that list. On or before December 30 immediately succeeding the entry of judgment under section 78k, all property not previously sold by the foreclosing governmental unit under this section shall must be transferred to the city, village, or township in which the property is located, except those parcels of property to which the city, village, or township has objected. Property located in both a village and a township may be transferred under this subsection only to a village. The city, village, or township may make the property available under the urban homestead act, 1999 PA 127, MCL 125.2701 to 125.2709, or for any other lawful purpose.
(7) If property not previously sold is not transferred to the city, village, or township in which the property is located under subsection (6), the foreclosing governmental unit shall retain possession of that property. If the foreclosing governmental unit retains possession of the property and the foreclosing governmental unit is this state, title to the property shall must vest in the land bank fast track authority created under section 15 of the land bank fast track act, 2003 PA 258, MCL 124.765.
(8) A foreclosing governmental unit shall deposit the proceeds from the sale of property under this section into a restricted account designated as the "delinquent tax property sales proceeds for the year ______". The foreclosing governmental unit shall direct the investment of the account. The foreclosing governmental unit shall credit to the account interest and earnings from account investments. Proceeds The foreclosing governmental unit shall use proceeds in that account shall only be used by the foreclosing governmental unit for the following purposes in the following order of priority:
(a) The delinquent tax revolving fund shall must be reimbursed for all taxes, interest, and fees on all of the property, whether or not all of the property was sold.
(b) All costs of the sale of property for the year shall must be paid.
(c) Any costs of the foreclosure proceedings for the year, including, but not limited to, costs of mailing, publication, personal service, and outside contractors shall must be paid.
(d) Any costs for the sale of property or foreclosure proceedings for any prior year that have not been paid or reimbursed from that prior year's delinquent tax property sales proceeds shall must be paid.
(e) Any costs incurred by the foreclosing governmental unit in maintaining property foreclosed under section 78k before the sale under this section shall must be paid, including costs of any environmental remediation.
(f) If the foreclosing governmental unit is not this state, any of the following:
(i) Any costs for the sale of property or foreclosure proceedings for any subsequent year that are not paid or reimbursed from that subsequent year's delinquent tax property sales proceeds shall must be paid from any remaining balance in any prior year's delinquent tax property sales proceeds account.
(ii) Any costs for the defense of title actions.
(iii) Any costs incurred in administering the foreclosure and disposition of property forfeited for delinquent taxes under this act.
(g) If the foreclosing governmental unit is this state, any remaining balance shall must be transferred to the land reutilization fund created under section 78n.
(h) In 2008 and each year after 2008, if the foreclosing governmental unit is not this state, not later than June 30 of the second calendar year after foreclosure, the foreclosing governmental unit shall submit a written report to its board of commissioners identifying any remaining balance and any contingent costs of title or other legal claims described in subdivisions (a) through (f). All or a portion of any remaining balance, less any contingent costs of title or other legal claims described in subdivisions (a) through (f), may subsequently be transferred into the general fund of the county by the board of commissioners.
(9) Two or more county treasurers of adjacent counties may elect to hold a joint sale of property as provided in this section. If 2 or more county treasurers elect to hold a joint sale, property may be sold under this section at a location outside of the county in which the property is located. The sale may be conducted by any county treasurer participating in the joint sale. A joint sale held under this subsection may include or be an auction sale conducted via an internet website.
(10) The foreclosing governmental unit shall record a deed for any property transferred under this section with the county register of deeds. The foreclosing governmental unit may charge a fee in excess of the minimum bid and any sale proceeds for the cost of recording a deed under this subsection.
(11) For property transferred to this state under subsection (1), a city, village, or township under subsection (6) or retained by a foreclosing governmental unit under subsection (7), all taxes due on the property as of the December 31 following the transfer or retention of the property are canceled effective on that December 31.
(12) For property sold under this section, transferred to this state under subsection (1), a city, village, or township under subsection (6), or retained by a foreclosing governmental unit under subsection (7), all liens for costs of demolition, safety repairs, debris removal, or sewer or water charges due on the property as of the December 31 immediately succeeding the sale, transfer, or retention of the property are canceled effective on that December 31. This subsection does not apply to liens recorded by the department of environmental quality environment, Great Lakes, and energy under this act or the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774.
(13) If property foreclosed under section 78k and held by or under the control of a foreclosing governmental unit is a facility as defined under section 20101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101, prior to before the sale or transfer of the property under this section, the property is subject to all of the following:
(a) Upon reasonable written notice from the department of environmental quality, environment, Great Lakes, and energy, the foreclosing governmental unit shall provide access to the department of environmental quality, environment, Great Lakes, and energy, its employees, contractors, and any other person expressly authorized by the department of environmental quality environment, Great Lakes, and energy to conduct response activities at the foreclosed property. Reasonable written notice under this subdivision may include, but is not limited to, notice by electronic mail or facsimile, if the foreclosing governmental unit consents to notice by electronic mail or facsimile prior to before the provision of notice by the department of environmental quality.environment, Great Lakes, and energy.
(b) If requested by the department of environmental quality environment, Great Lakes, and energy to protect public health, safety, and welfare or the environment, the foreclosing governmental unit shall grant an easement for access to conduct response activities on the foreclosed property as authorized under chapter 7 of article II of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20302.
(c) If requested by the department of environmental quality environment, Great Lakes, and energy to protect public health, safety, and welfare or the environment, the foreclosing governmental unit shall place and record deed restrictions on the foreclosed property as authorized under chapter 7 of article II of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20302.
(d) The department of environmental quality environment, Great Lakes, and energy may place an environmental lien on the foreclosed property as authorized under section 20138 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20138.
(14) If property foreclosed under section 78k and held by or under the control of a foreclosing governmental unit is a facility as defined under section 20101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101, prior to before the sale or transfer of the property under this section, the department of environmental quality environment, Great Lakes, and energy shall request and the foreclosing governmental unit shall transfer the property to the state land bank fast track authority created under section 15 of the land bank fast track act, 2003 PA 258, MCL 124.765, if all of the following apply:
(a) The department of environmental quality environment, Great Lakes, and energy determines that conditions at a foreclosed property are an acute threat to the public health, safety, and welfare, to the environment, or to other property.
(b) The department of environmental quality environment, Great Lakes, and energy proposes to undertake or is undertaking state-funded response activities at the property.
(c) The department of environmental quality environment, Great Lakes, and energy determines that the sale, retention, or transfer of the property other than under this subsection would interfere with response activities by the department of environmental quality.environment, Great Lakes, and energy.
(15) A person convicted for executing a false affidavit under subsection (5) shall be is prohibited from bidding for a property or purchasing a property at any sale under this section.
(16) As used in this section:
(a) "Minimum bid" is the minimum amount established by the foreclosing governmental unit for which property may be sold under this section. The minimum bid shall must include all of the following:
(i) All delinquent taxes, interest, penalties, and fees due on the property. If a city, village, or township purchases the property, the minimum bid shall must not include any taxes levied by that city, village, or township and any interest, penalties, or fees due on those taxes.
(ii) The expenses of administering the sale, including all preparations for the sale. The foreclosing governmental unit shall estimate the cost of preparing for and administering the annual sale for purposes of prorating the cost for each property included in the sale.
(b) "Person" means an individual, partnership, corporation, association, or other legal entity.
Sec. 79a. (1) A person who that holds a tax deed issued on abandoned property may quiet title to that abandoned property in the circuit court of the county in which the abandoned property is located by doing all of the following:
(a) The tax deed holder or his or her the holder's authorized agent conducts a title search on the abandoned property.
(b) After conducting the title search as provided in subdivision (a), the tax deed holder or his or her the holder's authorized agent sends notice by certified mail, return receipt requested, to the owner and to all persons with a legal interest in each parcel of abandoned property subject to accelerated foreclosure under this section, as determined by the records in the office of the register of deeds and in records maintained by the county treasurer and the state treasurer. If, for any reason, the notice cannot be delivered to the last recorded address of the owner or persons with a legal interest in the abandoned property, notice shall must be made by publication. The Before January 1, 2022, the notice shall must be published for 4 successive weeks, once each week, in a newspaper published and circulated in the county in which the parcel is located, if there is one. If no newspaper is published in the county where the parcel is located, publication shall must be made in a newspaper published and circulated in an adjoining county. Publication under this subdivision is subject to the requirements set forth in section 65.Beginning January 1, 2022, public notice must be posted as set forth in the local government public notice act.
(c) At the request of the tax deed holder, the building inspector of the municipality in which the property is located inspects the property and executes an affidavit attesting that the abandoned property is vacant, dilapidated, or open to entrance or trespass. The cost of the inspection shall must be paid by the tax deed holder and shall must be included in the amount necessary to redeem the property.
(d) The tax deed holder or his or her the holder's authorized agent posts a notice on the abandoned property not less than 90 days before a foreclosure action is brought under this subsection.
(e) The notice required under this subsection shall must include, but is not limited to, all of the following:
(i) The legal description, parcel number, and, if known, the street address of the abandoned property.
(ii) A statement of the total amount that must be paid to the county treasurer to redeem the abandoned property within 90 days of receipt of the notice, including fees to cover the cost of a title search, publication, and inspection by the municipal building inspector.
(iii) A statement of the person's rights of redemption and notice that the rights of redemption will expire 90 days after the person has received notice by mail or publication.
(iv) A statement that unless the taxes, interest, penalties, and fees are paid before the 90-day redemption period expires and a judgment of foreclosure is entered, title to the abandoned property shall vest vests absolutely in the petitioning tax deed holder.
(f) If the abandoned property is not redeemed by the owner or a person with a legal interest in the abandoned property by payment to the county treasurer within 90 days of service of the notice, the tax deed holder may bring an action in the circuit court of the county in which the abandoned property is located and petition the court to issue a judgment to quiet title in favor of the tax deed holder. The tax deed holder shall provide all of the following to the circuit court:
(i) An affidavit from the building inspector of the municipality as provided in subdivision (c).
(ii) A title search on the abandoned property that identifies all owners and persons with a legal interest in the abandoned property as determined by the records maintained in the office of the register of deeds, the county treasurer, and the state treasurer.
(iii) Proofs of service required under this section. If a tax deed holder fails to serve notice on 1 or more persons with a legal interest in the abandoned property as required under this section, service on any other person is not invalidated and the redemption period for any other person is not stayed or extended.
(iv) An affidavit from the county treasurer certifying to the lack of payment within the 90-day redemption period.
(2) If the circuit court enters a judgment in favor of the petitioning tax deed holder, the circuit court shall foreclose the abandoned property as requested in the petition for foreclosure. The circuit court's judgment shall must specify all of the following:
(a) The legal description and, if known, the street address and parcel number of the abandoned property foreclosed.
(b) That fee simple title to the abandoned property foreclosed by the judgment is vested absolutely in the petitioning tax deed holder without any further rights of redemption.
(c) That, as of the date of the judgment, all delinquent property taxes, demolition liens, and all other municipal liens of any kind, except future installments of special assessments, are extinguished.
(d) That all existing recorded and unrecorded interests in that property are extinguished, except a visible or recorded easement or right-of-way.
(e) That the petitioning tax deed holder has good and marketable fee simple title to the property.
(3) If a judgment for foreclosure is entered under subsection (2) and all existing recorded and unrecorded interests in a parcel of property are extinguished as provided in the judgment, the owners of any extinguished recorded or unrecorded interest in that property shall not bring an action for possession of the property against any subsequent owner, but may only bring an action to recover monetary damages. An action to recover monetary damages under this subsection shall must not be brought more than 2 years after a judgment for foreclosure is entered under subsection (2). Monetary damages shall must be determined as of the date a judgment for foreclosure is entered under subsection (2).
(4) For purposes of this section, property shall be is considered abandoned if all of the following requirements are satisfied:
(a) Within 30 days before the commencement of foreclosure proceedings under this section, the tax deed holder mails by certified mail, return receipt requested, to the last known address of the owner and all persons with a legal interest in the abandoned property a notice that the property is abandoned and that the tax deed holder intends to foreclose it.
(b) Before commencement of foreclosure proceedings under this section, the tax deed holder executes and records an affidavit in the office of the register of deeds in the county in which the abandoned property is located that states all of the following:
(i) That the tax deed holder has mailed to the last known address of the owner and all persons with a legal interest in the abandoned property a notice of abandonment and intention to foreclose pursuant to subdivision (a) and that the owner or any person with a legal interest in the abandoned property has not responded to the notice.
(ii) That the tax deed holder or his or her the holder's authorized agent has made a personal inspection of the abandoned property and that the inspection did not reveal that the owner or any person with a legal interest in the abandoned property is presently occupying or intends to occupy the abandoned property.
(c) The tax deed holder mails by certified mail, return receipt requested, a copy of the affidavit recorded under subdivision (b) to the owner or any person with a legal interest in the abandoned property at his or her last known address before commencing foreclosure proceedings under this section.
(d) The owner or any person with a legal interest in the abandoned property, before the judgment of foreclosure is entered, does not give a written affidavit to the tax deed holder and record a duplicate original in the office of the register of deeds of the county in which the abandoned property is located stating that the owner or person with a legal interest in the abandoned property is occupying or intends to occupy the abandoned property.
Sec. 152. (1) After the various assessment rolls required to be made under this act or under the provisions of any municipal charter have been passed upon by the several boards of review, and prior to the before making and delivery of delivering the tax rolls to the proper officer for collection of taxes, and in no case later than the first Monday in May, the several assessment rolls shall be are subject to inspection by the state tax commission or by any member or duly authorized representative thereof. of the state tax commission. If it appears to the state tax commission after such investigation, or is made to appear to the state tax commission by written complaint of any taxpayer , or assessing officer, that property subject to taxation has been omitted from or improperly described upon on the roll or individual assessments have not been made in compliance with law, the state tax commission may issue an order directing the assessor whose assessments are to be reviewed to appear with his the assessment roll and the sworn statements of the person or persons whose property or whose assessments are to be considered at a time and place to be stated in the order, the time to be not less than 14 days from the date of the issuance of the order, and the place to be at the office of the board of supervisors at the county seat or at such other another place in the county in which the roll was made prepared as the state tax commission shall deem most considers convenient for the hearing. herein provided. A written complaint by a taxpayer or assessing officer shall must be deemed considered to have been filed timely if it was deposited in the United States mail on or before the first Monday of May. No written complaint of any taxpayer shall may be accepted by the state tax commission unless the taxpayer has protested the assessment from which he appeals subject to appeal to the board of review.
(2) A notice of the hearing shall must be sent by registered certified mail, with return receipt requested, to all persons whose assessments are to be considered, at their last known address. , except that where the commission shall conduct However, if the state tax commission conducts a general review of all assessments within the taxing district, such before January 1, 2022, notice shall must be by publication in a newspaper published in the county, if there be any. If no newspaper is published in the county, then the notice shall must be by publication in a newspaper with general circulation in the county, at least 5 days before the date of the hearings. Beginning January 1, 2022, public notice of a general review of all assessments within the taxing district must be posted as provided in the local government public notice act not less than 5 days before the date of the hearings. A copy of the order shall must also be served upon the supervisor or assessing officer in whose with possession of the assessment roll shall be at least 14 days before he or she is required to appear with the assessment roll. The state tax commission, or any member or duly authorized representative thereof, of the state tax commission, shall appear at the time and place mentioned in the order, and the supervisor or assessing officer upon whom notice shall have been was served shall also appear also with the assessment roll. The state tax commission or any member or duly authorized representatives thereof of the state tax commission shall then and there hold a hearing as to determine the proper assessment of all property and persons mentioned in the notice, and all persons affected or liable to be affected by review of the assessments thus provided for may appear and be heard at the hearing. In any case where If the hearings shall be are held by a duly authorized representative of the state tax commission, he the representative shall report the facts brought forth at the hearing to the members of the state tax commission, who will determine the true and lawful assessment or change in the description of property as found necessary.
(3) In case If the state tax commission, or a member thereof, who shall act in the review, shall determine of the state tax commission, determines that the assessments so reviewed are not assessed according to law, he or they the state tax commission or member of the state tax commission shall, in a column provided for that purpose, place opposite the property the its true and lawful assessment. of it. Any increase or decrease of the assessment by such action shall must also increase or decrease the state equalized value valuation of the local tax collecting unit wherein in which the property is located by the amount that such the property's state equalized value valuation has been altered. As to the For property not upon on the assessment roll, the state tax commission, or member thereof of the state tax commission acting in the review, shall place it upon that property on the assessment roll by proper description and shall place thereafter, in the proper column , on the assessment roll the true cash value of the property. As to For property not properly described upon on the assessment roll, the state tax commission, or member thereof of the state tax commission acting in the review, shall make such any necessary change in the description of the property assessed. as is found necessary. The state tax commission shall also spread upon on the assessment roll a certificate, signed by the chairman chairperson of the state tax commission, showing the day and date on which the assessment roll was reviewed. For appearing with the roll as required herein under this section the supervisor or assessing officer shall must receive the same per diem as is received by him while in attendance at the meeting of the board of supervisors, to be presented to and paid by the proper officer of the municipality local tax collecting unit of which he or she is the assessing officer in the manner as his or her other compensation is paid. In all of its proceedings the contested case provisions of Act No. 197 of the Public Acts of 1952 as amended, shall not be applicable to of the state tax commission, and in its determination, article VI, section 28 , of article VI of the state constitution of the state of Michigan shall apply. 1963 applies. If the final action of the state tax commission or member of the state tax commission results in a change in the property's assessment, the state tax commission, on a form provided by the state tax commission, shall notify each affected school district, county, township, and city of its action. When If the assessment of any property has been reviewed by the state tax commission as herein authorized, such under this section, that assessment shall must not be changed for a period of 3 years without the written consent of the state tax commission. Whenever If a local assessing district tax collecting unit fails to have an assessment roll prepared as required in under this act and it becomes necessary for the state tax commission to assess the properties property in the district that local tax collecting unit, either by its own staff or the county equalization department under direction of the state tax commission, the local assessing district tax collecting unit shall bear the cost of such that assessment and shall reimburse the this state or the county.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 6440 (request no. 02449'19) of the 100th Legislature is enacted into law.
