PROPERTY TAX COLLECTION
House Bill 4209 (H-1) as referred to second committee
Sponsor: Rep. Bradley Slagh
1st Committee: Local Government and Municipal Finance
2nd Committee: Ways and Means
Complete to 6-6-19
BRIEF SUMMARY: House Bill 4209 would amend the General Property Tax Act to allow a township treasurer to appoint a designee to act on his or her behalf for tax collection purposes under certain conditions.
FISCAL IMPACT: House Bill 4209 would have no fiscal impact on state or local government.
THE APPARENT PROBLEM:
Current law requires the treasurer of a township to maintain office hours to receive taxes during the last week of the year and on certain days when taxes are due. No other individual, not even a deputy treasurer, can receive taxes for the township during these times. As a result, if a township treasurer is unavailable during tax filing season—whether due to business or a personal emergency—taxpayers may find it difficult to file their property taxes on time. Legislation has been proposed to address this issue.
THE CONTENT OF THE BILL:
Under the General Property Tax Act, the treasurer of a township must remain in his or her office “at some convenient place in the township” from 9 a.m. to 5 p.m. to receive taxes for the township during the following days:
· At least one business day between December 25 and December 31, unless the township has a special arrangement with a local financial institution to receive taxes on its behalf.
· The last day that taxes are due and payable before being returned as delinquent.
· The last day that taxes are due and payable for a summer tax levy before interest is added.
The bill would allow the township treasurer to appoint a designee to take his or her place at the office during these times. A designee in this case could be a deputy treasurer or other individual who serves the township as an employee or elected official. The designee would have to be approved by the township board to serve as the designee.
Representatives of the following entities testified in support of the bill (5-15-19):
· Michigan Townships Association
· Allendale Charter Township
The Department of Treasury indicated a neutral position on the bill. (5-15-19)
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations and does not constitute an official statement of legislative intent.