HOUSE BILL NO. 5810
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 44f.
The people of the state of michigan enact:
Sec. 44f. (1) There is created in the department of treasury a summer 2020 property tax advance payment program, to be administered by the department, under which each county in this state shall provide eligible local tax collecting units in the county with advance payment of summer 2020 property taxes due and payable on property for which the collection of those taxes has been deferred under section 44e. All of the following apply to this program:
(a) To be eligible for receipt of an advance payment, a local tax collecting unit must submit an application to the county's treasurer in a form and manner prescribed by the department of treasury by not later than September 11, 2020. The application must be accompanied by copies of all deferment-application statements and affidavits properly submitted to the local tax collecting unit pursuant to section 44e(2)(b) and the associated summer 2020 property tax bills for those applications.
(b) Based on applications properly submitted to the county treasurer under subdivision (a), the county treasurer shall, by not later than September 18, 2020, submit to the department of treasury an application for short-term state financing described in subdivision (c). The application must be submitted in a form and manner prescribed by the department of treasury and must include, in addition to any other information the department considers necessary, information sufficient to determine, by parcel identification number, each parcel of property in the county for which advance payment of deferred summer 2020 property taxes is sought, the amount of the payment sought for each parcel, and the total amount sought for all parcels in the county.
(c) By not later than November 13, 2020, the department of treasury shall provide short-term state financing for advance payments to be made by each county to eligible local tax collecting units in the county, to the extent those payments are supported by documentation required under subdivisions (a) and (b). Funds necessary to support the short-term state financing under this subdivision may be obtained from any appropriate source, including, but not limited to, notes or bonds issued by the Michigan finance authority created by Executive Reorganization Order No. 2010-2, MCL 12.194.
(d) The county shall make advance payments financed under subdivision (c) to eligible local tax collecting units in the county by not later than December 1, 2020.
(e) The short-term state financing described in subdivision (c) is an interest-free loan provided to the county that the county shall repay to this state from any source available to the county, including, but not limited to, a delinquent tax revolving fund established by the county under this act for payment of summer 2020 property taxes returned as delinquent under section 78a. This repayment is due by not later than the earlier of the following dates:
(i) The date that section 87b(3) would have required payment of delinquent summer 2020 property taxes from the county's delinquent tax revolving fund to the various taxing units had there been no advance payment of those taxes to those taxing units pursuant to the advance payment program under this section.
(ii) June 1, 2021.
(2) An eligible local tax collecting unit shall distribute any advance payment received under subsection (1)(d) at the same times and in the same manner and proportions as it would distribute a payment from the property's owner collected by the eligible local tax collecting unit pursuant to this act.
(3) If an eligible local tax collecting unit that receives an advance payment under subsection (1)(d) subsequently receives payment of the tax from a property owner or other person, the eligible local tax collecting unit shall transmit that payment to the county.
(4) A county's advance payment of deferred summer 2020 property taxes under subsection (1)(d) is not made on behalf of the property's owner and those taxes remain due and payable from the property's owner, and unless those taxes have been paid by or on behalf of the property's owner by not later than the last day that summer 2020 property taxes are due and payable before being returned as delinquent to the county treasurer under section 78a, the eligible local tax collecting unit shall return those taxes as delinquent to the county treasurer under section 78a and the property will be subject to forfeiture, foreclosure, and sale for the enforcement and collection of those delinquent taxes as provided in sections 78 to 79a. Upon the return of those delinquent taxes, the primary obligation to pay to the county the amount of those delinquent taxes and any interest due on those delinquent taxes rests with the local taxing units and this state for the state education tax under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, as provided in section 87b, and if those delinquent taxes are not received by the county on behalf of the local taxing units and this state for any reason, the county has full right of recourse against the local taxing units or this state for the state education tax under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, to recover the amount of the delinquent taxes and any interest due on those delinquent taxes, as also provided in section 87b.
(5) As used in this section:
(a) "Eligible local tax collecting unit" means a local tax collecting unit that collects a summer 2020 property tax, including a village that collects a summer 2020 property tax, to which deferment-application statements and affidavits have been properly submitted under section 44e(2)(b), and that meets the eligibility requirements provided for in subsection (1)(b).
(b) "Summer 2020 property tax" means that term as defined in section 44e.