HOUSE BILL No. 6177 September 23, 1998, Introduced by Rep. Willard and referred to the Committee on Tax Policy. A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 44 (MCL 211.44), as amended by 1996 PA 57. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 44. (1) Upon receipt of the tax roll, the township 2 treasurer or other collector shall proceed to collect the taxes. 3 The township treasurer or other collector shall mail to each tax- 4 payer at the taxpayer's last known address on the tax roll or to 5 the taxpayer's designated agent a statement showing the descrip- 6 tion of the property against which the tax is levied, the taxable 7 value of the property, and the amount of the tax on the 8 property. If a tax statement is mailed to the taxpayer, a tax 9 statement sent to a taxpayer's designated agent may be in a 10 summary form or may be in an electronic data processing format. 11 If the tax statement information is provided to both a taxpayer 06741'98 FDD 2 1 and the taxpayer's designated agent, the tax statement mailed to 2 the taxpayer may be identified as an informational copy. A town- 3 ship treasurer or other collector electing to send a tax state- 4 ment to a taxpayer's designated agent or electing not to include 5 an itemization in the manner described in subsection (9)(c) in a 6 tax statement mailed to the taxpayer shall, upon request, mail a 7 detailed copy of the tax statement, including an itemization of 8 the amount of tax in the manner described by subsection (9)(c), 9 to the taxpayer without charge, as previously required by this 10 section. 11 (2) The expense of preparing and mailing the statement shall 12 be paid from the county, township, city, or village funds. 13 Failure to send or receive the notice does not prejudice the 14 right to collect or enforce the payment of the tax. The township 15 treasurer shall remain in the office of the township treasurer at 16 some convenient place in the township on each Friday in the month 17 of December, from 9 a.m. to 5 p.m. to receive taxes, but shall 18 receive taxes upon a weekday when they are offered. However, if 19 a Friday in the month of December is Christmas eve, Christmas 20 day, New Year's eve, or a day designated by the township as a 21 holiday for township employees, the township treasurer shall not 22 be required to remain in the office of the township treasurer on 23 that Friday, but shall remain in the office of the township trea- 24 surer at some convenient place in the township from 9 a.m. to 5 25 p.m. on the day most immediately preceding that Friday that is 26 not Christmas eve, Christmas day, New Year's eve, or a day 06741'98 3 1 designated by the township as a holiday for township employees, 2 to receive taxes. 3 (3) Except as provided by subsection (7), on a sum volun- 4 tarily paid before February 15 of the succeeding year, the local 5 property tax collecting unit shall add 1% for a property tax 6 administration fee. However, unless otherwise provided for by an 7 agreement between the assessing unit and the collecting unit, if 8 a local property tax collecting unit other than a village does 9 not also serve as the local assessing unit, the excess of the 10 amount of property tax administration fees over the expense to 11 the local property tax collecting unit in collecting the taxes, 12 but not less than 80% of the fee imposed, shall be returned to 13 the local assessing unit. A property tax administration fee is 14 defined as a fee to offset costs incurred by a collecting unit in 15 assessing property values, collecting the property tax levies, 16 and in the review and appeal processes. The costs of any 17 appeals, in excess of funds available from the property tax 18 administration fee, may be shared by any taxing unit only if 19 approved by the governing body of the taxing unit. Except as 20 provided by subsection (7), on all taxes paid after February 14 21 and before March 1 the governing body of a city or township may 22 authorize the treasurer to add to the tax a property tax adminis- 23 tration fee to the extent imposed on taxes paid before February 24 15 and a late penalty charge equal to 3% of the tax.Interest25 THE GOVERNING BODY OF A CITY OR TOWNSHIP MAY WAIVE INTEREST from 26 February 15 to the last day of February on a summer property tax 27 that has been deferred under section 51 or any late penalty 06741'98 4 1 chargemay be waived by the governing body of a city or2townshipfor the homestead property of a senior citizen, para- 3 plegic, quadriplegic, hemiplegic, eligible serviceperson, eligi- 4 ble veteran, eligible widow or widower, totally and permanently 5 disabled person, or blind person, as those persons are defined in 6 chapter 9 of the income tax act of 1967,Act No. 281 of the7Public Acts of 1967, being sections 206.501 to 206.532 of the8Michigan Compiled Laws1967 PA 281, MCL 206.501 TO 206.532, if 9 the person makes a claim before February 15 for a credit for that 10 property provided by chapter 9 ofAct No. 281 of the Public Acts11of 1967THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.501 TO 12 206.532, if the person presents a copy of the form filed for that 13 credit to the local treasurer, and if the person has not received 14 the credit before February 15.InterestTHE GOVERNING BODY OF 15 A CITY OR TOWNSHIP MAY WAIVE INTEREST from February 15 to the 16 last day of February on a summer property tax deferred under sec- 17 tion 51 or any late penalty chargemay be waived by the govern-18ing body of a city or townshipfor a person's property that is 19 subject to a farmland development rights agreement recorded with 20 the register of deeds of the county in which the property is sit- 21 uated as provided in section 36104 of part 361 (farmland and open 22 space preservation) of the natural resources and environmental 23 protection act,Act No. 451 of the Public Acts of 1994, being24section 324.36104 of the Michigan Compiled Laws1994 PA 451, MCL 25 324.36104, if the person presents a copy of the development 26 rights agreement or verification that the property is subject to 27 a development rights agreement before February 15. A 4% county 06741'98 5 1 property tax administration fee, a property tax administration 2 fee to the extent imposed on and if authorized under subsection 3 (7) for taxes paid before March 1, and interest on the tax at the 4 rate of 1% per month shall be added to taxes collected by the 5 township or city treasurer after the last day of February and 6 before settlement with the county treasurer, and the payment 7 shall be treated as though collected by the county treasurer. If 8 the statements required to be mailed by this section are not 9 mailed before December 31, the treasurer shall not impose a late 10 penalty chargewith respect toON taxes collected after 11 February 14. 12 (4) The governing body of a local property tax collecting 13 unit may waive all or part of the property tax administration fee 14 or the late penalty charge, or both. A property tax administra- 15 tion fee collected by the township treasurer shall be used only 16 for the purposes for which it may collected as specified by sub- 17 section (3) and this subsection. If the bond of the treasurer, 18 as provided in section 43, is furnished by a surety company, the 19 cost of the bond may be paid by the township from the property 20 tax administration fee. 21 (5) If apprehensive of the loss of personal tax assessed 22 upon the roll, the township treasurer may enforce collection of 23 the tax at any time, and if compelled to seize property or bring 24 an action in December may add, if authorized under 25 subsection (7), 1% for a property tax administration fee and 3% 26 for a late penalty charge. 06741'98 6 1 (6) Along with taxes returned delinquent to a county 2 treasurer under section 55, the amount of the 1% property tax 3 administration fee prescribed by subsection (3) that is imposed 4 and not paid shall be included in the return of delinquent taxes 5 and, when delinquent taxes are distributed by the county trea- 6 surer under this act, the delinquent 1% property tax administra- 7 tion fee shall be distributed to the treasurer of the local unit 8 who transmitted the statement of taxes returned as delinquent. 9 Interest imposed upon delinquent property taxes under this act 10 shall also be imposed upon the 1% property tax administration fee 11 and, for purposes of this act other than to which local unit the 12 county treasurer shall distribute a delinquent 1% property tax 13 administration fee, any reference to delinquent taxes shall be 14 considered to include the 1% property tax administration fee 15 returned as delinquent for the same property. 16 (7) The local property tax collecting treasurer shall not 17 impose a property tax administration fee, collection fee, or any 18 type of late penalty charge authorized by law or charter unless 19 the governing body of the local property tax collecting unit 20 approves, by resolution or ordinance adopted after 21 December 31, 1982, an authorization for the imposition of a prop- 22 erty tax administration fee, collection fee, or any type of late 23 penalty charge provided for by this section or by charter, which 24 authorization shall be valid for all levies that become a lien 25 after the resolution or ordinance is adopted. However, unless 26 otherwise provided for by an agreement between the assessing unit 27 and the collecting unit, a local property tax collecting unit 06741'98 7 1 that does not also serve as the assessing unit shall impose a 2 property tax administration fee on each parcel at a rate equal to 3 the rate of the fee imposed for city or township taxes on that 4 parcel. 5 (8)TheIF THE TOWNSHIP TREASURER OR OTHER COLLECTOR DID 6 NOT MAIL THE TAX STATEMENT OR A COPY OF THE TAX STATEMENT TO THE 7 TAXPAYER, THE DESIGNATED AGENT SHALL INCLUDE WITHOUT CHARGE A 8 COPY OF THE TAX STATEMENT IN THE annual statement required by 9Act No. 125 of the Public Acts of 1966, being sections 565.16110to 565.164 of the Michigan Compiled Laws1966 PA 125, MCL 11 565.161 TO 565.164, or IN a monthly billing form or mortgagor 12 passbook provided instead of that annual statement.shall13include a statement to the effect that a taxpayer who has not14been mailed the tax statement or a copy of the tax statement by15the township treasurer or other collector shall receive, upon16request and without charge, a copy of the tax statement from the17township treasurer or other collector or, if the tax statement18has been mailed to the taxpayer's designated agent, from either19the taxpayer's designated agent or the township treasurer or20other collector.A designated agent who is subject toAct21No. 125 of the Public Acts of 19661966 PA 125, MCL 565.161 TO 22 565.164, and who has been mailed the tax statement for taxes that 23 became a lien in the IMMEDIATELY PRECEDING calendar year 24immediately preceding the year in which the annual statement may25be required to be furnishedshall mail, upon the request of26andwithout charge A COPY OF THAT TAX STATEMENT to a taxpayer 27 whohasWAS notbeenmailed that tax statement or a copy of 06741'98 8 1 that tax statement., a copy of that tax statement to that2taxpayer.3 (9) As used in this section: 4 (a) "Designated agent" means an individual, partnership, 5 association, corporation, receiver, estate, trust, or other legal 6 entity that has entered into an escrow account agreement or other 7 agreement with the taxpayer that obligates that individual or 8 legal entity to pay the property taxes for the taxpayer or, if an 9 agreement has not been entered into, thathas beenWAS desig- 10 nated by the taxpayer on a form made available to the taxpayer by 11 the township treasurer and filed with that treasurer. The desig- 12 nation by the taxpayer shall remain in effect until revoked by 13 the taxpayer in a writing filed with the township treasurer. The 14 form made available by the township treasurer shall include a 15 statement that submission of the form allows the treasurer to 16 mail the tax statement to the designated agent instead of to the 17 taxpayer and a statement notifying the taxpayer of his or her 18 right to revoke the designation by a writing filed with the town- 19 ship treasurer. 20 (b) "Taxpayer" means the owner of the propertyuponON 21 which the tax is imposed. 22 (c) When describing in subsection (1) that the amount of tax 23 on the property must be shown in the tax statement, "amount of 24 tax" means an itemization by dollar amount of each of the several 25 ad valorem property taxes and special assessments that a person 26 may pay under section 53 and an itemization by millage rate, on 27 either the tax statement or a separate form accompanying the tax 06741'98 9 1 statement, of each of the several ad valorem property taxes that 2 a person may pay under section 53. The township treasurer or 3 other collector may replace the itemization described in this 4 subdivision with a statement informing the taxpayer that the 5 itemization of the dollar amount and millage rate of the taxes is 6 available without charge from the local property tax collecting 7 unit. 06741'98 Final page. FDD