HB-4484, As Passed Senate, December 16, 2003
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4484
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 78b, 78c, 78d, 78f, 78g, 78i, 78k, 78l, 78m,
131, and 131e (MCL 211.78b, 211.78c, 211.78d, 211.78f, 211.78g,
211.78i, 211.78k, 211.78l, 211.78m, 211.131, and 211.131e),
sections 78b, 78c, 78d, and 78l as added and sections 131 and
131e as amended by 1999 PA 123, section 78f as amended by 2001 PA
95, sections 78g and 78k as amended by 2001 PA 94, section 78i as
amended by 2001 PA 101, and section 78m as amended by 2001 PA 99;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 78b. Except as otherwise provided in section 79 for
2 certified abandoned property, on the June 1 immediately
3 succeeding the date that unpaid taxes are returned to the county
4 treasurer for forfeiture, foreclosure, and sale under section
1 60a(1) or (2) or returned to the county treasurer as delinquent
2 under section 78a, the county treasurer shall send notice of all
3 the following by first-class mail, address correction requested,
4 to the person to whom a tax bill for property returned for
5 delinquent taxes was last sent or to the person identified as the
6 owner of property returned for delinquent taxes, to a person
7 entitled to notice of the return of delinquent taxes under
8 section 78a(4), and to a person to whom a tax certificate for
9 property returned for delinquent taxes was issued pursuant to
10 section 71, as shown on the current records of the county
11 treasurer:
12 (a) The date property on which unpaid taxes were returned as
13 delinquent will be forfeited to the county treasurer for those
14 unpaid delinquent taxes, interest, penalties, and fees.
15 (b) A statement that a person who holds a legal interest in
16 the property may lose that interest as a result of the forfeiture
17 and subsequent foreclosure proceeding.
18 (c) A legal description or parcel number of the property and
19 the street address of the
property, if possible available.
20 (d) The person or persons to whom the notice is addressed.
21 (e) The unpaid delinquent taxes, interest, penalties, and
22 fees due on the property.
23 (f) A statement that unless those unpaid delinquent taxes,
24 interest, penalties, and
fees are paid within 21 days after
25 judgment is entered in
the foreclosure proceeding on or
before
26 the March 31 immediately succeeding the entry in an uncontested
27 case of a judgment foreclosing the property under section 78k,
1 absolute title to the property shall vest in the foreclosing
2 governmental unit.
3 (g) A statement of the person's rights of redemption and
4 notice that the rights of
redemption will expire 21 days after
5 the court enters an
order foreclosing the property on
the
6 March 31 immediately succeeding the entry in an uncontested case
7 of a judgment foreclosing the property under section 78k.
8 Sec. 78c. Except as otherwise provided in section 79 for
9 certified abandoned property, on the September 1 immediately
10 succeeding the date that unpaid taxes are returned to the county
11 treasurer for forfeiture, foreclosure, and sale under section
12 60a(1) or (2) or returned to the county treasurer as delinquent
13 under section 78a, the county treasurer shall send notice of all
14 the following by first-class mail, address correction requested,
15 to the person to whom a tax bill for property returned for
16 delinquent taxes was last sent or to the person identified as the
17 owner of property returned for delinquent taxes, to a person
18 entitled to notice of the return of delinquent taxes under
19 section 78a(4), and to a person to whom a tax certificate for
20 property returned for delinquent taxes was issued pursuant to
21 section 71, as shown on the current records of the county
22 treasurer:
23 (a) The date property on which unpaid taxes were returned as
24 delinquent will be forfeited to the county treasurer for those
25 unpaid delinquent taxes, interest, penalties, and fees.
26 (b) A statement that a person who holds a legal interest in
27 the property may lose that interest as a result of the forfeiture
1 and subsequent foreclosure proceeding.
2 (c) A legal description or parcel number of the property and
3 the street address of the
property, if possible available.
4 (d) The person or persons to whom the notice is addressed.
5 (e) The unpaid delinquent taxes, interest, penalties, and
6 fees due on the property.
7 (f) A schedule of the additional fees that will accrue on the
8 immediately succeeding October 1 pursuant to section 78d if the
9 unpaid delinquent taxes, interest, penalties, and fees due on the
10 property are not paid.
11 (g) A statement that unless those unpaid delinquent taxes,
12 interest, penalties, and
fees are paid within 21 days after
13 judgment is entered in
the foreclosure proceeding on or
before
14 the March 31 immediately succeeding the entry in an uncontested
15 case of a judgment foreclosing the property under section 78k,
16 absolute title to the property shall vest in the foreclosing
17 governmental unit.
18 (h) A statement of the person's rights of redemption and
19 notice that the rights of
redemption will expire 21 days after
20 the court enters an
order foreclosing the property on
the
21 March 31 immediately succeeding the entry in an uncontested case
22 of a judgment foreclosing the property under section 78k.
23 Sec. 78d. Except as otherwise provided in section 79 for
24 certified abandoned property, on the October 1 immediately
25 succeeding the date that unpaid taxes are returned to the county
26 treasurer for forfeiture, foreclosure, and sale under section
27 60a(1) or (2) or returned to the county treasurer as delinquent
1 under section 78a, the
county treasurer shall add a $15.00 fee ,
2 as adjusted under
section 78p, on each parcel of
property for
3 which the delinquent taxes, interest, penalties, and fees remain
4 unpaid.
5 Sec. 78f. (1) Except as otherwise provided in section 79
6 for certified abandoned property, not later than the February 1
7 immediately succeeding the date that unpaid taxes were returned
8 to the county treasurer for forfeiture, foreclosure, and sale
9 under section 60a(1) or (2) or returned to the county treasurer
10 as delinquent under section 78a, the county treasurer shall send
11 a notice by certified mail, return receipt requested, to the
12 person to whom a tax bill for property returned for delinquent
13 taxes was last sent and, if different, to the person identified
14 as the owner of property returned for delinquent taxes as shown
15 on the current records of the county treasurer and to those
16 persons identified under section 78e(2). The notice required
17 under this subsection shall include all of the following:
18 (a) The date property on which those unpaid taxes were
19 returned as delinquent will be forfeited to the county treasurer
20 for the unpaid delinquent taxes, interest, penalties, and fees.
21 (b) A statement that a person who holds a legal interest in
22 the property may lose that interest as a result of the forfeiture
23 and subsequent foreclosure proceeding.
24 (c) A legal description or parcel number of the property and
25 the street address of the
property, if possible available.
26 (d) The person to whom the notice is addressed.
27 (e) The unpaid delinquent taxes, interest, penalties, and
1 fees due on the property.
2 (f) A schedule of the additional interest, penalties, and
3 fees that will accrue on the immediately succeeding March 1
4 pursuant to section 78g if those unpaid delinquent taxes,
5 interest, penalties, and fees due on the property are not paid.
6 (g) A statement that unless those unpaid delinquent taxes,
7 interest, penalties, and
fees are paid within 21 days after
8 judgment is entered in
the foreclosure proceeding on or
before
9 the March 31 immediately succeeding the entry in an uncontested
10 case of a judgment foreclosing the property under section 78k,
11 absolute title to the property shall vest in the foreclosing
12 governmental unit.
13 (h) A statement of the person's rights of redemption and
14 notice that the rights of
redemption will expire 21 days after
15 the court enters an
order foreclosing the property on
the
16 March 31 immediately succeeding the entry in an uncontested case
17 of a judgment foreclosing the property under section 78k.
18 (2) The notice required under subsection (1) shall also be
19 mailed to the property by first-class mail, addressed to
20 "occupant", if the notice was not sent to the occupant of the
21 property pursuant to subsection (1).
22 (3) A county treasurer may insert 1 or more additional
23 notices in a newspaper published and circulated in the county in
24 which the property is located, if there is one. If no newspaper
25 is published in that county, publication may be made in a
26 newspaper published and circulated in an adjoining county.
27 (4) The county treasurer may publish the street address, if
1 available, of property subject to forfeiture under section 78g on
2 the immediately succeeding March 1 for delinquent taxes or the
3 street address, if available, of property subject to forfeiture
4 under section 78g on the immediately succeeding March 1 for
5 delinquent taxes and the name of the person to whom a tax bill
6 for property returned for delinquent taxes was last sent and, if
7 different, the name of the person identified as the owner of the
8 property returned for delinquent taxes as shown on the current
9 records of the county treasurer in a newspaper published and
10 circulated in the county in which the property is located, if
11 there is one. If no newspaper is published in that county,
12 publication may be made in a newspaper published and circulated
13 in an adjoining county.
14 Sec. 78g. (1) Except as otherwise provided in this
15 subsection, on March 1 in each tax year, certified abandoned
16 property and property that is delinquent for taxes, interest,
17 penalties, and fees for the immediately preceding 12 months or
18 more is forfeited to the county treasurer for the total amount of
19 those unpaid delinquent taxes, interest, penalties, and fees. If
20 property is forfeited to a county treasurer under this
21 subsection, the foreclosing governmental unit does not have a
22 right to possession of
the property until 21 days after a
23 judgment of
foreclosure is entered the April
1 immediately
24 succeeding the entry of a judgment foreclosing the property under
25 section 78k or in a contested case until 22 days after the entry
26 of a judgment foreclosing the property under section 78k. If
27 property is forfeited to a county treasurer under this
1 subsection, the county
treasurer shall add a $175.00 fee , as
2 adjusted under section
78p, to each parcel of property for
which
3 those delinquent taxes, interest, penalties, and fees remain
4 unpaid. A county treasurer shall withhold a parcel of property
5 from forfeiture for any reason determined by the state tax
6 commission. The procedure for withholding a parcel of property
7 from forfeiture under this subsection shall be determined by the
8 state tax commission.
9 (2) Not more than 45 days after property is forfeited under
10 subsection (1), the county treasurer shall record with the county
11 register of deeds a certificate in a form determined by the
12 state treasurer department of treasury for each parcel of
13 property forfeited to the county treasurer, specifying that the
14 property has been forfeited to the county treasurer and not
15 redeemed and that absolute title to the property shall vest in
16 the county treasurer 21
days after entry of a judgment of
17 foreclosure on the March 31 immediately succeeding the entry
of
18 a judgment foreclosing the property under section 78k, or in a
19 contested case 21 days after the entry of a judgment foreclosing
20 the property under section 78k. If a certificate of forfeiture
21 is recorded in error, the county treasurer shall record with the
22 county register of deeds a certificate of error in a form
23 prescribed by the department of treasury. A certificate
24 submitted to the county register of deeds for recording under
25 this subsection need not be notarized and may be authenticated by
26 a digital signature of the county treasurer or by other
27 electronic means. If the county has elected under section 78 to
1 have this state foreclose property under this act forfeited to
2 the county treasurer under this section, the county treasurer
3 shall immediately
transmit to the state treasurer department of
4 treasury a copy of each certificate recorded under this
5 subsection. The county treasurer shall upon collection transmit
6 to the state
treasurer department of treasury within 30 days
7 the fee added to each
parcel under section 78g(1) subsection
8 (1), which may be paid from the county's delinquent tax revolving
9 fund and shall be deposited in the land reutilization fund
10 created under section 78n.
11 (3) Property forfeited to the county treasurer under
12 subsection (1) may be
redeemed at any time before 21 days after
13 the entry of judgment
foreclosing the property on or
before the
14 March 31 immediately succeeding the entry of a judgment
15 foreclosing the property under section 78k, or in a contested
16 case within 21 days of the entry of a judgment foreclosing the
17 property under section 78k upon payment to the county treasurer
18 of all of the following:
19 (a) The total amount of unpaid delinquent taxes, interest,
20 penalties, and fees for which the property was forfeited.
21 (b) In addition to the interest calculated under sections
22 60a(1) or (2) and 78a(3), additional interest computed at a
23 noncompounded rate of 1/2% per month or fraction of a month on
24 the taxes that were originally returned as delinquent, computed
25 from the March 1 preceding the forfeiture.
26 (c) All recording fees and all fees for service of process or
27 notice.
1 (4) If property is redeemed by a person with a legal interest
2 as provided under subsection (3), any unpaid taxes not returned
3 as delinquent to the county treasurer under section 78a are not
4 extinguished.
5 (5) If property is redeemed by a person with a legal interest
6 as provided under subsection (3), the person redeeming does not
7 acquire a title or interest in the property greater than that
8 person would have had if the property had not been forfeited to
9 the county treasurer, but the person redeeming, other than the
10 owner, is entitled to a lien for the amount paid to redeem the
11 property in addition to any other lien or interest the person may
12 have, which shall be recorded within 30 days with the register of
13 deeds by the person entitled to the lien. The lien acquired
14 shall have the same priority as the existing lien, title, or
15 interest.
16 (6) If property is redeemed as provided under subsection (3),
17 the county treasurer shall issue a redemption certificate in
18 quadruplicate in a form prescribed by the department of
19 treasury. One of the quadruplicate certificates shall be
20 delivered to the person making the redemption payment, 1 shall be
21 filed in the office of the county treasurer, 1 shall be recorded
22 in the office of the county register of deeds, and 1 shall be
23 immediately transmitted to the department of treasury if this
24 state is the foreclosing governmental unit. The county treasurer
25 shall also make a note of the redemption certificate in the tax
26 record kept in his or her office, with the name of the person
27 making the final redemption payment, the date of the payment, and
1 the amount paid. If the county treasurer accepts partial
2 redemption payments, the county treasurer shall include in the
3 tax record kept in his or her office the name of the person or
4 persons making each partial redemption payment, the date of each
5 partial redemption payment, the amount of each partial redemption
6 payment, and the total amount of all redemption payments. A
7 certificate and the entry of the certificate in the tax record by
8 the county treasurer is prima facie evidence of a redemption
9 payment in the courts of this state. A certificate submitted to
10 the county register of deeds for recording under this subsection
11 need not be notarized and may be authenticated by a digital
12 signature of the county treasurer or by other electronic means.
13 If a redemption certificate is recorded in error, the county
14 treasurer shall record with the county register of deeds a
15 certificate of error in a form prescribed by the department of
16 treasury. A copy of a certificate of error recorded under this
17 section shall be immediately
transferred transmitted to the
18 department of treasury if this state is the foreclosing
19 governmental unit.
20 (7) If a foreclosing governmental unit has reason to believe
21 that a property forfeited under this section may be the site of
22 environmental contamination, the foreclosing governmental unit
23 shall provide the department of environmental quality with any
24 information in the possession of the foreclosing governmental
25 unit that suggests the property may be the site of environmental
26 contamination.
27 Sec. 78i. (1) Not later than May 1 immediately succeeding
1 the forfeiture of property to the county treasurer under section
2 78g, the foreclosing
governmental unit shall initiate a title
3 search of records identified in subsection (6) to identify the
4 owners of a property interest in the property who are entitled to
5 notice under this section of the show cause hearing under
6 section 78j and the foreclosure hearing under section 78k. The
7 foreclosing governmental unit may enter into a contract with 1 or
8 more authorized
representatives to perform the a title search
9 or may request from 1 or more authorized representatives another
10 title search product to identify the owners of a property
11 interest in the property as
required under this subsection and
12 or to perform the other
functions set forth in this section
13 required for the collection of delinquent taxes under this act.
14 (2) The After
conducting the search of records under
15 subsection (1), the foreclosing governmental unit or its
16 authorized representative shall determine the address reasonably
17 calculated to apprise those owners of a property interest of the
18 pendency of the show cause hearing under section 78j and the
19 foreclosure hearing under section 78k and shall send notice of
20 the show cause hearing under section 78j and the foreclosure
21 hearing under section 78k to those owners, to a person entitled
22 to notice of the return of delinquent taxes under section 78a(4),
23 and to a person to whom a tax deed for property returned for
24 delinquent taxes was issued pursuant to section 72 as determined
25 by the records of the state treasurer or county treasurer as
26 applicable, by certified mail, return receipt requested, not less
27 than 30 days before the
show cause hearing. The failure of the
1 foreclosing
governmental unit to comply with any provision of
2 this section shall not
invalidate any proceeding under this act
3 if the owner of a
property interest or a person to whom a tax
4 deed was issued is
accorded the minimum due process required
5 under the state
constitution of 1963 and the constitution of the
6 United States. If
after conducting the search of records under
7 subsection (1) the foreclosing governmental unit is unable to
8 determine an address reasonably calculated to inform a person
9 with an interest in a forfeited property, or if the foreclosing
10 governmental unit discovers a deficiency in notice under
11 subsection (4), the following shall be considered reasonable
12 steps by the foreclosing governmental unit or its authorized
13 representative to ascertain the address of a person entitled to
14 notice under this section or to ascertain an address necessary to
15 correct the deficiency in notice under subsection (4):
16 (a) For an individual, a search of the records of the probate
17 court for the county in which the property is located.
18 (b) For an individual, a search of the qualified voter file
19 established under section 509o of the Michigan election law, 1954
20 PA 116, MCL 168.509o, which is authorized by this subdivision.
21 (c) For a partnership, a search of partnership records filed
22 with the county clerk.
23 (d) For a business entity other than a partnership, a search
24 of business entity records filed with the department of labor and
25 economic growth.
26 (3) The foreclosing governmental unit or its authorized
27 representative or authorized agent shall make a personal visit to
1 each parcel of property forfeited to the county treasurer under
2 section 78g to ascertain whether or not the property is
3 occupied. If the property appears to be occupied, the
4 foreclosing governmental unit or its authorized representative
5 shall do all of the following:
6 (a) Attempt to personally serve upon a person occupying the
7 property notice of the show cause hearing under section 78j and
8 the foreclosure hearing under section 78k.
9 (b) If a person occupying the property is personally served,
10 orally inform the occupant that the property will be foreclosed
11 and the occupants will be required to vacate unless all forfeited
12 unpaid delinquent taxes, interest, penalties, and fees are paid,
13 of the time within which all forfeited unpaid delinquent taxes,
14 interest, penalties, and fees must be paid, and of agencies or
15 other resources that may be available to assist the owner to
16 avoid loss of the property.
17 (c) If the occupant appears to lack the ability to understand
18 the advice given, notify the family independence agency or
19 provide the occupant with the names and telephone number of the
20 agencies that may be able to assist the occupant.
21 (d) If the foreclosing governmental unit or its authorized
22 representative is not able to personally meet with the occupant,
23 the foreclosing governmental unit or its authorized
24 representative shall place the notice in a conspicuous manner on
25 the property and shall also place in a conspicuous manner on the
26 property a notice that explains, in plain English, that the
27 property will be foreclosed unless forfeited unpaid delinquent
1 taxes, interest, penalties, and fees are paid, the time within
2 which forfeited unpaid delinquent taxes, interest, penalties, and
3 fees must be paid, and the names, addresses, and telephone
4 numbers of agencies or other resources that may be available to
5 assist the occupant to avoid loss of the property. If this state
6 is the foreclosing governmental unit within a county, the
7 department of natural resources shall perform the personal visit
8 to each parcel of property under this subsection on behalf of
9 this state.
10 (4) If the foreclosing governmental unit or its authorized
11 representative discovers any deficiency in the provision of
12 notice, the foreclosing governmental unit shall take reasonable
13 steps in good faith to correct that deficiency not later than 30
14 days before the show cause hearing under section 78j, if
15 possible.
16 (5) If the foreclosing governmental unit or its authorized
17 representative is unable to ascertain the address reasonably
18 calculated to apprise the owners of a property interest entitled
19 to notice under this
section, or is unable to serve notify the
20 owner of a property
interest under subsection (2), service of
21 the notice shall be made by publication. A notice shall be
22 published for 3 successive weeks, once each week, in a newspaper
23 published and circulated in the county in which the property is
24 located, if there is one. If no paper is published in that
25 county, publication shall be made in a newspaper published and
26 circulated in an adjoining county. This publication shall be
27 instead of service notice
under subsection (2).
1 (6) The owner of a property interest is entitled to notice
2 under this section of the show cause hearing under section 78j
3 and the foreclosure hearing under section 78k if that owner's
4 interest was identifiable by reference to any of the following
5 sources before the date that the county treasurer records the
6 certificate required under section 78g(2):
7 (a) Records
Land title records in the office of the county
8 register of deeds.
9 (b) Tax records in the office of the county treasurer.
10 (c) Records Tax
records in the office of the local
11 assessor.
12 (d) Records Tax
records in the office of the local
13 treasurer.
14 (7) The notice
required under subsections (1) (2) and (3)
15 shall include all of the following:
16 (a) The date on which the property was forfeited to the
17 county treasurer.
18 (b) A statement that the person notified may lose his or her
19 interest in the property as a result of the foreclosure
20 proceeding under section 78k.
21 (c) A legal description or parcel number of the property and
22 the street address of the
property, if possible available.
23 (d) The person to whom the notice is addressed.
24 (e) The total taxes, interest, penalties, and fees due on the
25 property.
26 (f) The date and time of the show cause hearing under section
27 78j.
1 (g) The date and time of the hearing on the petition for
2 foreclosure under section 78k, and a statement that unless the
3 forfeited unpaid delinquent taxes, interest, penalties, and fees
4 are paid within 21
days after judgment is entered in the
5 foreclosure proceeding
on or before the March 31
immediately
6 succeeding the entry of a judgment foreclosing the property under
7 section 78k, or in a contested case within 21 days of the entry
8 of a judgment foreclosing the property under section 78k, the
9 title to the property shall vest absolutely in the foreclosing
10 governmental unit.
11 (h) An explanation of the person's rights of redemption and
12 notice that the rights of
redemption will expire 21 days after
13 judgment is entered in
the foreclosure proceeding on the
March
14 31 immediately succeeding the entry of a judgment foreclosing the
15 property under section 78k, or in a contested case 21 days after
16 the entry of a judgment foreclosing the property under section
17 78k.
18 (8) The published notice required under subsection (5) shall
19 include all of the following:
20 (a) A legal description or parcel number of each property.
21 (b) The street
address of each property, if possible
22 available.
23 (c) The name of any person or entity entitled to notice under
24 this section who has not
been notified under subsection (1) (2)
25 or (3).
26 (d) The date and time of the show cause hearing under
27 section 78j.
1 (e) The date and time of the hearing on the petition for
2 foreclosure under section 78k.
3 (f) A statement that unless all forfeited unpaid delinquent
4 taxes, interest,
penalties, and fees are paid within 21 days
5 after judgment is
entered in the foreclosure proceeding on
or
6 before the March 31 immediately succeeding the entry of a
7 judgment foreclosing the property under section 78k, or in a
8 contested case within 21 days of the entry of a judgment
9 foreclosing the property under section 78k, the title to the
10 property shall vest absolutely in the foreclosing governmental
11 unit.
12 (g) A statement that a person with an interest in the
13 property may lose his or her interest in the property as a result
14 of the foreclosure proceeding under section 78k.
15 (9) The owner of a property interest who has been properly
16 served with a notice of the show cause hearing under section 78j
17 and the foreclosure hearing under section 78k and who failed to
18 redeem the property as provided under this act shall not assert
19 any of the following:
20 (a) That notice was insufficient or inadequate on the grounds
21 that some other owner of a property interest was not also
22 served.
23 (b) That the redemption period provided under this act was
24 extended in any way on the grounds that some other owner of a
25 property interest was not also served.
26 (10) The failure of the foreclosing governmental unit to
27 comply with any provision of this section shall not invalidate
1 any proceeding under this act if the owner of a property interest
2 or a person to whom a tax deed was issued is accorded the minimum
3 due process required under the state constitution of 1963 and the
4 constitution of the United States.
5 (11) (10) As
used in this section, "authorized
6 representative" includes all of the following:
7 (a) A title insurance company or agent licensed to conduct
8 business in this state.
9 (b) An attorney licensed to practice law in this state.
10 (c) A person accredited in land title search procedures by a
11 nationally recognized organization in the field of land title
12 searching.
13 (d) A person with
demonstrated experience in the field of
14 title searching land title records, as determined by
the
15 foreclosing governmental unit.
16 (12) The provisions of this section relating to notice of the
17 show cause hearing under section 78j and the foreclosure hearing
18 under section 78k are exclusive and exhaustive. Other
19 requirements relating to notice or proof of service under other
20 law, rule, or legal requirement are not applicable to notice and
21 proof of service under this section.
22 Sec. 78k. (1) If a petition for foreclosure is filed under
23 section 78h, before not
later than the date of the hearing, the
24 foreclosing governmental unit shall file with the clerk of the
25 circuit court proof of service of the notice of the show cause
26 hearing under section 78j, proof of service of the notice of the
27 foreclosure hearing under this section, and proof of the personal
1 visit to the property and publication under section 78i.
2 (2) A person claiming an interest in a parcel of property set
3 forth in the petition for foreclosure may contest the validity or
4 correctness of the forfeited unpaid delinquent taxes, interest,
5 penalties, and fees for 1 or more of the following reasons:
6 (a) No law authorizes the tax.
7 (b) The person appointed to decide whether a tax shall be
8 levied under a law of this state acted without jurisdiction, or
9 did not impose the tax in question.
10 (c) The property was exempt from the tax in question, or the
11 tax was not legally levied.
12 (d) The tax has been paid within the time limited by law for
13 payment or redemption.
14 (e) The tax was assessed fraudulently.
15 (f) The description of the property used in the assessment
16 was so indefinite or erroneous that the forfeiture was void.
17 (3) A person claiming an interest in a parcel of property set
18 forth in the petition for foreclosure who desires to contest that
19 petition shall file written objections with the clerk of the
20 circuit court and serve those objections on the foreclosing
21 governmental unit prior to the date of the hearing required under
22 this section.
23 (4) If the court determines that the owner of property
24 subject to foreclosure is a minor heir, is incompetent, is
25 without means of support, or is undergoing a substantial
26 financial hardship, the court may withhold that property from
27 foreclosure for 1 year or may enter an order extending the
1 redemption period as the court determines to be equitable. If
2 the court withholds property from foreclosure under this
3 subsection, a taxing unit's lien for taxes due is not prejudiced
4 and that property shall be included in the immediately succeeding
5 year's tax foreclosure proceeding.
6 (5) The circuit court shall enter final judgment on a
7 petition for foreclosure
filed under section 78h not more than
8 10 days after the
March 1 immediately succeeding the date the
9 petition for
foreclosure is filed at any time
after the hearing
10 under this section but not later than the March 30 immediately
11 succeeding the hearing with the judgment effective on the March
12 31 immediately succeeding the hearing for uncontested cases or 10
13 days after the conclusion of the hearing for contested cases.
14 All redemption rights to
the property expire 21 days after the
15 circuit court enters a
judgment foreclosing the property as
16 requested in the
petition for foreclosure on the
March 31
17 immediately succeeding the entry of a judgment foreclosing the
18 property under this section, or in a contested case 21 days after
19 the entry of a judgment foreclosing the property under this
20 section. The circuit court's judgment shall specify all of the
21 following:
22 (a) The legal description and, if known, the street address
23 of the property foreclosed and the forfeited unpaid delinquent
24 taxes, interest, penalties, and fees due on each parcel of
25 property.
26 (b) That fee simple title to property foreclosed by the
27 judgment will vest absolutely in the foreclosing governmental
1 unit, except as otherwise provided in subdivisions (c) and (e),
2 without any further rights of redemption, if all forfeited
3 delinquent taxes, interest, penalties, and fees are not paid
4 within 21 days after
entry of the judgment on or
before the
5 March 31 immediately succeeding the entry of a judgment
6 foreclosing the property under this section, or in a contested
7 case within 21 days of the entry of a judgment foreclosing the
8 property under this section.
9 (c) That all liens against the property, including any lien
10 for unpaid taxes or special assessments, except future
11 installments of special assessments and liens recorded by this
12 state or the foreclosing governmental unit pursuant to the
13 natural resources and environmental protection act, 1994 PA 451,
14 MCL 324.101 to 324.90106, are extinguished, if all forfeited
15 delinquent taxes, interest, penalties, and fees are not paid
16 within 21 days after
entry of the judgment on or
before the
17 March 31 immediately succeeding the entry of a judgment
18 foreclosing the property under this section, or in a contested
19 case within 21 days of the entry of a judgment foreclosing the
20 property under this section.
21 (d) That, except as otherwise provided in subdivisions (c)
22 and (e), the foreclosing governmental unit has good and
23 marketable fee simple title to the property, if all forfeited
24 delinquent taxes, interest, penalties, and fees are not paid
25 within 21 days after
entry of the judgment on or
before the
26 March 31 immediately succeeding the entry of a judgment
27 foreclosing the property under this section, or in a contested
1 case within 21 days of the entry of a judgment foreclosing the
2 property under this section.
3 (e) That all existing recorded and unrecorded interests in
4 that property are extinguished, except a visible or recorded
5 easement or right-of-way, private deed restrictions, or
6 restrictions or other governmental interests imposed pursuant to
7 the natural resources and environmental protection act, 1994
8 PA 451, MCL 324.101 to 324.90106, if all forfeited delinquent
9 taxes, interest,
penalties, and fees are not paid within 21 days
10 after entry of the
judgment on or before the March
31
11 immediately succeeding the entry of a judgment foreclosing the
12 property under this section, or in a contested case within 21
13 days of the entry of a judgment foreclosing the property under
14 this section.
15 (f) A finding that all persons entitled to notice and an
16 opportunity to be heard have been provided that notice and
17 opportunity. A person shall be deemed to have been provided
18 notice and an opportunity to be heard if the foreclosing
19 governmental unit followed the procedures for provision of notice
20 by mail, for visits to forfeited property, and for publication
21 under section 78i, or if 1 or more of the following apply:
22 (i) The person had constructive notice of the hearing under
23 this section by acquiring an interest in the property after the
24 date the notice of forfeiture is recorded under section 78g.
25 (ii) The person appeared at the hearing under this section or
26 filed written objections with the clerk of the circuit court
27 under subsection (3) prior to the hearing.
1 (iii) Prior to the hearing under this section, the person had
2 actual notice of the hearing.
3 (g) A judgment entered under this section is a final order
4 with respect to the property affected by the judgment and except
5 as provided in subsection (7) shall not be modified, stayed, or
6 held invalid after the March 31 immediately succeeding the entry
7 of a judgment foreclosing the property under this section, or for
8 contested cases 21 days after the entry of a judgment foreclosing
9 the property under this section.
10 (6) Except as otherwise provided in subsection (5)(c) and
11 (e), fee simple title to property set forth in a petition for
12 foreclosure filed under section 78h on which forfeited delinquent
13 taxes, interest,
penalties, and fees are not paid within 21 days
14 after the entry of
judgment on or before the March
31
15 immediately succeeding the entry of a judgment foreclosing the
16 property under this section, or in a contested case within 21
17 days of the entry of a judgment foreclosing the property under
18 this section, shall vest absolutely in the foreclosing
19 governmental unit, and the foreclosing governmental unit shall
20 have absolute title to the property. The foreclosing
21 governmental unit's title is not subject to any recorded or
22 unrecorded lien and shall not be stayed or held invalid except as
23 provided in subsection (7) or (9).
24 (7) The foreclosing governmental unit or a person claiming to
25 have a property interest under section 78i in property foreclosed
26 under this section may appeal the circuit court's order or the
27 circuit court's judgment foreclosing property to the court of
1 appeals. An appeal under this subsection is limited to the
2 record of the proceedings in the circuit court under this section
3 and shall not be de novo. The circuit court's judgment
4 foreclosing property shall be stayed until the court of appeals
5 has reversed, modified, or affirmed that judgment. If an appeal
6 under this subsection stays the circuit court's judgment
7 foreclosing property, the circuit court's judgment is stayed only
8 as to the property that is the subject of that appeal and the
9 circuit court's judgment foreclosing other property that is not
10 the subject of that appeal is not stayed. To appeal the circuit
11 court's judgment foreclosing property, a person appealing the
12 judgment shall pay to the county treasurer the amount determined
13 to be due to the county
treasurer under the judgment within 21
14 days after the circuit
court's judgment is entered on or
before
15 the March 31 immediately succeeding the entry of a judgment
16 foreclosing the property under this section, or in a contested
17 case within 21 days of the entry of a judgment foreclosing the
18 property under this section, together with a notice of appeal.
19 If the circuit court's judgment foreclosing the property is
20 affirmed on appeal, the amount determined to be due shall be
21 refunded to the person who appealed the judgment. If the circuit
22 court's judgment foreclosing the property is reversed or modified
23 on appeal, the county treasurer shall refund the amount
24 determined to be due to the person who appealed the judgment, if
25 any, and retain the balance in accordance with the order of the
26 court of appeals.
27 (8) The foreclosing governmental unit shall record a notice
1 of judgment for each parcel of foreclosed property in the office
2 of the register of deeds for the county in which the foreclosed
3 property is located in a form prescribed by the department of
4 treasury.
5 (9) After the entry of a judgment foreclosing the property
6 under this section, if the property has not been transferred
7 under section 78m to a person other than the foreclosing
8 governmental unit, a foreclosing governmental unit may cancel the
9 foreclosure by recording with the register of deeds for the
10 county in which the property is located a certificate of error in
11 a form prescribed by the department of treasury, if the
12 foreclosing governmental unit discovers any of the following:
13 (a) The foreclosed property was not subject to taxation on
14 the date of the assessment of the unpaid taxes for which the
15 property was foreclosed.
16 (b) The description of the property used in the assessment of
17 the unpaid taxes for which the property was foreclosed was so
18 indefinite or erroneous that the forfeiture of the property was
19 void.
20 (c) The taxes for which the property was foreclosed had been
21 paid to the proper officer within the time provided under this
22 act for the payment of the taxes or the redemption of the
23 property.
24 (d) A certificate, including a certificate issued under
25 section 135, or other written verification authorized by law was
26 issued by the proper officer within the time provided under this
27 act for the payment of the taxes for which the property was
1 foreclosed or for the redemption of the property.
2 (e) An owner of an interest in the property entitled to
3 notice under section 78i was not provided notice sufficient to
4 satisfy the minimum requirements of due process required under
5 the state constitution of 1963 and the constitution of the United
6 States.
7 (f) A judgment of foreclosure was entered under this section
8 in violation of an order issued by a United States bankruptcy
9 court.
10 (10) A certificate of error submitted to the county register
11 of deeds for recording under subsection (9) need not be notarized
12 and may be authenticated by a digital signature of the
13 foreclosing governmental unit or by other electronic means.
14 Sec. 78l. (1) If a judgment for foreclosure is entered
15 under section 78k and all existing recorded and unrecorded
16 interests in a parcel of property are extinguished as provided in
17 section 78k, the owner of any extinguished recorded or unrecorded
18 interest in that property who claims that he or she did not
19 receive any notice required under this act shall not bring an
20 action for possession of the property against any subsequent
21 owner, but may only bring an action to recover monetary damages
22 as provided in this section.
23 (2) The court of claims has original and exclusive
24 jurisdiction in any action to recover monetary damages under this
25 section.
26 (3) An action to recover monetary damages under this section
27 shall not be brought more than 2 years after a judgment for
House Bill No. 4484 as amended December 11, 2003
1 foreclosure is entered under section 78k.
2 (4) Any monetary damages recoverable under this section shall
3 be determined as of the date a judgment for foreclosure is
4 entered under section 78k and shall not exceed the fair market
5 value of the property
interest in the property held by the
6 person bringing the action under this section on that date, less
7 any taxes, interest, penalties, and fees owed << >> on
8 the property as of that date.
9 (5) The right to sue for monetary damages under this section
10 is not transferable except by testate or intestate succession.
11 Sec. 78m. (1) Not
later than the first Tuesday in July, or
12 the first Tuesday in
September if a sale is not held under
13 subsection (2), immediately succeeding the entry of judgment
14 under section 78k vesting absolute title to tax delinquent
15 property in the foreclosing governmental unit, this state is
16 granted the right of first refusal to purchase property at the
17 greater of the minimum bid or its fair market value by paying
18 that amount to the foreclosing governmental unit if the
19 foreclosing governmental unit is not this state. If this state
20 elects not to purchase the property under its right of first
21 refusal, a city, village, or township may purchase for a public
22 purpose any property located within that city, village, or
23 township set forth in the judgment and subject to sale under this
24 section by payment to the foreclosing governmental unit of the
25 minimum bid. If a city, village, or township does not purchase
26 that property, the county in which that property is located may
27 purchase that property under this section by payment to the
1 foreclosing governmental unit of the minimum bid. If property is
2 purchased by a city, village, township, or county under this
3 subsection, the foreclosing governmental unit shall convey the
4 property to the purchasing city, village, township, or county
5 within 30 days. If property purchased by a city, village,
6 township, or county under this subsection is subsequently sold
7 for an amount in excess of the minimum bid and all costs incurred
8 relating to demolition, renovation, improvements, or
9 infrastructure development, the excess amount shall be returned
10 to the delinquent tax property sales proceeds account for the
11 year in which the property was purchased by the city, village,
12 township, or county or, if this state is the foreclosing
13 governmental unit within a county, to the land reutilization fund
14 created under section 78n. Upon the request of the foreclosing
15 governmental unit, a city, village, township, or county that
16 purchased property under this subsection shall provide to the
17 foreclosing governmental unit without cost information regarding
18 any subsequent sale or transfer of the property. This subsection
19 applies to the purchase of property by this state, a city,
20 village, or township, or a county prior to a sale held under
21 subsection (2). or,
if no sale is held under subsection (2),
22 prior to a sale held
under subsection (4).
23 (2) Subject to subsection (1), beginning on the third Tuesday
24 in July immediately succeeding the entry of the judgment under
25 section 78k vesting absolute title to tax delinquent property in
26 the foreclosing governmental unit and ending on the immediately
27 succeeding first Tuesday in November, the foreclosing
1 governmental unit, or its
authorized representative agent, at
2 the option of the
foreclosing governmental unit, may hold 1 or
3 more shall hold at least 2 property sales at 1 or
more
4 convenient locations at which property foreclosed by the judgment
5 entered under section 78k shall be sold by auction sale, which
6 may include an auction sale conducted via an internet website.
7 Notice of the time and
location of the sale sales shall be
8 published not less than
30 days before the each sale in a
9 newspaper published and circulated in the county in which the
10 property is located, if there is one. If no newspaper is
11 published in that county, publication shall be made in a
12 newspaper published and
circulated in an adjoining county. The
13 sale or sales Each sale shall be completed within 15
days.
14 Property before the first Tuesday in November immediately
15 succeeding the entry of judgment under section 78k vesting
16 absolute title to the tax delinquent property in the foreclosing
17 governmental unit. Except as provided in subsection (5),
18 property shall be sold to the person bidding the highest amount
19 above the minimum bid. The foreclosing governmental unit may
20 sell parcels individually or may offer 2 or more parcels for sale
21 as a group. The minimum bid for a group of parcels shall equal
22 the sum of the minimum bid for each parcel included in the
23 group. The foreclosing governmental unit may adopt procedures
24 governing the conduct of the sale and may cancel the sale prior
25 to the issuance of a deed under this subsection if authorized
26 under the procedures. The foreclosing governmental unit may
27 require full payment by cash, certified check, or money order at
1 the close of each day's bidding. Not more than 30 days after the
2 date of a sale under this subsection, the foreclosing
3 governmental unit shall convey the property by deed to the person
4 bidding the highest amount above the minimum bid. The deed shall
5 vest fee simple title to the property in the person bidding the
6 highest amount above the minimum bid, unless the foreclosing
7 governmental unit discovers a defect in the foreclosure of the
8 property under sections 78 to 78l. If this state is the
9 foreclosing governmental unit within a county, the department of
10 natural resources shall conduct the sale of property under this
11 subsection and subsections (4) and (5) on behalf of this state.
12 (3) If a sale has
been For sales held under subsection (2),
13 after the conclusion of
that sale, and not later than the first
14 Tuesday in September
immediately succeeding that sale prior
to
15 any additional sale held under subsection (2), a city, village,
16 or township may purchase any property not previously sold under
17 subsection (1) or (2) by paying the minimum bid to the
18 foreclosing governmental unit. If a city, village, or township
19 does not purchase that property, the county in which that
20 property is located may purchase that property under this section
21 by payment to the foreclosing governmental unit of the minimum
22 bid. If property is
purchased by a city, village, township, or
23 county under this
subsection, the foreclosing governmental unit
24 shall convey the
property to the purchasing city, village,
25 township, or county
within 30 days.
26 (4) Beginning on
the third Tuesday in September immediately
27 succeeding the entry
of the judgment of foreclosure, all property
1 not previously sold by
the foreclosing governmental unit under
2 subsection (1), (2),
or (3) shall be offered or reoffered for
3 sale, subject to the
same requirements set forth in subsection
4 (2). If property is purchased by a city, village,
township, or
5 county under subsection (3), the foreclosing governmental unit
6 shall convey the property to the purchasing city, village, or
7 township within 30 days.
8 (5) Beginning on
the third Tuesday in November immediately
9 succeeding the sale
held pursuant to subsection (4), all property
10 not previously sold
under subsection (1), (2), (3), or (4) shall
11 again be reoffered for
sale. The sale is subject to the
12 requirements set forth
in subsection (2), except that the minimum
13 bid shall not be
required. All property subject to
sale under
14 subsection (2) shall be offered for sale at not less than 2 sales
15 conducted as required by subsection (2). The final sale held
16 under subsection (2) shall be held not less than 28 days after
17 the previous sale under subsection (2). At the final sale held
18 under subsection (2), the sale is subject to the requirements of
19 subsection (2), except that the minimum bid shall not be
20 required. However, the foreclosing governmental unit may
21 establish a reasonable opening bid at the sale to recover the
22 cost of the sale of the parcel or parcels.
23 (6) On or before December 1 immediately succeeding the date
24 of the sale under subsection (5), a list of all property not
25 previously sold by the foreclosing governmental unit under this
26 section shall be transferred to the clerk of the city, village,
27 or township in which the property is located. The city, village,
1 or township may object in writing to the transfer of 1 or more
2 parcels of property set forth on that list. On or before
3 December 30 immediately succeeding the date of the sale under
4 subsection (5), all property not previously sold by the
5 foreclosing governmental unit under this section shall be
6 transferred to the city, village, or township in which the
7 property is located, except those parcels of property to which
8 the city, village, or township has objected. Property located in
9 both a village and a township may be transferred under this
10 subsection only to a village. The city, village, or township may
11 make the property available under the urban homestead act, 1999
12 PA 127, MCL 125.2701 to 125.2709, or for any other lawful
13 purpose.
14 (7) If property not previously sold is not transferred to the
15 city, village, or township in which the property is located under
16 subsection (6), the foreclosing governmental unit shall retain
17 possession of that property. If the foreclosing governmental
18 unit retains possession of the property and the foreclosing
19 governmental unit is this state, title to the property shall vest
20 in the land bank fast track authority created under section 15 of
21 the land bank fast track act.
22 (8) A foreclosing governmental unit shall deposit the
23 proceeds from the sale of property under this section into a
24 restricted account designated as the "delinquent tax property
25 sales proceeds for the year ______". The foreclosing
26 governmental unit shall direct the investment of the account.
27 The foreclosing governmental unit shall credit to the account
1 interest and earnings from account investments. Proceeds in that
2 account shall only be used by the foreclosing governmental unit
3 for the following purposes in the following order of priority:
4 (a) The delinquent tax revolving fund shall be reimbursed for
5 all taxes, interest, and fees on all of the property, whether or
6 not all of the property was sold.
7 (b) All costs of the sale of property for the year shall be
8 paid.
9 (c) Any costs of the foreclosure proceedings for the year,
10 including, but not limited to, costs of mailing, publication,
11 personal service, and outside contractors shall be paid.
12 (d) Any costs for the sale of property or foreclosure
13 proceedings for any prior year that have not been paid or
14 reimbursed from that prior year's delinquent tax property sales
15 proceeds shall be paid.
16 (e) Any costs incurred by the foreclosing governmental unit
17 in maintaining property foreclosed under section 78k before the
18 sale under this section shall be paid, including costs of any
19 environmental remediation.
20 (f) If the foreclosing governmental unit is not this state,
21 any of the following:
22 (i) Any costs for the sale of property or foreclosure
23 proceedings for any subsequent year that are not paid or
24 reimbursed from that subsequent year's delinquent tax property
25 sales proceeds shall be paid from any remaining balance in any
26 prior year's delinquent tax property sales proceeds account.
27 (ii) Any costs for the defense of title actions.
1 (iii) Any costs incurred in administering the foreclosure and
2 disposition of property forfeited for delinquent taxes under this
3 act.
4 (g) If the foreclosing governmental unit is this state, any
5 remaining balance shall be transferred to the land reutilization
6 fund created under section 78n.
7 (9) Two or more county treasurers of adjacent counties may
8 elect to hold a joint sale of property as provided in this
9 section. If 2 or more county treasurers elect to hold a joint
10 sale, property may be sold under this section at a location
11 outside of the county in which the property is located. The sale
12 may be conducted by any county treasurer participating in the
13 joint sale. A joint sale held under this subsection may include
14 or be an auction sale conducted via an internet website.
15 (10) The foreclosing governmental unit shall record a deed
16 for any property transferred under this section with the county
17 register of deeds. The foreclosing governmental unit may charge
18 a fee in excess of the minimum bid and any sale proceeds for the
19 cost of recording a deed under this subsection.
20 (11) As used in this section, "minimum bid" is the minimum
21 amount established by the foreclosing governmental unit for which
22 property may be sold under this section. The minimum bid shall
23 include all of the following:
24 (a) All delinquent taxes, interest, penalties, and fees due
25 on the property. If a city, village, or township purchases the
26 property, the minimum bid shall not include any taxes levied by
27 that city, village, or township and any interest, penalties, or
1 fees due on those taxes.
2 (b) The expenses of administering the sale, including all
3 preparations for the sale. The foreclosing governmental unit
4 shall estimate the cost of preparing for and administering the
5 annual sale for purposes of prorating the cost for each property
6 included in the sale.
7 (12) For property transferred to this state under subsection
8 (1), a city, village, or township under subsection (6) or
9 retained by a foreclosing governmental unit under subsection (7),
10 all taxes due on the property as of the December 31 following the
11 transfer or retention of the property are canceled effective on
12 that December 31.
13 (13) For property sold under this section, transferred to
14 this state under subsection (1), a city, village, or township
15 under subsection (6), or retained by a foreclosing governmental
16 unit under subsection (7), all liens for costs of demolition,
17 safety repairs, debris removal, or sewer or water charges due on
18 the property as of the December 31 immediately succeeding the
19 sale, transfer, or retention of the property are canceled
20 effective on that December 31. This subsection does not apply to
21 liens recorded by the department of environmental quality under
22 this act or the land bank fast track authority act.
23 (14) If property foreclosed under section 78k and held by or
24 under the control of a foreclosing governmental unit is a
25 facility as defined under section 20101(1)(o) of the natural
26 resources and environmental protection act, 1994 PA 451, MCL
27 324.20101, prior to the sale or transfer of the property under
1 this section, the property is subject to all of the following:
2 (a) Upon reasonable written notice from the department of
3 environmental quality, the foreclosing governmental unit shall
4 provide access to the department of environmental quality, its
5 employees, contractors, and any other person expressly authorized
6 by the department of environmental quality to conduct response
7 activities at the foreclosed property. Reasonable written notice
8 under this subdivision may include, but is not limited to, notice
9 by electronic mail or facsimile, if the foreclosing governmental
10 unit consents to notice by electronic mail or facsimile prior to
11 the provision of notice by the department of environmental
12 quality.
13 (b) If requested by the department of environmental quality
14 to protect public health, safety, and welfare or the environment,
15 the foreclosing governmental unit shall grant an easement for
16 access to conduct response activities on the foreclosed property
17 as authorized under chapter 7 of the natural resources and
18 environmental protection act, 1994 PA 451, MCL 324.20101 to
19 324.20302.
20 (c) If requested by the department of environmental quality
21 to protect public health, safety, and welfare or the environment,
22 the foreclosing governmental unit shall place and record deed
23 restrictions on the foreclosed property as authorized under
24 chapter 7 of the natural resources and environmental protection
25 act, 1994 PA 451, MCL 324.20101 to 324.20302.
26 (d) The department of environmental quality may place an
27 environmental lien on the foreclosed property as authorized under
1 section 20138 of the natural resources and environmental
2 protection act, 1994 PA 451, MCL 324.20138.
3 (15) If property foreclosed under section 78k and held by or
4 under the control of a foreclosing governmental unit is a
5 facility as defined under section 20101(1)(o) of the natural
6 resources and environmental protection act, 1994 PA 451, MCL
7 324.20101, prior to the sale or transfer of the property under
8 this section, the department of environmental quality shall
9 request and the foreclosing governmental unit shall transfer the
10 property to the state land bank fast track authority created
11 under section 15 of the land bank fast track act if all of the
12 following apply:
13 (a) The department of environmental quality determines that
14 conditions at a foreclosed property are an acute threat to the
15 public health, safety, and welfare, to the environment, or to
16 other property.
17 (b) The department of environmental quality proposes to
18 undertake or is undertaking state-funded response activities at
19 the property.
20 (c) The department of environmental quality determines that
21 the sale, retention, or transfer of the property other than under
22 this subsection would interfere with response activities by the
23 department of environmental quality.
24 Sec. 131. (1) The director of the department of natural
25 resources may withhold from sale any property that he or she
26 determines to be suitable for state forests, state parks, state
27 game refuges, public hunting, or recreational grounds. The
1 director of the department of natural resources may set a minimum
2 price for property not withheld from sale. Property not withheld
3 from sale and not held by a local tax collecting unit shall be
4 offered for sale by the director of the department of natural
5 resources, at a price to be determined by the director of the
6 department of natural resources, pursuant to 1873 PA 21,
7 MCL 322.261 to 322.266. A bid shall not be accepted for less
8 than the minimum price set by the director of the department of
9 natural resources. If no bids are received or accepted by the
10 director of the department of natural resources, the director of
11 the department of natural resources may sell the property to a
12 person applying to purchase the property at a price not less than
13 the minimum price affixed by the director of the department of
14 natural resources. The proceeds of the sale, after deducting
15 costs paid for maintaining the property in condition to protect
16 the public health and safety shall be accounted for to the state,
17 county, local tax collecting unit, and school district in which
18 the property is situated, pro rata according to their interests
19 in the property arising from the nonpayment of taxes and special
20 assessments on the property as that interest appears in the
21 offices of the state, county, city, and local tax collecting unit
22 treasurers. A person who purchases property under this section
23 shall, in addition to paying the purchase price, pay to the state
24 a fee of $10.00 per parcel of property purchased, plus 5% of the
25 purchase price. The $10.00 charge and 5% of the purchase price
26 shall be transmitted to
the state treasurer department of
27 treasury for deposit in the general fund of this state to the
1 credit of the delinquent property tax administration fund. This
2 section does not apply to sales conducted under section 78m. For
3 each parcel of property under the jurisdiction of the director of
4 the department of natural resources under this section, the
5 director of the department of natural resources shall continue to
6 perform the functions assigned under this section until the
7 parcel of property is transferred to the state land bank fast
8 track authority under section 20 of the land bank fast track act.
9 (2) A deed issued under this section shall remain subject to
10 any restrictions or notices approved by this state or the
11 foreclosing governmental unit and recorded with the register of
12 deeds pursuant to the natural resources and environmental
13 protection act, 1994 PA 451, MCL 324.101 to 324.90106.
14 Sec. 131e. (1) For all property the title to which vested
15 in this state under this section after October 25, 1976, the
16 redemption period on property deeded to the state under section
17 67a shall be extended until the owners of a recorded property
18 interest in the property have been notified of a hearing before
19 the department of
treasury. Proof of the notice of the a
20 hearing under this section shall be recorded with the register of
21 deeds in the county in which the property is located in a form
22 prescribed by the department of treasury. If a notice is
23 recorded in error, the department of treasury or a local unit of
24 government may correct the error by recording a certificate of
25 error with the register of deeds. A notice under this subsection
26 need not be notarized and may be authenticated by digital
27 signature or other electronic means.
1 (2) For all property the title to which vested in this state
2 under this section after October 25, 1976, 1 hearing shall be
3 held to allow each owner of a recorded property interest the
4 opportunity to show cause why the tax sale and the deed to the
5 state should be canceled for any reason specified in section 98.
6 The hearing shall be held after the expiration of the redemption
7 periods provided in section 131c. The department of treasury may
8 hold combined or separate show cause hearings for different
9 owners of a recorded property interest.
10 (3) For tax reverted property that was transferred to a local
11 unit of government under section 2101 or 2102 of the natural
12 resources and environmental protection act, 1994 PA 451, MCL
13 324.2101 and 324.2102, or under former section 461 of 1909 PA
14 223, if the local unit of government determines that the owner of
15 a recorded property interest was not properly served with a
16 notice of the hearing under this section, the local unit of
17 government may conduct a hearing to show cause why the tax sale
18 and tax deed to the state should be canceled for any reason
19 specified in section 98. Notice of the hearing shall be provided
20 to the department of treasury, which may provide evidence why the
21 tax sale and tax deed to the state should not be set aside. The
22 local unit of government may hold combined or separate show cause
23 hearings for different owners of a recorded property interest.
24 (4) (3) For
all property the title to which vested in this
25 state under this section after October 25, 1976, after expiration
26 of the redemption periods provided in section 131c, on the first
27 Tuesday in November after title to the property vests in this
1 state, an owner of a recorded property interest may redeem the
2 property up to 30 days following the date of hearing for that
3 owner of a recorded property interest provided by this section by
4 payment of the amounts
set forth in subsection (4) (5) and in
5 section 131c(1), plus an additional penalty of 50% of the tax on
6 which foreclosure was made. The additional penalty shall be
7 credited to the delinquent property tax administration fund. A
8 redemption under this section shall reinstate title as provided
9 in section 131c(4).
10 (5) (4) For
all property the title to which vested in this
11 state under this section after October 25, 1976, if property
12 redeemed under this section has been exempt from taxes levied in
13 any year after the year of foreclosure because a deed to that
14 property was issued to the state, an amount equal to the sum of
15 the following amounts shall be paid, as required by subsection
16 (3) (4), before redemption of the property:
17 (a) For taxes and ad valorem special assessments levied
18 before January 1, 1997, an amount computed by applying the
19 special assessment and ad valorem property tax rates levied by
20 taxing units in which the property is located in the years the
21 property was exempt against the most recently established state
22 equalized valuation of the property. For taxes and ad valorem
23 special assessments levied after December 31, 1996, an amount
24 computed by applying the special assessment and ad valorem
25 property tax rates levied by taxing units in which the property
26 is located in the years the property was exempt against the most
27 recently established taxable value of the property. For purposes
1 of this subsection, special assessments do not include special
2 assessments or special assessment installments deferred under
3 section 67a.
4 (b) If the levy of an ad valorem special assessment on the
5 property's taxable value is found to be invalid by a court of
6 competent jurisdiction, the levy of the ad valorem special
7 assessment may be levied on the property's state equalized
8 value.
9 (c) Interest on the delinquent taxes or special assessments
10 to be computed from the date title vested in this state to the
11 date of the application to redeem under this section.
12 (d) Interest and penalties on taxes and special assessments
13 identified by subdivision (a) that would have been imposed by law
14 or charter and would have accrued if the property had not been
15 exempt, computed from the date title vested in the state to the
16 date of the application to redeem under this section.
17 (6) (5) For
all property the title to which vested in this
18 state under this section after October 25, 1976, the owner of a
19 recorded property interest who has been properly served with a
20 notice of the a
hearing under this section and who fails to
21 redeem the property as provided under this section shall not
22 assert any of the following:
23 (a) That notice was insufficient or inadequate on the grounds
24 that some other owner of a property interest was not also
25 served.
26 (b) That the redemption period provided under this section
27 was extended in any way on the grounds that some other owner of a
1 property interest was not also served.
2 (7) For tax reverted property that was transferred to a local
3 unit of government under section 2101 or 2102 of the natural
4 resources and environmental protection act, 1994 PA 451, MCL
5 324.2101 and 324.2102, or under former section 461 of 1909 PA
6 223, the local unit of government may initiate an expedited quiet
7 title and foreclosure action to quiet title to the property in
8 the same manner as a land bank fast track authority under section
9 9 of the land bank fast track act. A local unit of government
10 may initiate an action under this subsection as an alternative to
11 a hearing by the local unit of government under this section.
12 (8) As used in this section, "local unit of government" means
13 a county, city, village, or township and includes a department or
14 agency of the county, city, village, or township.
15 Enacting section 1. Section 78i(12) of the general property
16 tax act, 1893 PA 206, MCL 211.78i, as added by this amendatory
17 act and section 78k(5) of the general property tax act, 1893 PA
18 206, MCL 211.78k, as amended by this amendatory act are curative
19 and are intended to express the original intent of the
20 legislature concerning the application of 1999 PA 123, section
21 78i of the general property tax act, 1893 PA 206, MCL 211.78i, as
22 amended by 2001 PA 101 and section 78k of the general property
23 tax act, 1893 PA 206, MCL 211.78k, as amended by 2001 PA 94.
24 Enacting section 2. Section 78p of the general property tax
25 act, 1893 PA 206, MCL 211.78p, is repealed.
26 Enacting section 3. This amendatory act is not intended to
27 and shall not be construed to modify or alter the ruling of the
House Bill No. 4484 as amended December 11, 2003
1 Michigan supreme court in Smith v <<Cliffs>> on the Bay Condominium
2 Association, docket no. 111587.
3 Enacting section 4. This amendatory act does not take
4 effect unless all of the following bills of the 92nd Legislature
5 are enacted into law:
6 (a) House Bill No. 4480.
7 (b) House Bill No. 4481.
8 (c) House Bill No. 4482.
9 (d) House Bill No. 4483.
10 (e) House Bill No. 4488.