SB-1112, As Passed House, September 22, 2004                                

SUBSTITUTE FOR

SENATE BILL NO. 1112

                                                                             A bill to amend 1893 PA 206, entitled                                             

"The general property tax act,"                                             

by amending section 44a (MCL 211.44a), as added by 1993 PA 313.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 44a.  (1) Notwithstanding any other statutory or                       

2   charter provision to the contrary, beginning in 2005 and each               

3   year after 2005, a county  in which 1 or more local units of                

4   government levies a summer property tax may by resolution of its            

5   governing body determine to shall impose  in 1995 one quarter              

6   of, in 1996 one half of and for collections after 1996 all or one           

7   half of its property tax levy  as a summer property tax levy  in            

8   those local units of government where a summer tax is being                 

9   collected by the local tax collecting treasurer.  The resolution            

10  by its terms may be applicable until revoked by the governing               

11  body of the county. that portion of the number of mills                    

1   allocated to the county by a county tax allocation board or                 

2   authorized for the county through a separate tax limitation vote            

3   as provided in this section.  The treasurer that collects the               

4   state education tax shall collect the summer property tax levy              

5   under this section.  The portion of the total number of mills               

6   allocated to a county by a county tax allocation board or                   

7   authorized for a county through a separate tax limitation vote              

8   that shall be imposed in each year as a summer property tax levy            

9   under this section is as follows:                                           

10      (a) In 2005, 1/3 of the total number of mills allocated to                  

11  the county by a county tax allocation board or authorized for the           

12  county through a separate tax limitation vote.                              

13      (b) In 2006, 2/3 of the total number of mills allocated to                  

14  the county by a county tax allocation board or authorized for the           

15  county through a separate tax limitation vote.                              

16      (c) In 2007 and each year after 2007, the total number of                   

17  mills allocated to the county by a county tax allocation board or           

18  authorized for the county through a separate tax limitation vote.

19      (2)  Upon adoption of a resolution authorized by subsection                 

20  (1), the county shall notify by April 15 of each year each                  

21  applicable local tax collecting unit of its determination to                

22  impose a summer property tax levy in that year.  Before June 30             

23  and in conformance with the procedures prescribed by this act,              

24  the taxes being collected as a summer property tax levy shall be            

25  spread in terms of millages on the assessment roll, the amount of           

26  tax levied shall be assessed in proportion to the  state                    

27  equalized valuation taxable value, and a tax roll shall be                 

1   prepared  which that commands the appropriate treasurer to                 

2   collect on July 1 the taxes indicated as due on the tax roll.               

3       (3) Taxes authorized to be collected shall become a lien                    

4   against the property on which assessed, and due from the owner of           

5   that property on July 1.                                                    

6       (4)  Taxes shall be collected on or before September 14 and                 

7   all All taxes and interest imposed pursuant to this section that           

8   are unpaid before March 1 shall be returned as delinquent on                

9   March 1 and collected pursuant to this act.                                 

10      (5) Interest shall be added to taxes collected after                        

11  September 14 at that rate imposed by section  59 78a on                    

12  delinquent property tax levies  which that became a lien in the            

13  same year.  The tax levied under this act that is collected with            

14  the city taxes shall be subject to the same penalties, interest,            

15  and collection charges as city taxes and shall be returned as               

16  delinquent to the county treasurer in the same manner and with              

17  the same interest, penalties, and fees as city taxes.

18      (6) All or a portion of the fees or charges, or both,                       

19  authorized under section 44 may be imposed on taxes paid before             

20  March 1 and shall be retained by the treasurer actually                     

21  performing the collection of the summer property tax levy                   

22  pursuant to this section, regardless of whether all or part of              

23  these fees or charges, or both, have been waived by the township            

24  or city.                                                                    

25      (7) Collections shall be remitted to the county for which the               

26  taxes were collected pursuant to section 43.                                

27      (8) To the extent applicable and consistent with the                        

1   requirements of this section, this act shall apply to proceedings           

2   in relation to the assessment, spreading, and collection of taxes           

3   pursuant to this section.                                                   

4   (9) This section is effective for property tax collections                  

5   in 1995 and after 1995 if the sales tax is levied at a rate of 4%           

6   under the general sales tax act, Act No. 167 of the Public Acts             

7   of 1933, being sections 205.51 to 205.78 of the Michigan Compiled           

8   Laws.

9   (9) Each county shall establish a restricted fund known as                  

10  the revenue sharing reserve fund.  The total amount required to             

11  be placed in the revenue sharing reserve fund for each county               

12  shall equal the amount of that county's December 2004 property              

13  tax levy of the total number of mills allocated to the county by            

14  a county tax allocation board or authorized for the county                  

15  through a separate tax limitation vote and shall be deposited in            

16  the revenue sharing reserve fund as provided in this section.               

17  Revenues credited to the revenue sharing reserve fund from the              

18  December tax levy of a county with a fiscal year ending                     

19  December 31 shall be accrued to the fiscal year ending in the               

20  year of that December property tax levy.  Revenue shall be                  

21  credited to the fund by each county as follows:                             

22      (a) From the county's December 2004 property tax levy, 1/3 of               

23  the total December levy of the total number of mills allocated to           

24  the county by a county tax allocation board or authorized for the           

25  county through a separate tax limitation vote.                              

26      (b) From the county's December 2005 property tax levy, 1/2 of               

27  the remaining balance required to be deposited in the fund.                 

1       (c) From the county's December 2006 property tax levy, the                  

2   balance required to be deposited in the fund.                               

3   (10) All of the following apply to a revenue sharing reserve                

4   fund established under subsection (9):                                      

5       (a) Funds in the revenue sharing reserve fund may not be                    

6   expended in any fiscal year except as provided in this section.             

7       (b) Funds in the revenue sharing reserve fund may be used                   

8   within a county fiscal year for cash flow purposes at the                   

9   discretion of the county.                                                   

10      (c) Interest earnings on funds deposited in the revenue                     

11  sharing reserve fund shall be credited to the revenue sharing               

12  reserve fund.  However, the county is not required to reimburse             

13  the revenue sharing reserve fund for a reduction of interest                

14  earnings that occurs because funds in the revenue sharing reserve           

15  fund were used for cash flow purposes.                                      

16      (d) The revenue sharing reserve fund shall be separately                    

17  reported in the annual financial report required under section 4            

18  of 1919 PA 71, MCL 21.44.                                                   

19      (11) For a county fiscal year that ends on December 31, 2004,               

20  a county may expend in that fiscal year an amount not to exceed             

21  the payments made to that county under the Glenn Steil state                

22  revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921,           

23  in October and December 2003 and, if the payment is accrued back            

24  to the county's 2003 fiscal year, February 2004.                            

25      (12) Not later than March 1, 2005, a county that receives a                 

26  payment in October 2004 as provided in a bill making                        

27  appropriations to the department of treasury for the 2004-05                

1   fiscal year shall pay the amount of that payment to the state               

2   treasurer from the revenue sharing reserve fund.  A county that             

3   does not make the payment required under this subsection shall              

4   not make any expenditures from the fund provided under subsection           

5   (13).                                                                       

6       (13) For each fiscal year of a county that begins after                     

7   September 30, 2004, a county may expend from the revenue sharing            

8   reserve fund an amount not to exceed the total payments made to             

9   that county under the Glenn Steil state revenue sharing act of              

10  1971, 1971 PA 140, MCL 141.901 to 141.921, in the state fiscal              

11  year ending September 30, 2004, adjusted annually by the                    

12  inflation rate, without regard to any executive orders issued               

13  after May 17, 2004.  As used in this subsection, "inflation rate"           

14  means that term as defined in section 34d.