HOUSE BILL No. 5726

 

March 30, 2004, Introduced by Reps. Palmer, Vander Veen, Acciavatti, Wenke, Ruth Johnson, Brandenburg, Stahl, Nitz, Huizenga and Pastor and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1993 PA 331, entitled                                             

                                                                                

    "State education tax act,"                                                  

                                                                                

    by amending section 5 (MCL 211.905), as amended by 2002 PA 244.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 5.  (1) Beginning in 1994 through 2002, the tax levied                 

                                                                                

2   under this act shall be collected and distributed by the local              

                                                                                

3   tax collecting unit under the provisions of the general property            

                                                                                

4   tax act at the same time as other taxes levied by the local                 

                                                                                

5   school district for school operating purposes.  However, in each            

                                                                                

6   year after 1993 if a local school district is not going to levy a           

                                                                                

7   tax in that summer but levied a tax in the summer of 1993, and              

                                                                                

8   the local tax collecting unit in which the local school district            

                                                                                

9   is located is collecting a tax for any taxing unit in that                  

                                                                                

10  summer, the local tax collecting unit shall collect within that             

                                                                                

11  local school district 1/2 of the tax under this act in that                 

                                                                                


                                                                                

1   summer.  The tax levied under this act that is collected by a               

                                                                                

2   city shall become a lien against the property on which assessed             

                                                                                

3   in the same manner and on the same date as city taxes or, if the            

                                                                                

4   city approves the collection of the tax levied under this act on            

                                                                                

5   a date other than the date it collects the city taxes, on                   

                                                                                

6   July 1.  The tax levied under this act that is collected with the           

                                                                                

7   city taxes shall be subject to the same penalties, interest, and            

                                                                                

8   collection charges as city taxes and, except as otherwise                   

                                                                                

9   provided in subsection (3), shall be returned as delinquent to              

                                                                                

10  the county treasurer in the same manner and with the same                   

                                                                                

11  interest, penalties, and fees as city taxes, except as provided             

                                                                                

12  in section 89a of the general property tax act, 1893 PA 206, MCL            

                                                                                

13  211.89a.                                                                    

                                                                                

14      (2) Beginning in 2003, the tax levied under this act shall be               

                                                                                

15  collected under the provisions of the general property tax act in           

                                                                                

16  a summer levy and shall be distributed as provided in this act.             

                                                                                

17  Except as otherwise provided in subsection (3) and section 5b,              

                                                                                

18  the tax levied under this act shall be collected by each city and           

                                                                                

19  township.                                                                   

                                                                                

20      (3) Notwithstanding the provision of a charter of a county                  

                                                                                

21  adopted pursuant to 1966 PA 293, MCL 45.501 to 45.521, or the               

                                                                                

22  provisions of the charter of a home rule city, to the contrary,             

                                                                                

23  the city treasurer of a city that does not return delinquent real           

                                                                                

24  property taxes levied by the city to the county treasurer shall             

                                                                                

25  return all uncollected delinquent taxes levied under this act to            

                                                                                

26  the county treasurer as provided by the general property tax act,           

                                                                                

27  1893 PA 206, MCL 211.1 to 211.157, on the March 1 immediately               


                                                                                

1   following the year in which the taxes are levied.  After the                

                                                                                

2   delinquent real property taxes are returned to the county                   

                                                                                

3   treasurer for collection under this section, the provisions of              

                                                                                

4   the general property tax act, 1893 PA 206, MCL 211.1 to 211.157,            

                                                                                

5   apply for the collection of those taxes and for the issuance of             

                                                                                

6   notes in anticipation of the collection of the taxes.                       

                                                                                

7       (4) Beginning in 2003, if a school district or intermediate                 

                                                                                

8   school district collects taxes in the summer under section 1613             

                                                                                

9   of the revised school code of 1976, 1976 PA 451, MCL 380.1613,              

                                                                                

10  the school district or intermediate school district shall collect           

                                                                                

11  the taxes levied under this act in the summer and shall                     

                                                                                

12  distribute the taxes collected as provided in this act.                     

                                                                                

13      (5) The state treasurer shall certify the levy of the tax                   

                                                                                

14  under this act pursuant to the general property tax act.                    

                                                                                

15      (6) The state treasurer upon receipt shall deposit the                      

                                                                                

16  collections from the tax into the state treasury to the credit of           

                                                                                

17  the state school aid fund.  Upon request by the local tax                   

                                                                                

18  collecting unit, if the local tax collecting unit collects the              

                                                                                

19  tax levied under this act, or by the school district or                     

                                                                                

20  intermediate school district, if the school district or                     

                                                                                

21  intermediate school district collects the tax levied under this             

                                                                                

22  act, the state treasurer shall return to the local tax collecting           

                                                                                

23  unit or to the school district or intermediate school district an           

                                                                                

24  amount erroneously collected or an amount required to be returned           

                                                                                

25  by court order in a bankruptcy proceeding.