HOUSE BILL No. 5891

 

February 24, 2010, Introduced by Rep. Huckleberry and referred to the Committee on Intergovernmental and Regional Affairs.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

(MCL 211.1 to 211.155) by adding section 50.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 50. (1) A local tax collecting unit with a population of

 

less than 4,000 as determined by the most recent federal decennial

 

census shall obtain an audit of its property tax collection

 

records, property tax collection accounts, and property tax

 

collection procedures not less frequently than biennially. However,

 

if any audit under this subsection discloses a material deviation

 

by the local tax collecting unit from generally accepted accounting

 

principles or from applicable rules and regulations issued by the

 

state tax commission or the department of treasury or discloses any

 


fiscal irregularity, defalcation, misfeasance, nonfeasance, or

 

malfeasance, the department of treasury may require an audit to be

 

conducted in the next year.

 

     (2) A local tax collecting unit with a population of 4,000 or

 

more as determined by the most recent federal decennial census

 

shall obtain an annual audit of its property tax collection

 

records, property tax collection accounts, and property tax

 

collection procedures.

 

     (3) A local tax collecting unit may retain a certified public

 

accountant to perform the audits required under this section. If

 

any local tax collecting unit fails to conduct an audit required

 

under this section, the department of treasury shall either conduct

 

the audit or appoint a certified public accountant to conduct the

 

audit.

 

     (4) The entire cost of any audit conducted under this section

 

is the responsibility of the local tax collecting unit.