November 10, 2016, Introduced by Senator COLBECK and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 625a, 681, 705, 1211, 1611, 1612, 1613, and
1724a (MCL 380.625a, 380.681, 380.705, 380.1211, 380.1611,
380.1612, 380.1613, and 380.1724a), section 625a as added by 1994
PA 258, section 681 as amended by 2007 PA 45, section 705 as
amended by 2016 PA 192, section 1211 as amended by 2012 PA 285,
sections 1611 and 1612 as amended and section 1613 as added by 1982
PA 333, and section 1724a as amended by 2004 PA 415, and by adding
section 1210; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 625a. (1) Except as provided in section 705, beginning in
1995, the board of an intermediate school district may levy ad
valorem property taxes for operating purposes at a rate not to
exceed 1.5 times the number of mills allocated to the intermediate
school district for those purposes in 1993 as provided for under
the
property tax limitation act, Act No. 62 of the Public Acts of
1933,
being sections 211.201 to 211.217a of the Michigan Compiled
Laws.1933 PA 62, MCL 211.201 to 211.217a.
(2) Beginning with taxes levied after December 31, 2016, the
revenue from taxes levied under this section shall be forwarded to
the state treasurer for deposit on an equal pro rata basis into the
education savings accounts of pupils residing in the intermediate
school district, as provided under section 43(14) of the general
property tax act, 1893 PA 206, MCL 211.43, to be used by each pupil
to pay for eligible services authorized under the Michigan parental
choice in education program act.
Sec. 681. (1) An intermediate school district may establish an
area career and technical education program and operate the program
under sections 681 to 690 if approved by a majority of the
intermediate school electors of the intermediate school district
voting on the question. The election shall be called and conducted
in accordance with this act and the Michigan election law. The
establishment of the area career and technical education program
may be rescinded by the same process.
(2) The question of establishing an area career and technical
education program may be submitted to the intermediate school
electors of an intermediate school district at a regular school
election or at a special election held in each of the constituent
districts. Subject to section 641 of the Michigan election law, MCL
168.641, the intermediate school board shall determine the date of
the election and shall give notice to the school district filing
official at least 60 days in advance of the date the ballot
question is to be submitted to the intermediate school electors.
(3) The ballot for referring the question of adopting sections
681 to 690 and establishing an area career and technical education
program to the intermediate school electors of an intermediate
school district shall be substantially in the following form:
"Shall ____________ (legal name of intermediate school
district), state of Michigan, come under sections 681 to 690 of the
revised school code and establish an area career and technical
education
program which that is designed to encourage the operation
of area career and technical education programs if the annual
property tax levied for this purpose is limited to ______ mills?
Yes ( )
No ( )".
(4) Beginning in 1995, and subject to section 625b, the number
of mills of ad valorem property taxes an intermediate school board
may levy for area career and technical education program operating
purposes under sections 681 to 690 is limited to the following:
(a) If the intermediate school district did not levy any
millage in 1993 for area career and technical education program
operating purposes under sections 681 to 690, the intermediate
school board, with the approval of the intermediate school
electors, may levy not more than 1 mill for those purposes.
(b) If the intermediate school district levied millage in 1993
for area career and technical education program operating purposes
under sections 681 to 690, the intermediate school board, with the
approval of the intermediate school electors, may levy mills for
those purposes at a rate not to exceed 1.5 times the number of
mills authorized for those purposes in the intermediate school
district in 1993. Approval of the intermediate school electors is
not required for the levy under this subdivision of previously
authorized mills until that authorization expires.
(5)
An Subject to subsection
(10), an intermediate school
district that levies a tax for area career and technical education
program operating purposes shall not use proceeds from the tax for
any purpose other than area career and technical education program
operating purposes and shall submit to the department of treasury a
copy of the audit report from the audit of the intermediate school
district conducted under section 622a. If the department of
treasury determines from the audit report that the proceeds from
the tax have been used for a purpose other than area career and
technical education program operating purposes, as defined under
subsection (7), the department of treasury shall notify the
intermediate school district of that determination. If the
intermediate school district disputes the determination or claims
that the situation has been corrected, within 15 days after receipt
of the determination the intermediate school district may submit an
appeal of the determination to the department of treasury. Within
90 days after receipt of the appeal, the department of treasury
shall consider the appeal and make a determination of whether the
initial determination was correct or incorrect and of whether the
situation has been corrected. If the department of treasury finds
that the initial determination was correct and that the situation
has not been corrected, then the department of treasury shall file
a copy of the report with the attorney general. The attorney
general shall review the report and, if the attorney general
considers it appropriate, shall commence or direct the prosecuting
attorney for the county in which the violations occurred to
commence appropriate proceedings against the intermediate school
board or the official or employee. These proceedings shall include
at least a civil action in a court of competent jurisdiction for
the recovery of any public money determined by the audit to have
been illegally expended and for the recovery of any public property
determined by the audit to have been converted or misappropriated.
(6) If the attorney general determines from a report filed
under subsection (5) that an intermediate school district has
misspent tax proceeds as described in subsection (5) and notifies
the intermediate school district of this determination, the
intermediate school district shall repay to its area career and
technical education program operating fund an amount equal to the
amount the department of treasury determined under subsection (5)
has been used for a purpose other than area career and technical
education program operating purposes. The intermediate school
district shall make this repayment from funds of the intermediate
school district that lawfully may be used for making such a
repayment.
(7) For the purposes of subsections (5) and (6), not later
than January 1, 2008, the department and the department of
treasury, in consultation with intermediate school districts, shall
develop and make available to intermediate school districts a
definition of area career and technical education program operating
purposes.
(8) An intermediate school district shall not hold more than 2
elections in a calendar year concerning the authorization of a
millage rate for area career and technical education program
operating purposes under sections 681 to 690.
(9) Within 30 days after receiving the audit results, an
intermediate school district shall publish the results of any audit
conducted concerning the area career and technical education
program on the intermediate school district's website. The results
shall remain posted on the website for at least 6 months.
(10) Beginning with taxes levied after December 31, 2016, the
proceeds from taxes levied under this section shall be forwarded to
the state treasurer for deposit on an equal pro rata basis into the
education savings accounts of pupils residing in the intermediate
school district, as provided under section 43(14) of the general
property tax act, 1893 PA 206, MCL 211.43, to be used by each pupil
to pay for eligible services authorized under the Michigan parental
choice in education program act.
Sec. 705. (1) Beginning in 1997, and in each year after 1997,
a regional enhancement property tax may be levied by an
intermediate school district at a rate not to exceed 3 mills to
enhance other state and local funding for local school district
operations if approved by a majority of the intermediate school
electors voting on the question.
(2) If a resolution requesting that the question of a regional
enhancement property tax be submitted to the voters is adopted
within a 180-day period and transmitted to the intermediate school
board by 1 or more boards of its constituent districts representing
a majority of the combined membership of the constituent districts
as of the most recent pupil membership count day and if those
resolutions all contain an identical specified number of mills to
be levied under this section and an identical specified number of
years for which the tax shall be levied, the question of levying a
regional enhancement property tax by the intermediate school
district shall be placed on the ballot by the intermediate school
district at the next regular school election held in each of the
constituent districts. If the question is to be submitted to the
intermediate school electors of an intermediate school district
having a population of more than 1,400,000, the intermediate school
board shall call a special election to be held at the next state
primary or general election. If the resolution requirement is met
more than 180 days before the next regular school district
elections, and if requested in the resolutions, the intermediate
school board shall submit the question of levying a regional
enhancement property tax within the intermediate school district on
the ballot at a special election called by the intermediate school
board for that purpose not earlier than 90 days after the
resolution requirements are met.
(3)
Not Subject to subsection
(6), not later than 10 days
after receipt by the intermediate school district of the revenue
from the regional enhancement property tax, the intermediate school
district shall calculate and pay to each of its constituent
districts an amount of the revenue calculated by dividing the total
amount of the revenue by the combined membership of the constituent
districts within the intermediate school district, as of the most
recent pupil membership count day, and multiplying that quotient by
the constituent district's membership, as of the most recent pupil
membership count day for which a final department-audited pupil
count is available. If a constituent district has entered into an
agreement with another school district or public entity to perform
the functions and responsibilities of the constituent district for
operating a public school of the constituent district, then for the
purposes of this subsection the pupils in membership in that public
school shall be considered to be in membership in the constituent
district and a proportionate share of the revenue payable to the
constituent district under this section shall be transferred by the
constituent district to the school district or public entity
performing the functions and responsibilities of the constituent
district for operating the public school. The proportionate share
of that revenue to be paid to that school district or public entity
shall be determined according to the percentage of the constituent
district's membership that is enrolled in the particular public
school for the state fiscal year corresponding to the tax year.
Revenue from a regional enhancement property tax under this section
shall not be allocated or paid to a constituent district that does
not operate a public school directly but retains a limited separate
identity for purposes of section 12, 12b, 863, 903, or 947.
(4) Regional enhancement property tax under this section may
be levied for a term not to exceed 20 years, as specified in the
ballot question, and may be renewed for the same term with the
approval of a majority of the intermediate school electors voting
on the question.
(5) The question of levying a regional enhancement property
tax under this section shall be presented to the intermediate
school electors as a separate question.
(6) Beginning with taxes levied after December 31, 2016, the
revenue from a regional enhancement property tax levied under this
section shall be forwarded to the state treasurer for deposit on an
equal pro rata basis into the education savings accounts of pupils
residing in the intermediate school district, as provided under
section 43(14) of the general property tax act, 1893 PA 206, MCL
211.43, to be used by each pupil to pay for eligible services
authorized under the Michigan parental choice in education program
act.
Sec. 1210. (1) In order to implement a school financing system
based on payments from education savings accounts under the
Michigan parental choice in education program act, not later than
March 1, 2017 the board of a school district or intermediate school
district or board of directors of a public school academy shall
submit to the department of treasury, in the form and manner
prescribed by the department of treasury, all of the following
information:
(a) A complete listing of all services provided to pupils by
the school district, intermediate school district, or public school
academy, broken down by core instructional services, other
instructional services, supplemental services, and back office
services. The board or board of directors shall map each of the
services to the funding source for the service.
(b) A detailed breakdown of the fully burdened costs to the
school district, intermediate school district, or public school
academy for providing each of the services listed in subdivision
(a).
(c) The content requirements and course descriptions
maintained by the school district, intermediate school district, or
public school academy for each course or subject offered, broken
down by subject area and grade level.
(d) Any other information requested by the department of
treasury related to services provided to pupils by the school
district, intermediate school district, or public school academy.
(2) Not later than June 1, 2017, based on the information
received under subsection (2), the department of treasury shall
prescribe all of the following for school districts, intermediate
school districts, and public school academies that receive funding
from education savings accounts created under the Michigan parental
choice in education savings program act:
(a) Minimum requirements for annual course loads for each
course or subject area that is supported by funding from education
savings accounts.
(b) Minimum requirements for course descriptions for each
course or subject area that is supported by funding from education
savings accounts, including a listing of any necessary any
predecessor courses. The minimum requirements shall be established
based on state educational standards.
(c) An enrollment process for enrolling a pupil in a course or
subject area and funding that enrollment by payment from the
pupil's education savings account. The enrollment process shall
include a process for making default selections on which courses
and subject areas a pupil will be enrolled in if the pupil's
parents choose not to engage in process of choosing the courses and
subject areas for enrollment.
(3) The department of treasury and a school district,
intermediate school district, or public school academy shall ensure
that parents have access to detailed information on the fully
burdened cost of each eligible service, including overhead for each
eligible service.
(4) Beginning with enrollment for the 2017-2018 school year, a
school district, intermediate school district, or public school
academy shall provide to parents clear information on which
eligible services are available from the school district,
intermediate school district, or public school academy.
(5) As used in this section, "eligible service" means a
service that may be purchased using an education savings account,
as prescribed by the department of treasury under the Michigan
parental choice in education program act.
Sec. 1211. (1) Except as otherwise provided in this section
and section 1211c, the board of a school district shall levy not
more than 18 mills for school operating purposes or the number of
mills levied in 1993 for school operating purposes, whichever is
less. A principal residence, qualified agricultural property,
qualified forest property, supportive housing property, property
occupied by a public school academy, and industrial personal
property are exempt from the mills levied under this subsection
except for the number of mills by which that exemption is reduced
under this subsection. Except as otherwise provided in subsection
(9), the board of a school district that had a foundation allowance
for the 1994-95 state fiscal year greater than $6,500.00 may reduce
the number of mills from which a principal residence, qualified
agricultural property, qualified forest property, supportive
housing property, property occupied by a public school academy, and
industrial personal property are exempted under this subsection by
up to the number of mills, as certified under section 1211a,
required to be levied on a principal residence, qualified
agricultural property, qualified forest property, supportive
housing property, property occupied by a public school academy, and
industrial personal property for the school district's combined
state and local revenue per membership pupil for the school fiscal
year ending in 1995 to be equal to the school district's foundation
allowance for the state fiscal year ending in 1995, and the board
also may levy in 1994 or a succeeding year that number of mills for
school operating purposes on a principal residence, qualified
agricultural property, qualified forest property, supportive
housing property, property occupied by a public school academy, and
industrial personal property.
(2) Subject to subsection (3), if the department of treasury
determines that the maximum number of mills allowed to be levied
under subsection (1) on all classes of property was not sufficient
for a school district's combined state and local revenue per
membership pupil for the school fiscal year ending in 1995 to be
equal to the school district's foundation allowance for that school
fiscal year, the board of the school district may levy in 1994 or a
succeeding year additional mills uniformly on all property up to
the number of mills required for the school district's combined
state and local revenue per membership pupil for the school fiscal
year ending in 1995 to be equal to the school district's foundation
allowance for the state fiscal year ending in 1995. However, the
board of a school district described in this subsection, by board
resolution, may elect to exempt each principal residence and all
qualified agricultural property, qualified forest property,
supportive housing property, property occupied by a public school
academy, and industrial personal property located in the school
district from some or all of the mills that the board is authorized
to levy under this subsection.
(3) After 1994, the number of mills a school district may levy
under this section on any class of property shall not exceed the
lesser of the number of mills the school district was certified by
the department of treasury under section 1211a to levy on that
class of property under this section in 1994 or the number of mills
required to be levied on that class of property under this section
to ensure that the increase from the immediately preceding state
fiscal year in the school district's combined state and local
revenue per membership pupil, calculated as if the school district
had levied the maximum number of mills the school district was
allowed to levy under this section regardless of the number of
mills the school district actually levied, does not exceed the
lesser of the dollar amount of the increase in the basic foundation
allowance under section 20 of the state school aid act of 1979, MCL
388.1620, from the immediately preceding state fiscal year or the
percentage increase in the general price level in the immediately
preceding calendar year. If the number of mills a school district
is allowed to levy under this section in a year after 1994 is less
than the number of mills the school district was allowed to levy
under this section in the immediately preceding year, any reduction
required by this subsection in the school district's millage rate
shall be calculated by first reducing the number of mills the
school district is allowed to levy under subsection (2) and then
increasing the number of mills from which a principal residence,
qualified agricultural property, qualified forest property,
supportive housing property, property occupied by a public school
academy, and industrial personal property are exempted under
subsection (1).
(4) Commercial personal property is exempt from 12 of the
mills levied under this section. However, if the number of mills
from which industrial personal property is exempted for a specific
school district is reduced under this section, then the number of
mills from which commercial personal property is exempted for that
school district shall be reduced by that same number of mills.
(5) Except as otherwise provided under this subsection,
millage levied under this section must be approved by the school
electors. For the purposes of this section, millage approved by the
school electors before January 1, 1994 for which the authorization
has not expired is considered to be approved by the school
electors. With the approval of the state treasurer, a school
district may pledge millage levied under this section for the
repayment of a loan under the emergency municipal loan act, 1980 PA
243, MCL 141.931 to 141.942, money borrowed by the school district
under section 1225, or the repayment of advances, overpayments, or
other obligations of the school district to this state under
section 15 of the state school aid act of 1979, MCL 388.1615.
(6) If a school district levies millage for school operating
purposes that is in excess of the limits of this section, the
amount of the resulting excess tax revenue shall be deducted from
the school district's next regular tax levy.
(7) If a school district levies millage for school operating
purposes that is less than the limits of this section, the board of
the school district may levy at the school district's next regular
tax levy an additional number of mills not to exceed the additional
millage needed to make up the shortfall.
(8) A school district shall not levy mills allocated under the
property tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a,
other than mills allocated to a school district of the first class
or a school district that was previously a school district of the
first class, for payment to a public library commission under
section 11(4) of the property tax limitation act, 1933 PA 62, MCL
211.211, after 1993.
(9) Beginning with taxes levied for 2011, if a school district
had a foundation allowance for the 1994-95 state fiscal year
greater than $6,500.00 and if the school district's foundation
allowance for the 2009-2010 state fiscal year was less than the
basic foundation allowance prescribed for the 2009-2010 state
fiscal year under section 20 of the state school aid act of 1979,
MCL 388.1620, the school district may not reduce the number of
mills from which certain classes of property are exempted from the
levy of millage under subsection (1) and may not levy that number
of mills on those classes of property as would otherwise be allowed
under subsection (1).
(10) Beginning with taxes levied after December 31, 2016, the
proceeds from taxes levied under this section shall be forwarded to
the state treasurer for deposit on an equal pro rata basis into the
education savings accounts of pupils residing in the school
district, as provided under section 43(14) of the general property
tax act, 1893 PA 206, MCL 211.43, to be used by each pupil to pay
for eligible services authorized under the Michigan parental choice
in education program act.
(11) (10)
As used in this section:
(a) "Combined state and local revenue per membership pupil"
means that term as defined in section 20 of the state school aid
act of 1979, MCL 388.1620.
(b) "Commercial personal property" means property classified
as commercial personal property under section 34c of the general
property tax act, 1893 PA 206, MCL 211.34c.
(c) "Foundation allowance" means a school district's
foundation allowance as calculated under section 20 of the state
school aid act of 1979, MCL 388.1620.
(d) "General price level" means that term as defined in
section 33 of article IX of the state constitution of 1963.
(e) "Industrial personal property" means the following:
(i) Except as otherwise provided in subparagraph (ii),
property classified as industrial personal property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(ii) Beginning December 31, 2011, industrial personal property
does not include a turbine powered by gas, steam, nuclear energy,
coal, or oil the primary purpose of which is the generation of
electricity for sale.
(f) "Membership" means that term as defined in section 6 of
the state school aid act of 1979, MCL 388.1606.
(g) "Owner", "person", "principal residence", and "qualified
agricultural property" mean those terms as defined in section 7dd
of the general property tax act, 1893 PA 206, MCL 211.7dd.
(h) "Property occupied by a public school academy" means
property occupied by a public school academy, urban high school
academy, or school of excellence that is used exclusively for
educational purposes.
(i) "Qualified forest property" means that term as defined in
section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj[1].
(j) "School operating purposes" includes expenditures for
furniture and equipment, for alterations necessary to maintain
school facilities in a safe and sanitary condition, for funding the
cost of energy conservation improvements in school facilities, for
deficiencies in operating expenses for the preceding year or
preceding years, including, but not limited to, repayment of an
emergency loan under the emergency municipal loan act, 1980 PA 243,
MCL 141.931 to 141.942, and for paying the operating allowance due
from the school district to a joint high school district in which
the school district is a participating school district under former
part 3a. Taxes levied for school operating purposes do not include
any of the following:
(i) Taxes levied by a school district for operating a
community college under part 25.
(ii) Taxes levied under section 1212.
(iii) Taxes levied under section 1356 for eliminating an
operating deficit.
(iv) Taxes levied for operation of a library under section
1451 or for operation of a library established pursuant to 1913 PA
261, MCL 397.261 to 397.262, that were not included in the
operating millage reported by the district to the department as of
April 1, 1993. However, a district may report to the department not
later than April 1, 1994 the number of mills it levied in 1993 for
a purpose described in this subparagraph that the school district
does not want considered as operating millage and then that number
of mills is excluded under this section from taxes levied for
school operating purposes.
(v) Taxes paid by a school district of the first class or a
school district that was previously a school district of the first
class to a public library commission pursuant to section 11(4) of
the property tax limitation act, 1933 PA 62, MCL 211.211.
(vi) Taxes levied under former section 1512 for operation of a
community swimming pool. In addition, if a school district included
the millage it levied in 1993 for operation of a community swimming
pool as part of its operating millage reported to the department
for 1993, the school district may report to the department not
later than June 17, 1994 the number of mills it levied in 1993 for
operation of a community swimming pool that the school district
does not want considered as operating millage and then that number
of mills is excluded under this section from taxes levied for
school operating purposes.
(k) "Supportive housing property" means real property
certified as supportive housing property under chapter 3B of the
state housing development authority act of 1966, 1966 PA 346, MCL
125.1459 to 125.1459a.
Sec. 1611. (1) Upon the approval of the city governing body
before January 1, 1983, the board of a school district or
intermediate school district situated in whole or in part in a city
may certify either the total or 1/2 of the levy of school property
taxes on the city portion of the school district or intermediate
school district. If certified, or if approval of the city governing
body is not given before January 1, 1983 and a city agrees or
elects pursuant to section 1613 to collect either the total or 1/2
of the levy of school taxes on the taxable property of the city
portion of the school district or intermediate school district, the
appropriate officials of that city in which the school district or
intermediate school district is located shall assess, spread, and
collect these school taxes and shall remit the collections to the
school
district, or intermediate school district, or state
treasurer as provided in Act No. 206 of the Public Acts of
1893,
being
sections 211.1 to 211.157 of the Michigan Compiled Laws.the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(2) Except where a city assessed and collected school taxes
pursuant
to this section prior to before
December 31, 1974,
reasonable expenses incurred by the city in assessing and
collecting the school taxes, to the extent that those expenses are
in addition to the expenses of assessing and collecting other taxes
at the same time and, except as otherwise agreed to by the city and
school district or intermediate school district, exceed the amount
of any fee and charge imposed by the city on collection of the
school
taxes, shall be billed to and paid by the school board of
education
or intermediate school board.
However, if these
additional reasonable expenses are allowed by this section to a
city exercising its option under section 1613(3), the following
limitations
shall apply:
(a) These additional reasonable expenses shall not exceed the
amount specified in the statement required by section 1613(4)(b) as
the actual cost of collection in addition to fees and charges
authorized by section 1613(4)(g) that the treasurer of the school
district, intermediate school district, or county has determined to
be imposed.
(b) The total reasonable expenses, without deduction because
the expense is part of the expense of assessing and collecting
other taxes at the same time and including fees and charges imposed
by the city on the collection of the school taxes, shall not exceed
the amount specified in the statement required by section
1613(4)(b) as the aggregate amount of the costs of collection the
district has determined to incur itself or the county treasurer may
receive from district payments and from fees and charges imposed
pursuant to section 1613(4)(g).
(3) In proceedings for the assessment, spreading, and
collection of taxes for school purposes in the school district or
intermediate school district, and for the receipt and disbursement
of money belonging to the school district or intermediate district,
the city assessing officer, city clerk, and city treasurer of the
city in which the school district or intermediate school district
is
situated shall have like have
the same powers and duties as
prescribed by the laws of this state for township supervisors,
township clerks, and township treasurers.
(4)
School taxes collected by a city shall become a lien
against the property on which assessed in the same manner and on
the same date as city taxes or, if the city approves the collection
of school taxes on a date other than the date it collects the city
taxes,
on July 1. The school taxes which that are collected with
the
city taxes shall be are subject to the same penalties,
interest, and collection charges as city taxes and shall be
returned as delinquent to the county treasurer in the same manner
and with the same interest, penalties, and fees as city taxes are
returned. School taxes collected by a city pursuant to this section
on
a date other than a date it collects city taxes shall be are
subject to the same fees and charges a city may impose under
section
44 of Act No. 206 of the Public Acts of 1893, being section
211.44
of the Michigan Compiled Laws. the
general property tax act,
1893 PA 206, MCL 211.44. School taxes collected pursuant to this
section on or before September 14 of each year by a city that
collects school taxes on a date other than the date it collects
city
taxes shall be without interest, but such those taxes
collected after September 14 in each year shall bear interest at
the
rate imposed by section 59 of Act No. 206 of the Public Acts of
1893,
being section 211.59 of the Michigan Compiled Laws, the
general property tax act, 1893 PA 206, MCL 211.59, on delinquent
property
tax levies which that became a lien in the same year. All
interest
and penalties that are imposed prior to before the date
these taxes are returned delinquent and that are attributable to
school
taxes other than collection fees shall belong to the school
district or intermediate school district. The collection fees if
imposed shall be retained by the city.
Sec. 1612. (1) Upon the approval of a township board before
January 1, 1983, the board of a school district or intermediate
school district may certify either the total or 1/2 of the levy of
school property taxes on the township portion of the school
district or intermediate school district. If certified, or if
approval of the township board is not given before January 1, 1983
and pursuant to section 1613 a township elects or agrees to collect
either the total or 1/2 of the total school taxes of a school
district or intermediate school district located in the township,
the township supervisor before June 30 of each year shall prepare
the assessment and tax rolls and furnish these rolls to each
affected township treasurer with the supervisor's collection
warrant
attached. thereto. Each township treasurer shall
proceed to
collect the taxes and remit the collections to the school district,
or
intermediate school district, or state treasurer as provided in
Act
No. 206 of the Public Acts of 1893, as amended, being sections
211.1
to 211.157 of the Michigan Compiled Laws. under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155. Except where a
township assessed and collected school taxes pursuant to this
section
prior to before December 31, 1974, reasonable expenses
incurred by the township in assessing and collecting the school
taxes, to the extent that the expenses are in addition to the
expenses of assessing and collecting any other taxes at the same
time and, except as otherwise agreed to by the township and school
district or intermediate school district, exceed the amount of any
fees and charges imposed by the township on collection of the
school taxes, shall be billed to and paid by the school board or
intermediate school board. However, if these additional reasonable
expenses are allowed by this section to a township exercising its
option
under section 1613(3), the following limitations shall
apply:
(a) These additional reasonable expenses shall not exceed the
amount specified in the statement required by section 1613(4)(b) as
the actual cost of collection in addition to fees and charges
authorized by section 1613(4)(g) that the treasurer of the school
district, intermediate school district, or county has determined to
be imposed.
(b) The total reasonable expenses, without deduction because
the expense is part of the expense of assessing and collecting
other taxes at the same time and including fees and charges imposed
by the township on the collection of the school taxes, shall not
exceed the amount specified in the statement required by section
1613(4)(b) as the aggregate amount of the costs of collection the
district has determined to incur itself or the county treasurer may
receive from district payments and from fees and charges imposed
pursuant to section 1613(4)(g).
(2)
School taxes collected by a township shall become a lien
against the property on which assessed on July 1. Taxes collected
on or before September 14 in each year shall be without interest.
Taxes collected after September 14 of any year shall bear interest
at
the rate imposed by section 59 of Act No. 206 of the Public Acts
of
1893, being section 211.59 of the Michigan Compiled Laws, the
general property tax act, 1893 PA 206, MCL 211.59, on delinquent
property
tax levies which that became a lien in the same year. The
school
taxes which are collected by a township shall be are subject
to the same fees and charges the township may impose under section
44
of Act No. 206 of the Public Acts of 1893, being section 211.44
of
the Michigan Compiled Laws. the
general property tax act, 1893
PA 206, MCL 211.44. All interest and penalties, other than
collection
fees, that are imposed prior to before
the date these
taxes are returned delinquent and that are attributable to school
taxes
shall belong to the school district or intermediate school
district. Interest and, to the extent permitted by section 44 of
Act
No. 206 of the Public Acts of 1893, the general property tax
act, 1893 PA 206, MCL 211.44, fees shall be included in the
delinquent tax rolls returned to the county treasurer as of March 1
of each year.
(3)
Act No. 206 of the Public Acts of 1893, as amended, shall
apply
The general property tax act,
1893 PA 206, MCL 211.1 to
211.155, applies to proceedings in relation to the assessment,
spreading, and collection of taxes for school purposes in the
school district or intermediate school district, and to the powers
and duties of the township supervisor and the township treasurer.
Sec. 1613. (1) By adoption of a resolution of its board before
February
1, 1983, or before January 1 in any year thereafter, after
1983, a school district or intermediate school district may
determine to impose a summer property tax levy, which resolution by
its terms may be applicable until revoked by the board of the
school district or intermediate school district or for levies in
any
year specified therein. in
the resolution. For each year such a
the resolution applies, the school district or intermediate school
district that has adopted the resolution shall request, before
February
1, 1983 or before January 1 in any year thereafter, after
1983, each city and township in which it is located to agree to
collect the summer levy in that year of either the total or 1/2, as
specified in the resolution, of the school property taxes. Notice
of
the meeting of the respective school district board or
intermediate
school district board at which this resolution will be
offered for adoption shall be published by the school district or
intermediate school district, not less than 6 days before holding
the meeting, in a newspaper of general circulation in the school
district or intermediate school district. This notice shall specify
the time, date, and place of the public meeting, shall be not less
than 8 vertical inches and 4 horizontal inches, shall be in not
less than 12-point type, shall be preceded by a headline in not
less than 18-point type stating "Notice of a public meeting to
institute a summer property tax levy", shall contain a concise
statement of the contents and purpose of the proposed resolution,
and shall not be placed in that portion of the newspaper reserved
for legal notices and classified advertisements. Upon receipt of
the request, the governing body of the city or township shall
negotiate the reasonable expenses for collection of the school
district's or intermediate school district's summer property tax
levy that the city or township may bill under section 1611 or 1612.
If a city or township and the school district or intermediate
school district reach an agreement within 30 days of receipt of the
district's request for the collection of the district's summer
property tax levy, including an agreement to the amount of
reasonable expenses that the city or township may bill under
section
1611 or 1612, section 1611 shall govern governs the other
terms
of a city's agreement and section 1612 shall govern governs
the other terms of a township's agreement.
(2) If a city or township and the school district or
intermediate
school district fail to reach an agreement pursuant to
under subsection (1) for the collection of the summer property tax
levy of a school district or intermediate school district subject
to subsection (3), the school district or intermediate school
district then may negotiate, until April 1, a proposed agreement
with the county treasurer to collect its summer property tax levy
against property located in that city or township. If a proposed
agreement with the county treasurer has not been reached by April
1, the school district or intermediate school district may
determine to serve as the property tax collecting unit and collect
its own summer property tax levy against property in that city or
township.
(3) If, pursuant to subsection (2), the school district or
intermediate school district has determined to collect its own
summer property tax levy or has reached a proposed agreement with a
county treasurer on the collection of its summer property tax levy
against property located in a city or township with which an
agreement to collect this levy could not be made pursuant to
subsection (1), the school district shall notify by April 15 that
city or township of the terms of the statement required by
subsection
(4)(b) and the city or township shall have has 15
days
in which to exercise an option to collect the school district's or
intermediate school district's summer property tax levy pursuant to
the terms of section 1611 or 1612.
(4) Collection of all or part of a school district's or
intermediate school district's property tax levy by a county
treasurer or by the school district or intermediate school district
shall comply with all of the following:
(a) Collection shall be either 1/2 or the total of the
property tax levy against the properties, as specified for that
year in the resolution of the school district or intermediate
school district.
(b)
The actual cost of the collection which the school
district or intermediate school district has agreed to incur itself
or to pay the county treasurer that is in addition to any fees
imposed pursuant to subdivision (g), and the aggregate amount of
costs of collection the district has agreed to incur or the county
treasurer may receive from district payments and from fees and
charges imposed pursuant to subdivision (g) shall be stated in
writing and reported to the state treasurer.
(c) Before June 30 the county treasurer or, if the school
district or intermediate school district is collecting its own
summer property tax levy, the treasurer of the school district or
intermediate school district shall spread the taxes being collected
in terms of millages on the assessment roll, assess the amount of
tax
levied in proportion to the state equalized valuation, taxable
value,
and prepare a tax roll which that commands
the appropriate
treasurer to collect on July 1 the taxes indicated as due on the
tax roll.
(d)
Taxes authorized to be collected shall become a lien
against the property on which assessed, and due from the owner of
that property, on July 1.
(e) Taxes shall be collected on or before September 14 and all
taxes and interest imposed pursuant to subdivision (f) unpaid
before March 1 shall be returned as delinquent on March 1. Taxes
delinquent under this subdivision shall be collected pursuant to
Act
No. 206 of the Public Acts of 1893, as amended.the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(f) Interest shall be added to taxes collected after September
14
at that rate imposed by section 59 of Act No. 206 of the Public
Acts
of 1893, being section 211.59 of the Michigan Compiled Laws,
the general property tax act, 1893 PA 206, MCL 211.59, on
delinquent
property tax levies which that
became a lien in the same
year.
(g) All or a portion of fees or charges, or both, authorized
under
section 44 of Act No. 206 of the Public Acts of 1893, being
section
211.44 of the Michigan Compiled Laws, the general property
tax act, 1893 PA 206, MCL 211.44, may be imposed on taxes paid
before March 1 and shall be retained by the treasurer actually
performing the collection of the summer property tax levy of the
school district or intermediate school district, regardless of
whether all or part of these fees or charges, or both, have been
waived by the township or city.
(5)
An Subject to subsection
(14), an agreement for the
collection of a summer property tax levy of a school district or
intermediate school district with a county treasurer shall include
a schedule for delivering collections to the school district or
intermediate school district.
(6) To the extent applicable and consistent with the
requirements
of this section, the provisions of Act No. 206 of the
Public
Acts of 1893, shall apply the
general property tax act, 1893
PA 206, MCL 211.1 to 211.155, applies to proceedings in relation to
the assessment, spreading, and collection of taxes pursuant to this
section. Additionally, in relation to the assessment, spreading,
and collection of taxes pursuant to this section, the county
treasurer or, if the district is collecting its own summer property
tax levy, the treasurer of the school district or intermediate
school
district shall have has
the same powers and duties similar
to
as those prescribed by Act No. 206 of the Public
Acts of 1893,
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,
for township supervisors, township clerks, and township treasurers.
However,
this section shall not be considered to does not transfer
any authority over the assessment of property.
(7) If a county treasurer or the treasurer of a school
district or intermediate school district collects the summer
property tax levy of the school district or intermediate school
district, the township or city shall deliver by June 1 a certified
copy
of the assessment roll containing state equalized valuations
taxable values for each parcel of taxable property in the township
or city to the treasurer collecting the summer property tax levy of
the school district or intermediate school district. The county
treasurer or the treasurer of a school district or intermediate
school district receiving this certified copy of the assessment
roll shall remit the necessary cost incident to the reproduction of
the assessment roll to the township or city.
(8) A county treasurer or treasurer of a school district or
intermediate school district collecting taxes pursuant to this
section shall be bonded for tax collection in the same amount and
in the same manner as a township treasurer would be for undertaking
the duties prescribed by this section.
(9) An agreement for the collection of a summer property tax
levy between a school district or intermediate school district and
a county may cover summer collections for 2 years. If an agreement
covers summer collections for 2 years, the resolution and request
required by subsection (1), the notice required by subsection (2),
and
the option to reconsider provided by subsection (3) shall do
not apply for summer collections in the second year.
(10) If collections are made pursuant to this section by a
county treasurer or by the treasurer of a school district or
intermediate school district, all payments from a school district
or intermediate school district for collecting its summer property
tax levy and all revenues generated from collection fees shall be
deposited, when received or collected, in a current school tax
collection fund, which fund shall be used by the county treasurer
or treasurer of the school district or intermediate school district
to pay for the cost of collecting the district's summer property
tax levy. The current school tax collection fund shall be
segregated from all other funds and once the current school tax
collection fund has been established money shall not be withdrawn
except upon an order, check, or draft of the collecting treasurer
for the purpose of paying 1 or more of the following costs:
(a) The cost of special deputy treasurers and equipment
directly involved in the collection of current property taxes.
(b) The cost of all services determined necessary by the
collecting treasurer to collect the summer property tax levy of the
school district or intermediate school district.
(c) The contract payments to any person, firm, or corporation
employed by the collecting treasurer to assist in the collection of
the current property taxes.
(11) All surplus money in a current school tax collection fund
shall be invested by the collecting treasurer in any investment
authorized
by Act No. 20 of the Public Acts of 1943, being sections
129.91
to 129.93 of the Michigan Compiled Laws. 1943 PA 20, MCL
129.91 to 129.97a. The county treasurer and the treasurer of a
school district or intermediate school district shall publish, on
March 1 of the year after the treasurer first collects the summer
property tax levy of a school district or intermediate school
district and each year thereafter, an annual report on the status
of
the fund for the last most
recent year ending December 31. The
report shall show the total charges, expenses, and year-end
surplus.
(12) Money in the current school tax collection fund shall not
be transferred to the general fund of the county, school district,
or intermediate school district or made the subject of
appropriation by the county, school district, or intermediate
school district. Any surplus in a current school tax collection
fund shall be used by the county treasurer, school district
treasurer, or intermediate school district treasurer to reduce the
following costs for the next summer property tax levy of a school
district or intermediate school district that is collected by the
county treasurer, school district treasurer, or intermediate school
district treasurer:
(a) The costs of collection, in excess of fees and charges,
incurred or paid pursuant to subsection (4)(b).
(b) The fees and charges imposed pursuant to subsection
(4)(g).
(13) A city treasurer, township treasurer, county treasurer,
school district treasurer, or intermediate school district
treasurer that collects pursuant to this section, section 1611, or
section 1612 the summer property tax levy of a school district or
intermediate school district against property eligible for a
deferral
of summer property taxes under section 51 of Act No. 206
of
the Public Acts of 1893, being section 211.51 of the Michigan
Compiled
Laws, the general property
tax act, 1893 PA 206, MCL
211.51,
and, if not otherwise eligible for
deferral thereunder,
under that section, against property classified as agricultural
real property if the gross receipts of the agricultural or
horticultural operations in the previous year or the average gross
receipts of such operations in the previous 3 years are not less
than the household income of the owner in the previous year shall
defer the collection of these summer property taxes without penalty
or interest until the following February 15 upon a filing by the
taxpayer of an intent to defer with the property tax collecting
treasurer
in the same manner as provided by section 51 of Act No.
206
of the Public Acts of 1893. the
general property tax act, 1893
PA 206, MCL 211.51. The treasurer of a city, township, school
district, intermediate school district, or county who collects the
summer property tax levy of a school district or intermediate
school district also shall comply with the publication and
assistance
requirements of section 51 of Act No. 206 of the Public
Acts
of 1893, the general property
tax act, 1893 PA 206, MCL
211.51, with respect to property eligible for a deferral under this
subsection.
(14) Beginning with taxes levied after December 31, 2016, the
revenue from taxes collected under this section that were levied
under section 625a, 681, 705, 1211, or 1724a shall be forwarded to
the state treasurer for deposit on an equal pro rata basis into the
education savings accounts of pupils residing in the school
district or intermediate school district that levied that tax, as
provided under section 43(14) of the general property tax act, 1893
PA 206, MCL 211.43, to be used by each pupil to pay for eligible
services authorized under the Michigan parental choice in education
program act.
Sec. 1724a. (1) Beginning in 1995, and subject to section
625b, the board of an intermediate school district may levy ad
valorem property taxes for special education purposes under
sections 1722 to 1729 at a rate not to exceed 1.75 times the number
of mills of those taxes authorized in the intermediate school
district in 1993. All or part of the millage levied under this
section may be renewed as provided in this article. Approval of the
intermediate school electors is not required for the levy under
this section of previously authorized mills until that
authorization expires.
(2)
An Subject to subsection
(6), an intermediate school
district that levies a tax for special education operating purposes
shall not use proceeds from the tax for any purpose other than
special education operating purposes and shall submit to the
department of treasury a copy of the audit report from the audit of
the intermediate school district conducted under section 622a. If
the department of treasury determines from the audit report that
the proceeds from the tax have been used for a purpose other than
special education operating purposes, as defined under subsection
(4), the department of treasury shall notify the intermediate
school district of that determination. If the intermediate school
district disputes the determination or claims that the situation
has been corrected, within 15 days after receipt of the
determination the intermediate school district may submit an appeal
of the determination to the department of treasury. Within 90 days
after receipt of the appeal, the department of treasury shall
consider the appeal and make a determination of whether the initial
determination was correct or incorrect and of whether the situation
has been corrected. If the department of treasury finds that the
initial determination was correct and that the situation has not
been corrected, then the department of treasury shall file a copy
of the report with the attorney general. The attorney general shall
review the report and, if the attorney general considers it
appropriate, shall commence or direct the prosecuting attorney for
the county in which the violations occurred to commence appropriate
proceedings against the intermediate school board or the official
or employee. These proceedings shall include at least a civil
action in a court of competent jurisdiction for the recovery of any
public money determined by the audit to have been illegally
expended and for the recovery of any public property determined by
the audit to have been converted or misappropriated.
(3) If the attorney general determines from a report filed
under subsection (2) that an intermediate school district has
misspent tax proceeds as described in subsection (2) and notifies
the intermediate school district of this determination, the
intermediate school district shall repay to its special education
operating fund an amount equal to the amount the department of
treasury determined under subsection (2) has been used for a
purpose other than special education operating purposes. The
intermediate school district shall make this repayment from funds
of the intermediate school district that lawfully may be used for
making such a repayment.
(4) For the purposes of subsections (2) and (3), the
department and the department of treasury, in consultation with
intermediate school districts, shall develop and make available to
intermediate school districts a definition of special education
operating purposes.
(5) An intermediate district shall not hold more than 2
elections in a calendar year concerning the authorization of a
millage rate for special education purposes under sections 1722 to
1729.
(6) Beginning with taxes levied after December 31, 2016, the
proceeds from taxes levied under this section shall be forwarded to
the state treasurer for deposit on an equal pro rata basis into the
education savings accounts of pupils residing in the intermediate
school district who qualify for special education programs and
services, as provided under section 43(14) of the general property
tax act, 1893 PA 206, MCL 211.43, to be used by each pupil to pay
for eligible services authorized under the Michigan parental choice
in education program act.
Enacting section 1. Part 18 of the revised school code, 1976
PA 451, MCL 380.1401 to 380.1416, is repealed effective August 1,
2017.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No.____ (request no.
05943'16).
(b) Senate Bill No.____ or House Bill No.____ (request no.
06480'16).
(c) Senate Bill No.____ or House Bill No.____ (request no.
06483'16).
(d) Senate Bill No.____ or House Bill No.____ (request no.
06484'16).