HOUSE BILL No. 4285

 

 

March 1, 2017, Introduced by Rep. Lucido and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 47 and 89a (MCL 211.47 and 211.89a), section

 

47 as amended by 1994 PA 253 and section 89a as amended by 2008 PA

 

512.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 47. (1) If a person, firm, or corporation neglects or

 

refuses to pay a tax on property assessed to that person, firm, or

 

corporation, the township or city treasurer, as the case may be,

 

appropriate, shall, or for the state education tax levied under the

 

state education tax act, Act No. 331 of the Public Acts of 1993,

 

being sections 211.901 to 211.906 of the Michigan Compiled Laws,

 

1993 PA 331, MCL 211.901 to 211.906, the state treasurer may also,

subject to subsection (4), collect the tax by seizing the personal

 

property of that person, firm, or corporation in this state, in an

 

amount sufficient to pay the tax, the fees, and the charges, for

 

subsequent sale of the property, and no property is exempt. The

 

treasurer may sell the property seized, in an amount sufficient to

 

pay the taxes and all charges, at public auction in the place where

 

seized or in the township or city of which he or she is treasurer

 

or for the state treasurer, anywhere in the state. The treasurer

 

shall give public notice of the auction at least 5 days before the

 

sale by posting written or printed notices in 3 public places in

 

the township, village, or city where the sale is to be made. The

 

sale may be adjourned from time to time if the treasurer considers

 

it necessary. If the property is seized and advertised, the sale

 

may take place at any time within 6 days after the expiration of

 

the warrant of sale. If it is necessary to sell personal property

 

that brings more than the amount of taxes and charges, the balance

 

shall be returned to the person, firm, or corporation from whose

 

possession the property was taken. However, if the state seizes and

 

sells property and the sale brings more than the amount of the

 

state education tax and charges due, the state shall distribute the

 

balance on a pro rata basis to any other local taxing units to

 

which delinquent personal property taxes on that property remain

 

unpaid. If the property so seized under this section cannot be sold

 

for want of bidders, and in that case only, the treasurer shall

 

return a statement of that fact and the tax shall be returned as

 

unpaid.

 

     (2) Notwithstanding or in lieu of subsection (1), and subject

to subsection (4), the township or city treasurer, in the name of

 

the township, village, or city, or the state treasurer in the name

 

of the state may sue the person, firm, or corporation to whom the

 

tax is assessed and garnishee any debtor or debtors of that person.

 

, firm, or corporation. The tax roll shall be is prima facie

 

evidence of the debt sought to be recovered.

 

     (3) If a person, firm, or corporation having possession of

 

that possesses the personal property of any other another person,

 

firm, or corporation is assessed for that property and is obliged

 

to pay pays the taxes on the property, the person, firm, or

 

corporation paying the taxes may recover in a civil action from the

 

person, firm, or corporation for whose benefit the taxes were paid

 

, the money paid with the applicable interest.

 

     (4) Notwithstanding any other provision in this act or charter

 

to the contrary, a person is not subject to personal liability for

 

any unpaid property tax or special assessment unless that person

 

owned or occupied the property at the time the unpaid tax or

 

special assessment became due. A person contesting personal

 

liability under this subsection may raise the issue in an

 

enforcement action in circuit court regardless of whether the

 

person previously raised the issue with the local board of review

 

or the tax tribunal.

 

     (5) As used in this section, "person" means an individual,

 

partnership, corporation, association, limited liability company,

 

or any other legal entity.

 

     Sec. 89a. (1) Notwithstanding the provisions of a charter of a

 

county adopted pursuant to 1966 PA 293, MCL 45.501 to 45.521, or

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

 

the city treasurer of a city with a population of 600,000 or more

 

shall return all uncollected delinquent taxes levied on real

 

property after December 31, 2002 on the March 1 immediately

 

following the year in which the taxes are levied. For the purposes

 

of this section, delinquent taxes include all interest and

 

penalties that accrue after August 15 of the year in which all

 

taxes billed by the city are levied if that interest and penalty

 

remain unpaid on the date the delinquent taxes are returned to the

 

county treasurer.

 

     (2) The city treasurer of a city with a population of 600,000

 

or more may return all uncollected delinquent taxes levied in 2001,

 

2002, or 2001 and 2002 to the county treasurer for collection under

 

this section on March 1, 2004. A city treasurer shall provide the

 

county treasurer written notice of his or her intent to return

 

uncollected delinquent taxes levied in 2001 or 2002 under this

 

subsection not later than February 1, 2004. If uncollected

 

delinquent taxes levied in 2001 or 2002 are returned to the county

 

treasurer for collection under this subsection, the county

 

treasurer shall collect those taxes with taxes returned as

 

delinquent in 2004.

 

     (3) After the delinquent taxes levied on real property are

 

returned to the county treasurer for collection under this section,

 

the provisions of this act apply for collection of those taxes and,

 

except for taxes levied on or before December 31, 2002, for the

 

issuance of notes in anticipation of the collection of those taxes.

 

     (4) A judgment entered under section 78k that extinguishes any

lien for unpaid taxes or special assessments does not extinguish

 

the right of the city to bring an in personam action under this act

 

or its charter to enforce personal liability for those unpaid taxes

 

or special assessments. The city may bring an in personam action to

 

enforce personal liability for unpaid delinquent taxes levied prior

 

to January 1, 2003 or special assessments not returned as

 

delinquent under this section within 15 years after the taxes or

 

special assessments are levied. An in personam action brought under

 

this act or a city's charter to enforce personal liability for

 

unpaid taxes or special assessments is subject to section 47(4).

 

     (5) If a city treasurer returns uncollected delinquent taxes

 

levied on real property on or before December 31, 2002 to the

 

county treasurer for collection under this section, the county

 

treasurer shall remit to the city treasurer after each month the

 

taxes and interest collected during that month.

 

     Enacting section 1. This amendatory act is retroactive and is

 

effective for any unpaid property taxes or special assessments

 

subject to collection under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155, on and after the date this amendatory

 

act is enacted into law. However, this amendatory act is not

 

intended to affect any final determination, not subject to further

 

appeal, of personal liability in a proceeding or case decided by

 

the tax tribunal or a court of this state issued before the date

 

this amendatory act is enacted into law.