HOUSE BILL No. 5481

 

December 1, 2005, Introduced by Reps. Drolet, Gosselin, Steil, Hoogendyk and Palmer and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 44a (MCL 211.44a), as amended by 2004 PA 357.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

provision to the contrary,  beginning  in 2005  and each year after

 

2005  only, a county shall impose as a summer property tax levy

 

that portion of the number of mills allocated to the county by a

 

county tax allocation board or authorized for the county through a

 

separate tax limitation vote as provided in this section. The

 

treasurer that collects the state education tax shall collect the

 

summer property tax levy under this section.  The portion of the

 

total number of mills allocated to a county by a county tax

 


allocation board or authorized for a county through a separate tax

 

limitation vote that shall be imposed in each year as a summer

 

property tax levy under this section is as follows:

 

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

 

county by a county tax allocation board or authorized for the

 

county through a separate tax limitation vote.

 

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

 

county by a county tax allocation board or authorized for the

 

county through a separate tax limitation vote.

 

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

 

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

 

authorized for the county through a separate tax limitation vote.

 

In 2005 only, any mills allocated to the county by a county tax

 

allocation board or authorized for the county through a separate

 

tax limitation vote that are not collected as a summer property tax

 

levy shall be collected in the December levy. In 2006 and each year

 

after 2006, a county may impose as a summer property tax levy that

 

portion of the number of mills allocated to the county by a county

 

tax allocation board or authorized for the county through a

 

separate tax limitation vote as provided in this section.

 

     (2) Before June 30 and in conformance with the procedures

 

prescribed by this act, the taxes being collected as a summer

 

property tax levy shall be spread in terms of millages on the

 

assessment roll, the amount of tax levied shall be assessed in

 

proportion to the taxable value, and a tax roll shall be prepared

 

that commands the appropriate treasurer to collect on July 1 the

 

taxes indicated as due on the tax roll.

 


     (3) 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.

 

     (4) All taxes and interest imposed pursuant to this section

 

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

 

March 1 and collected pursuant to this act.

 

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

 

14 at that rate imposed by section 78a on delinquent property tax

 

levies that became a lien in the same year. The tax levied under

 

this act that is collected with the city taxes shall be 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.

 

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

 

authorized under section 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 pursuant to this

 

section, regardless of whether all or part of these fees or

 

charges, or both, have been waived by the township or city.

 

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

 

taxes were collected pursuant to section 43.

 

     (8) To the extent applicable and consistent with the

 

requirements of this section, this act shall apply to proceedings

 

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

 

pursuant to this section.

 

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

 


revenue sharing reserve fund. The total amount required to be

 

placed in the revenue sharing reserve fund for each county shall

 

equal the amount of that county's December 2004 property tax levy

 

of the total number of mills allocated to the county by a county

 

tax allocation board or authorized for the county through a

 

separate tax limitation vote and shall be deposited in the revenue

 

sharing reserve fund as provided in this section. Revenues credited

 

to the revenue sharing reserve fund from the December tax levy of a

 

county with a fiscal year ending December 31 shall be accrued to

 

the fiscal year ending in the year of that December property tax

 

levy. Revenue shall be credited to the fund by each county as

 

follows:

 

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

 

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

 

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

 

county through a separate tax limitation vote.

 

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

 

the remaining balance required to be deposited in the fund.

 

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

 

balance required to be deposited in the fund.

 

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

 

fund established under subsection (9):

 

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

 

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

 

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

 

within a county fiscal year for cash flow purposes at the

 

discretion of the county.

 


     (c) Interest earnings on funds deposited in the revenue

 

sharing reserve fund shall be credited to the revenue sharing

 

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

 

revenue sharing reserve fund for a reduction of interest earnings

 

that occurs because funds in the revenue sharing reserve fund were

 

used for cash flow purposes.

 

     (d) The revenue sharing reserve fund shall be separately

 

reported in the annual financial report required under section 4 of

 

1919 PA 71, MCL 21.44.

 

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

 

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

 

payments made to that county under the Glenn Steil state revenue

 

sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921, in

 

October and December 2003 and, if the payment is accrued back to

 

the county's 2003 fiscal year, February 2004.

 

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

 

payment in October 2004 as provided in a bill making appropriations

 

to the department of treasury for the 2004-05 fiscal year shall pay

 

the amount of that payment to the state treasurer from the revenue

 

sharing reserve fund. A county that does not make the payment

 

required under this subsection shall not make any expenditures from

 

the fund provided under subsection (13).

 

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

 

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

 

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

 

that county under the Glenn Steil state revenue sharing act of

 

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

 


ending September 30, 2004, adjusted annually by the inflation rate,

 

without regard to any executive orders issued after May 17, 2004.

 

As used in this subsection, "inflation rate" means that term as

 

defined in section 34d.