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.