HOUSE BILL No. 5015

 

August 13, 2003, Introduced by Reps. Farrah, Newell, Kooiman, Palmer, Garfield, Hummel, Sheen, Milosch, Hoogendyk, Ward, Condino, O'Neil, Huizenga, Hune and Richardville and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1986 PA 196, entitled                                             

                                                                                

    "Public transportation authority act,"                                      

                                                                                

    by amending section 18 (MCL 124.468).                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 18.  (1) A public authority formed under this act may                  

                                                                                

2   levy a tax on all of the taxable property within the limits of              

                                                                                

3   the public authority for public transportation purposes as                  

                                                                                

4   authorized by this act.                                                     

                                                                                

5       (2) The tax authorized in subsection (1) shall not exceed                   

                                                                                

6   5 mills of the state equalized valuation on each dollar of                  

                                                                                

7   assessed valuation of taxable property within the limits of the             

                                                                                

8   applicable public authority.                                                

                                                                                

9       (3) The tax authorized under subsection (1) shall not be                    

                                                                                

10  levied except upon the approval of a majority of the registered             

                                                                                

11  electors residing in the public authority affected and qualified            

                                                                                


                                                                                

1   to vote and voting on the tax at a general or special election.             

                                                                                

2   The election may be called by resolution of the board of the                

                                                                                

3   public authority.  The recording officer of the public authority            

                                                                                

4   shall file a copy of the resolution of the board calling the                

                                                                                

5   election with the clerk of each affected county, city, or                   

                                                                                

6   township not less than 60 days before the date of the election.             

                                                                                

7   The resolution calling the election shall contain a statement of            

                                                                                

8   the proposition to be submitted to the electors.  Each county,              

                                                                                

9   city, and township clerk and all other county, city, and township           

                                                                                

10  officials shall undertake those steps to properly submit the                

                                                                                

11  proposition to the electors of the county, city, and township at            

                                                                                

12  the election specified in the resolutions of the public                     

                                                                                

13  authority.  The election shall be conducted and canvassed in                

                                                                                

14  accordance with the Michigan election law,  Act No. 116 of the              

                                                                                

15  Public Acts of 1954, being sections 168.1 to 168.992 of the                 

                                                                                

16  Michigan Compiled Laws  1954 PA 116, MCL 168.1 to 168.992, except           

                                                                                

17  that if the public authority is located in more than 1 county,              

                                                                                

18  the election shall be canvassed by the state board of                       

                                                                                

19  canvassers.  The results of the election shall be certified to              

                                                                                

20  the board of the public authority promptly after the date of the            

                                                                                

21  election.  Not more than 1 election may be held in a public                 

                                                                                

22  authority in a calendar year for approval of the tax authorized             

                                                                                

23  under subsection (1).  If the election is a special election, the           

                                                                                

24  public authority in which the election is held shall pay its                

                                                                                

25  share of the costs of the election.                                         

                                                                                

26      (4) The taxes authorized by this section may be levied at a                 

                                                                                

27  rate and for a period of not more than 5 years as determined by             


                                                                                

1   the public authority in the resolution calling the election and             

                                                                                

2   as  shall be  set forth in the proposition submitted to the                 

                                                                                

3   electors.                                                                   

                                                                                

4       (5) The tax rate authorized by this section shall be levied                 

                                                                                

5   and collected as are all ad valorem property taxes in  the  this            

                                                                                

6   state and the recording officer of the public authority shall at            

                                                                                

7   the appropriate times certify to the proper tax assessing or                

                                                                                

8   collecting officers of each tax collecting county, city, and                

                                                                                

9   township the amount of taxes to be levied and collected each year           

                                                                                

10  by each county, city, and township.  Consistent with the                    

                                                                                

11  provisions of subsection (6), the board of the public authority             

                                                                                

12  shall determine on which tax roll, if there  be  is more than 1,            

                                                                                

13  of each county, city, or township that the taxes authorized by              

                                                                                

14  this section shall be collected.  Each tax assessing and                    

                                                                                

15  collecting officer and each county treasurer shall levy and                 

                                                                                

16  collect the taxes certified by the public authority and pay those           

                                                                                

17  taxes to the public authority  by the time  as provided in                  

                                                                                

18  section 43 of the general property tax act,  Act No. 206 of the             

                                                                                

19  Public Acts of 1893, being section 211.43 of the Michigan                   

                                                                                

20  Compiled Laws  1893 PA 206, MCL 211.43.  The tax rate authorized            

                                                                                

21  by this section may be first levied by the public authority as a            

                                                                                

22  part of the first tax roll of the appropriate counties, cities,             

                                                                                

23  and townships occurring after the election described in                     

                                                                                

24  subsection (3).   The  Before January 1, 2005, the tax may be               

                                                                                

25  levied and collected on the July or December tax roll  next                 

                                                                                

26  following the date of election, if the tax is certified to the              

                                                                                

27  proper tax assessing officials not later than May 15 or                     


                                                                                

1   September 15, respectively, of the year in which the election is            

                                                                                

2   held.  After December 31, 2004, the tax may be levied and                   

                                                                                

3   collected on the July tax roll following the date of election, if           

                                                                                

4   the tax is certified to the property tax assessing officials not            

                                                                                

5   later than May 15 of the year in which the election is held.                

                                                                                

6       (6)  A  Before January 1, 2005, a public authority  which                   

                                                                                

7   that is authorized to impose a July property tax levy and  if it            

                                                                                

8   that determines to do so,  it  shall negotiate agreements with              

                                                                                

9   the appropriate cities and townships for the collection of that             

                                                                                

10  levy.  If a city or township and the public authority fail to               

                                                                                

11  reach an agreement for the collection by the city or township of            

                                                                                

12  the July property tax levy of the public authority, the public              

                                                                                

13  authority then may negotiate, until April 1, a proposed agreement           

                                                                                

14  with the county treasurer to collect its July property tax levy             

                                                                                

15  against property located in that city or township.  If the county           

                                                                                

16  treasurer and the public authority fail to reach an agreement for           

                                                                                

17  the collection by the county of the July property tax levy of the           

                                                                                

18  public authority, the July property tax levy shall be collected             

                                                                                

19  with the December property tax levy.  Any agreement negotiated              

                                                                                

20  under this subsection shall guarantee the collecting unit its               

                                                                                

21  reasonable expenses.  The provisions of this subsection shall not           

                                                                                

22  apply to a city or township  which  that is levying a July                  

                                                                                

23  property tax.                                                               

                                                                                

24      (7) If, pursuant to subsection (6), the public authority has                

                                                                                

25  reached a proposed agreement with a county treasurer on the                 

                                                                                

26  collection of its July property tax levy against property located           

                                                                                

27  in a city or township with which an agreement to collect this               


                                                                                

1   levy could not be made pursuant to subsection (6), the public               

                                                                                

2   authority shall notify by April 15 that city or township of the             

                                                                                

3   terms of that fact and the city or township shall have 15 days in           

                                                                                

4   which to exercise an option to collect the public authority's               

                                                                                

5   July property tax levy.                                                     

                                                                                

6       (8) Collection of all or part of a public authority's                       

                                                                                

7   property tax levy by a treasurer pursuant to subsection (6) or              

                                                                                

8   (7) shall comply with all of the following:                                 

                                                                                

9       (a) Collection shall be either 1/2 or the total of the                      

                                                                                

10  property tax levy against the properties, as specified for that             

                                                                                

11  year in the resolution of the public authority.                             

                                                                                

12      (b) The amount the public authority has agreed to pay as                    

                                                                                

13  reasonable collection expenses shall be stated in writing and               

                                                                                

14  reported to the state treasurer.                                            

                                                                                

15      (c) Taxes authorized to be collected shall become a lien                    

                                                                                

16  against the property on which assessed, and due from the owner of           

                                                                                

17  that property, on July 1.                                                   

                                                                                

18      (d) Taxes shall be collected on or before September 14 and                  

                                                                                

19  all taxes and interest imposed pursuant to subdivision (f) unpaid           

                                                                                

20  before March 1 shall be returned as delinquent on March 1.  Taxes           

                                                                                

21  delinquent under this subdivision shall be collected pursuant to            

                                                                                

22  Act No. 206 of the Public Acts of 1893  the general property tax           

                                                                                

23  act, 1893 PA 206, MCL 211.1 to 211.157.                                     

                                                                                

24      (e) Interest shall be added to taxes collected after                        

                                                                                

25  September 14 at that rate imposed by section 59 of  Act No. 206             

                                                                                

26  of the Public Acts of 1893, being section 211.59 of the Michigan            

                                                                                

27  Compiled Laws  the general property tax act, 1893 PA 206, MCL               


                                                                                

1   211.59, on delinquent property tax levies which became a lien in            

                                                                                

2   the same year.                                                              

                                                                                

3       (f) All or a portion of fees or charges, or both, authorized                

                                                                                

4   under section 44 of  Act No. 206 of the Public Acts of 1893,                

                                                                                

5   being section 211.44 of the Michigan Compiled Laws  the general             

                                                                                

6   property tax act, 1893 PA 206, MCL 211.44, may be imposed on                

                                                                                

7   taxes paid before March 1 and shall be retained by the treasurer            

                                                                                

8   actually performing the collection of the July property tax levy            

                                                                                

9   of the public authority, regardless of whether all or part of               

                                                                                

10  these fees or charges, or both, have been waived by the township            

                                                                                

11  or city.                                                                    

                                                                                

12      (9) An agreement pursuant to subsection (6) for the                         

                                                                                

13  collection of a July property tax levy of a public authority with           

                                                                                

14  a county treasurer shall include a schedule for delivering                  

                                                                                

15  collections to the public authority.                                        

                                                                                

16      (10) To the extent applicable and consistent with the                       

                                                                                

17  requirements of this section, the provisions of  Act No. 206 of             

                                                                                

18  the Public Acts of 1893  the general property tax act, 1893 PA              

                                                                                

19  206, MCL 211.1 to 211.157, shall apply to proceedings in relation           

                                                                                

20  to the assessment, spreading, and collection of taxes pursuant to           

                                                                                

21  this section.  Additionally, in relation to the assessment,                 

                                                                                

22  spreading, and collection of taxes pursuant to this section, the            

                                                                                

23  county treasurer shall have powers and duties similar to those              

                                                                                

24  prescribed by  Act No. 206 of the Public Acts of 1893  the                  

                                                                                

25  general property tax act, 1893 PA 206, MCL 211.1 to 211.157, for            

                                                                                

26  township supervisors, township clerks, and township treasurers.             

                                                                                

27  However, this section shall not be considered to transfer any               


                                                                                

1   authority over the assessment of property.                                  

                                                                                

2       (11) If a county treasurer collects the July property tax                   

                                                                                

3   levy of the public authority pursuant to subsection (6), the                

                                                                                

4   township or city shall deliver by June 1 a certified copy of the            

                                                                                

5   assessment roll containing state equalized valuations for each              

                                                                                

6   parcel of taxable property in the township or city to the                   

                                                                                

7   treasurer collecting the July property tax levy of the public               

                                                                                

8   authority.  The county treasurer receiving this certified copy of           

                                                                                

9   the assessment roll shall remit the necessary cost incident to              

                                                                                

10  the reproduction of the assessment roll to the township or city.            

                                                                                

11      (12) A county treasurer collecting taxes pursuant to this                   

                                                                                

12  section shall be bonded for tax collection in the same amount and           

                                                                                

13  in the same manner as a township treasurer would be for                     

                                                                                

14  undertaking the duties prescribed by this section.                          

                                                                                

15      (13) An agreement for the collection of a July property tax                 

                                                                                

16  levy between a public authority and a county may cover July                 

                                                                                

17  collections for 2 years.  If an agreement covers July collections           

                                                                                

18  for 2 years, the notice required by subsection (7) and the option           

                                                                                

19  to reconsider provided by subsection (7) shall not apply for July           

                                                                                

20  collections in the second year.                                             

                                                                                

21      (14) If collections are made pursuant to this section by a                  

                                                                                

22  county treasurer, all payments from a public authority for                  

                                                                                

23  collecting its July property tax levy and all revenues generated            

                                                                                

24  from collection fees shall be deposited, when received or                   

                                                                                

25  collected, in a fund, which  fund  shall be used by the county              

                                                                                

26  treasurer to pay for the cost of collecting the public                      

                                                                                

27  authority's July property tax levy.                                         


                                                                                

1       Enacting section 1.  This amendatory act does not take                      

                                                                                

2   effect unless Senate Bill No. _____ or House Bill No. 5010                  

                                                                                

3   (request no. 02479'03) of the 92nd Legislature is enacted into              

                                                                                

4   law.