HOUSE BILL No. 4286

 

February 20, 2007, Introduced by Reps. Cheeks, Young, Accavitti, Farrah, Robert Jones, Sak, Kathleen Law, Leland, Gonzales, Johnson and Jackson and referred to the Committee on Intergovernmental, Urban and Regional Affairs.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 1a, 59, 78b, 78c, 78f, 78g, 78i, and 78k (MCL

 

211.1a, 211.59, 211.78b, 211.78c, 211.78f, 211.78g, 211.78i, and

 

211.78k), section 59 as amended by 2006 PA 626, sections 78b, 78c,

 

78f, and 78g as amended by 2003 PA 263, and sections 78i and 78k as

 

amended by 2006 PA 611.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1a. (1) This act shall be known and may be cited as "The

 

"the general property tax act".

 

     (2) As used in this act, "qualified county" means a county in

 

which is located a municipality with a population of 750,000 or

 

more as determined by the most recent federal decennial census.

 


     Sec. 59. (1) A person may pay the taxes, any 1 of the taxes, a

 

portion of the taxes specified by resolution of the county board of

 

commissioners, or if a specification is not made by a resolution of

 

the county board of commissioners, a portion of the taxes approved

 

by the county treasurer on a parcel or description of property

 

returned as delinquent, or on an undivided share of a parcel or

 

description of property returned as delinquent. For taxes levied on

 

real property before January 1, 1999 and for taxes levied on

 

personal property, the amount paid under this subsection shall

 

include interest computed from the March 1 after the taxes were

 

assessed at the rate of 1% per month or fraction of a month, except

 

as provided in section 89, and 4% of the delinquent taxes as a

 

county property tax administration fee that shall be a minimum of

 

$1.00 per payment of delinquent taxes, except as provided in

 

section 89. Payment under this subsection shall be made to the

 

county treasurer of the county in which the property is forfeited

 

to a county treasurer pursuant to section 78g. In a qualified

 

county, payment under this subsection shall be credited against the

 

most delinquent taxes. The county treasurer and the treasurer for

 

the local tax collecting unit shall allocate and distribute the

 

taxes and interest paid proportionately among the county or local

 

tax collecting unit funds and the property tax administration fee

 

returned as delinquent under section 44(6) to the treasurer of the

 

local tax collecting unit who transmitted the taxes returned as

 

delinquent. For taxes levied before January 1, 1999, on all

 

descriptions of property with unpaid taxes on the October 1 before

 

the time prescribed for the sale of a tax lien on the property, an

 


additional $10.00 shall be charged for expenses, which shall be a

 

lien on the property. If collected, before January 1, 2006, $5.00

 

of this expense charge shall be credited to a restricted revenue

 

fund of this state, to be known as the delinquent property tax

 

administration fund, and after December 31, 2005 $5.00 of this

 

expense charge shall be deposited in the land reutilization fund

 

created in section 78n, to reimburse this state for the cost of

 

publishing the lists of property and other expenses, and $5.00

 

shall belong to the general fund of the county to reimburse the

 

county for the expense incurred in preparing the list of delinquent

 

property for sale or forfeiture.

 

     (2) For taxes levied before January 1, 1999, the property tax

 

administration fee paid to the county treasurer shall be credited

 

to the general fund of the county and the property tax

 

administration fee paid to the state treasurer shall be credited to

 

the land reutilization fund created in section 78n. Amounts

 

credited to the general fund of the county shall be used only for

 

the purposes specified in subsection (6).

 

     (3) For taxes levied before January 1, 1999, and for taxes

 

levied after December 31, 1998, a county board of commissioners, by

 

resolution, may provide all of the following for taxes paid before

 

May 1 in the first year of delinquency for the homestead property

 

of a senior citizen, paraplegic, hemiplegic, quadriplegic, eligible

 

serviceman, eligible veteran, eligible widow, totally and

 

permanently disabled person, or blind person, as those persons are

 

defined in chapter 9 of the income tax act of 1967, 1967 PA 281,

 

MCL 206.501 to 206.532, if a claim is made before February 15 for

 


the credit provided by chapter 9 of the income tax act of 1967,

 

1967 PA 281, MCL 206.501 to 206.532, if that claimant presents a

 

copy of the form filed for that credit to the county treasurer, and

 

if that claimant has not received the credit before March 1:

 

     (a) Any interest, fee, or penalty in excess of the interest,

 

fee, or penalty that would have been added if the tax had been paid

 

before February 15 is waived.

 

     (b) Interest paid under subsection (1) or section 89(1)(a) is

 

waived unless the interest is pledged to the repayment of

 

delinquent tax revolving fund notes or payable to the county

 

delinquent tax revolving fund, in which case the interest shall be

 

refunded from the general fund of the county.

 

     (c) The county property tax administration fee is waived.

 

     (4) The treasurer of the local tax collecting unit shall

 

indicate on the delinquent tax roll if a 1% property tax

 

administration fee was added to taxes collected before February 15.

 

     (5) The fees authorized and collected under this section and

 

credited to the delinquent property tax administration fund shall

 

be used by the department of treasury to pay expenses incurred in

 

the administration of this act.

 

     (6) The county property tax administration fee shall be used

 

by the county to offset the costs incurred in and ancillary to

 

collecting delinquent property taxes and for purposes authorized by

 

sections 87b and 87d.

 

     Sec. 78b. Except as otherwise provided in section 79 for

 

certified abandoned property, on the June 1 immediately succeeding

 

the date that unpaid taxes are returned to the county treasurer for

 


forfeiture, foreclosure, and sale under section 60a(1) or (2) or

 

returned to the county treasurer as delinquent under section 78a,

 

the county treasurer shall send notice of all the following by

 

first-class mail, address correction requested or, in a qualified

 

county, by certified mail, return receipt requested, to the person

 

to whom a tax bill for property returned for delinquent taxes was

 

last sent or to the person identified as the owner of property

 

returned for delinquent taxes, to a person entitled to notice of

 

the return of delinquent taxes under section 78a(4), and to a

 

person to whom a tax certificate for property returned for

 

delinquent taxes was issued pursuant to former section 71, as shown

 

on the current records of the county treasurer:

 

     (a) The date property on which unpaid taxes were returned as

 

delinquent will be forfeited to the county treasurer for those

 

unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 

and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person or persons to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A statement that unless those unpaid delinquent taxes,

 

interest, penalties, and fees are paid on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k, absolute title

 


to the property shall vest in the foreclosing governmental unit.

 

     (g) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k.

 

     Sec. 78c. Except as otherwise provided in section 79 for

 

certified abandoned property, on the September 1 immediately

 

succeeding the date that unpaid taxes are returned to the county

 

treasurer for forfeiture, foreclosure, and sale under section

 

60a(1) or (2) or returned to the county treasurer as delinquent

 

under section 78a, the county treasurer shall send notice of all

 

the following by first-class mail, address correction requested or,

 

in a qualified county, by certified mail, return receipt requested,

 

to the person to whom a tax bill for property returned for

 

delinquent taxes was last sent or to the person identified as the

 

owner of property returned for delinquent taxes, to a person

 

entitled to notice of the return of delinquent taxes under section

 

78a(4), and to a person to whom a tax certificate for property

 

returned for delinquent taxes was issued pursuant to former section

 

71, as shown on the current records of the county treasurer:

 

     (a) The date property on which unpaid taxes were returned as

 

delinquent will be forfeited to the county treasurer for those

 

unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 

and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 


the street address of the property, if available.

 

     (d) The person or persons to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A schedule of the additional fees that will accrue on the

 

immediately succeeding October 1 pursuant to section 78d if the

 

unpaid delinquent taxes, interest, penalties, and fees due on the

 

property are not paid.

 

     (g) A statement that unless those unpaid delinquent taxes,

 

interest, penalties, and fees are paid on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k, absolute title

 

to the property shall vest in the foreclosing governmental unit.

 

     (h) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k.

 

     Sec. 78f. (1) Except as otherwise provided in section 79 for

 

certified abandoned property, not later than the February 1

 

immediately succeeding the date that unpaid taxes were returned to

 

the county treasurer for forfeiture, foreclosure, and sale under

 

section 60a(1) or (2) or returned to the county treasurer as

 

delinquent under section 78a, the county treasurer shall send a

 

notice by certified mail, return receipt requested, to the person

 

to whom a tax bill for property returned for delinquent taxes was

 

last sent and, if different, to the person identified as the owner

 

of property returned for delinquent taxes as shown on the current

 


records of the county treasurer and to those persons identified

 

under section 78e(2). The notice required under this subsection

 

shall include all of the following:

 

     (a) The date property on which those unpaid taxes were

 

returned as delinquent will be forfeited to the county treasurer

 

for the unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 

and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A schedule of the additional interest, penalties, and fees

 

that will accrue on the immediately succeeding March 1 pursuant to

 

section 78g if those unpaid delinquent taxes, interest, penalties,

 

and fees due on the property are not paid.

 

     (g) A statement that unless those unpaid delinquent taxes,

 

interest, penalties, and fees are paid on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k, absolute title

 

to the property shall vest in the foreclosing governmental unit.

 

     (h) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k.

 


     (2) The notice required under subsection (1) shall also be

 

mailed to the property by first-class mail or, in a qualified

 

county, by certified mail, return receipt requested, addressed to

 

"occupant", if the notice was not sent to the occupant of the

 

property pursuant to subsection (1).

 

     (3) A county treasurer may insert 1 or more additional notices

 

in a newspaper published and circulated in the county in which the

 

property is located, if there is one. If no newspaper is published

 

in that county, publication may be made in a newspaper published

 

and circulated in an adjoining county. In a qualified county, the

 

county treasurer shall insert 1 or more additional notices in the

 

newspaper with the largest circulation published and circulated in

 

the qualified county in which the property is located, if there is

 

one. If no newspaper is published in a qualified county,

 

publication shall be in the newspaper with the largest circulation

 

published and circulated in a county adjoining the qualified

 

county.

 

     (4) The county treasurer may publish the street address, if

 

available, of property subject to forfeiture under section 78g on

 

the immediately succeeding March 1 for delinquent taxes or the

 

street address, if available, of property subject to forfeiture

 

under section 78g on the immediately succeeding March 1 for

 

delinquent taxes and the name of the person to whom a tax bill for

 

property returned for delinquent taxes was last sent and, if

 

different, the name of the person identified as the owner of the

 

property returned for delinquent taxes as shown on the current

 

records of the county treasurer in a newspaper published and

 


circulated in the county in which the property is located, if there

 

is one. If no newspaper is published in that county, publication

 

may be made in a newspaper published and circulated in an adjoining

 

county. In a qualified county, the county treasurer shall publish

 

the street address, if available, of property subject to forfeiture

 

under section 78g on the immediately succeeding March 1 for

 

delinquent taxes or the street address, if available, of property

 

subject to forfeiture under section 78g on the immediately

 

succeeding March 1 for delinquent taxes and the name of the person

 

to whom a tax bill for property returned for delinquent taxes was

 

last sent and, if different, the name of the person identified as

 

the owner of the property returned for delinquent taxes as shown on

 

the current records of the county treasurer in the newspaper with

 

the largest circulation published and circulated in the county in

 

which the property is located, if there is one. If no newspaper is

 

published in the qualified county, publication shall be made in the

 

newspaper with the largest circulation published and circulated in

 

a county adjoining the qualified county.

 

     Sec. 78g. (1) Except as otherwise provided in this subsection,

 

on March 1 in each tax year, certified abandoned property and

 

property that is delinquent for taxes, interest, penalties, and

 

fees for the immediately preceding 12 months or more is forfeited

 

to the county treasurer for the total amount of those unpaid

 

delinquent taxes, interest, penalties, and fees. If property is

 

forfeited to a county treasurer under this subsection, the

 

foreclosing governmental unit does not have a right to possession

 

of the property until the April 1 immediately succeeding the entry

 


of a judgment foreclosing the property under section 78k or in a

 

contested case until 22 days after the entry of a judgment

 

foreclosing the property under section 78k. If property is

 

forfeited to a county treasurer under this subsection, the county

 

treasurer shall add a $175.00 fee to each parcel of property for

 

which those delinquent taxes, interest, penalties, and fees remain

 

unpaid. A county treasurer shall withhold a parcel of property from

 

forfeiture for any reason determined by the state tax commission.

 

The procedure for withholding a parcel of property from forfeiture

 

under this subsection shall be determined by the state tax

 

commission.

 

     (2) Not more than 45 days after property is forfeited under

 

subsection (1), the county treasurer shall record with the county

 

register of deeds a certificate in a form determined by the

 

department of treasury for each parcel of property forfeited to the

 

county treasurer, specifying that the property has been forfeited

 

to the county treasurer and not redeemed and that absolute title to

 

the property shall vest in the county treasurer on the March 31

 

immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k or in a contested case 21 days after the

 

entry of a judgment foreclosing the property under section 78k. If

 

a certificate of forfeiture is recorded in error, the county

 

treasurer shall record with the county register of deeds a

 

certificate of error in a form prescribed by the department of

 

treasury. A certificate submitted to the county register of deeds

 

for recording under this subsection need not be notarized and may

 

be authenticated by a digital signature of the county treasurer or

 


by other electronic means. If the county has elected under section

 

78 to have this state foreclose property under this act forfeited

 

to the county treasurer under this section, the county treasurer

 

shall immediately transmit to the department of treasury a copy of

 

each certificate recorded under this subsection. The county

 

treasurer shall upon collection transmit to the department of

 

treasury within 30 days the fee added to each parcel under

 

subsection (1), which may be paid from the county's delinquent tax

 

revolving fund and shall be deposited in the land reutilization

 

fund created under section 78n.

 

     (3) Property forfeited to the county treasurer under

 

subsection (1) may be redeemed at any time on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k or in a contested case within 21 days of

 

the entry of a judgment foreclosing the property under section 78k,

 

upon payment to the county treasurer of all of the following:

 

     (a) The total amount of unpaid delinquent taxes, interest,

 

penalties, and fees for which the property was forfeited.

 

     (b) In addition to the interest calculated under sections

 

60a(1) or (2) and section 78a(3), additional interest computed at a

 

noncompounded rate of 1/2% per month or fraction of a month on the

 

taxes that were originally returned as delinquent, computed from

 

the March 1 preceding the forfeiture.

 

     (c) All recording fees and all fees for service of process or

 

notice.

 

     (4) If property is redeemed by a person with a legal interest

 

as provided under subsection (3), any unpaid taxes not returned as

 


delinquent to the county treasurer under section 78a are not

 

extinguished.

 

     (5) If property is redeemed by a person with a legal interest

 

as provided under subsection (3), the person redeeming does not

 

acquire a title or interest in the property greater than that

 

person would have had if the property had not been forfeited to the

 

county treasurer, but the person redeeming, other than the owner,

 

is entitled to a lien for the amount paid to redeem the property in

 

addition to any other lien or interest the person may have, which

 

shall be recorded within 30 days with the register of deeds by the

 

person entitled to the lien. The lien acquired shall have the same

 

priority as the existing lien, title, or interest.

 

     (6) If property is redeemed as provided under subsection (3),

 

the county treasurer shall issue a redemption certificate in

 

quadruplicate in a form prescribed by the department of treasury.

 

One of the quadruplicate certificates shall be delivered to the

 

person making the redemption payment, 1 shall be filed in the

 

office of the county treasurer, 1 shall be recorded in the office

 

of the county register of deeds, and 1 shall be immediately

 

transmitted to the department of treasury if this state is the

 

foreclosing governmental unit. The county treasurer shall also make

 

a note of the redemption certificate in the tax record kept in his

 

or her office, with the name of the person making the final

 

redemption payment, the date of the payment, and the amount paid.

 

If the county treasurer accepts partial redemption payments, the

 

county treasurer shall include in the tax record kept in his or her

 

office the name of the person or persons making each partial

 


redemption payment, the date of each partial redemption payment,

 

the amount of each partial redemption payment, and the total amount

 

of all redemption payments. A certificate and the entry of the

 

certificate in the tax record by the county treasurer is prima

 

facie evidence of a redemption payment in the courts of this state.

 

A certificate submitted to the county register of deeds for

 

recording under this subsection need not be notarized and may be

 

authenticated by a digital signature of the county treasurer or by

 

other electronic means. If a redemption certificate is recorded in

 

error, the county treasurer shall record with the county register

 

of deeds a certificate of error in a form prescribed by the

 

department of treasury. A copy of a certificate of error recorded

 

under this section shall be immediately transmitted to the

 

department of treasury if this state is the foreclosing

 

governmental unit. In a qualified county, payment under this

 

subsection shall be credited against the most delinquent taxes.

 

     (7) If a foreclosing governmental unit has reason to believe

 

that a property forfeited under this section may be the site of

 

environmental contamination, the foreclosing governmental unit

 

shall provide the department of environmental quality with any

 

information in the possession of the foreclosing governmental unit

 

that suggests the property may be the site of environmental

 

contamination.

 

     Sec. 78i. (1) Not later than May 1 immediately succeeding the

 

forfeiture of property to the county treasurer under section 78g,

 

the foreclosing governmental unit shall initiate a search of

 

records identified in subsection (6) to identify the owners of a

 


property interest in the property who are entitled to notice under

 

this section of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k. The foreclosing governmental

 

unit may enter into a contract with 1 or more authorized

 

representatives to perform a title search or may request from 1 or

 

more authorized representatives another title search product to

 

identify the owners of a property interest in the property as

 

required under this subsection or to perform other functions

 

required for the collection of delinquent taxes under this act.

 

     (2) After conducting the search of records under subsection

 

(1), the foreclosing governmental unit or its authorized

 

representative shall determine the address reasonably calculated to

 

apprise those owners of a property interest of the show cause

 

hearing under section 78j and the foreclosure hearing under section

 

78k and shall send notice of the show cause hearing under section

 

78j and the foreclosure hearing under section 78k to those owners,

 

and to a person entitled to notice of the return of delinquent

 

taxes under section 78a(4), by certified mail, return receipt

 

requested, not less than 30 days before the show cause hearing. If

 

after conducting the search of records under subsection (1) the

 

foreclosing governmental unit is unable to determine an address

 

reasonably calculated to inform a person with an interest in a

 

forfeited property, or if the foreclosing governmental unit

 

discovers a deficiency in notice under subsection (4), the

 

following shall be considered reasonable steps by the foreclosing

 

governmental unit or its authorized representative to ascertain the

 

address of a person entitled to notice under this section or to

 


ascertain an address necessary to correct the deficiency in notice

 

under subsection (4):

 

     (a) For an individual, a search of the records of the probate

 

court for the county in which the property is located.

 

     (b) For an individual, a search of the qualified voter file

 

established under section 509o of the Michigan election law, 1954

 

PA 116, MCL 168.509o, which is authorized by this subdivision.

 

     (c) For a partnership, a search of partnership records filed

 

with the county clerk.

 

     (d) For a business entity other than a partnership, a search

 

of business entity records filed with the department of labor and

 

economic growth.

 

     (3) The foreclosing governmental unit or its authorized

 

representative or authorized agent shall make a personal visit to

 

each parcel of property forfeited to the county treasurer under

 

section 78g to ascertain whether or not the property is occupied.

 

If the property appears to be occupied, the foreclosing

 

governmental unit or its authorized representative shall do all of

 

the following:

 

     (a) Attempt to personally serve upon a person occupying the

 

property notice of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k.

 

     (b) If a person occupying the property is personally served,

 

orally inform the occupant that the property will be foreclosed and

 

the occupants will be required to vacate unless all forfeited

 

unpaid delinquent taxes, interest, penalties, and fees are paid, of

 

the time within which all forfeited unpaid delinquent taxes,

 


interest, penalties, and fees must be paid, and of agencies or

 

other resources that may be available to assist the owner to avoid

 

loss of the property.

 

     (c) If the occupant appears to lack the ability to understand

 

the advice given, notify the department of human services or

 

provide the occupant with the names and telephone numbers of the

 

agencies that may be able to assist the occupant.

 

     (d) If the foreclosing governmental unit or its authorized

 

representative is not able to personally meet with the occupant or,

 

for property located in a qualified county, in all instances, the

 

foreclosing governmental unit or its authorized representative

 

shall place post and affix the notice in a conspicuous manner on

 

the property and shall also place post and affix in a conspicuous

 

manner on the property a notice that explains, in plain English,

 

that the property will be foreclosed unless forfeited unpaid

 

delinquent taxes, interest, penalties, and fees are paid, the time

 

within which forfeited unpaid delinquent taxes, interest,

 

penalties, and fees must be paid, and the names, addresses, and

 

telephone numbers of agencies or other resources that may be

 

available to assist the occupant to avoid loss of the property. In

 

a qualified county, the notice shall be on 11-inch by 15-inch legal

 

size, bright, iridescent paper and printed in 24-point bold

 

lettering. The foreclosing governmental unit shall photograph each

 

notice posted and affixed on the property. If this state is the

 

foreclosing governmental unit within a county, the department of

 

treasury shall perform the personal visit to each parcel of

 

property under this subsection on behalf of this state.

 


     (4) If the foreclosing governmental unit or its authorized

 

representative discovers any deficiency in the provision of notice,

 

the foreclosing governmental unit shall take reasonable steps in

 

good faith to correct that deficiency not later than 30 days before

 

the show cause hearing under section 78j, if possible. If it is

 

determined that within a qualified county there is a deficiency in

 

the provision of notice to 20% or more of the owners of a property

 

interest who are entitled to notice under this section, an owner of

 

a property interest who is entitled to notice under this section,

 

his or her authorized representative, or his or her attorney may

 

seek a writ of mandamus under chapter 44 of the revised judicature

 

act of 1961, 1961 PA 236, MCL 600.4401 to 600.4431, to compel the

 

foreclosing governmental unit or its authorized representative to

 

correct that deficiency in notice within the qualified county.

 

     (5) If the foreclosing governmental unit or its authorized

 

representative is unable to ascertain the address reasonably

 

calculated to apprise the owners of a property interest entitled to

 

notice under this section, or is unable to notify the owner of a

 

property interest under subsection (2), the notice shall be made by

 

publication. A notice shall be published for 3 successive weeks,

 

once each week, in a newspaper published and circulated in the

 

county in which the property is located, if there is one. If no

 

paper is published in that county, publication shall be made in a

 

newspaper published and circulated in an adjoining county. This

 

publication shall be instead of notice under subsection (2). In a

 

qualified county, in addition to a personal visit and service by

 

certified mail, return receipt requested, the notice shall also be

 


made by publication. A notice shall be published for 3 successive

 

weeks, once each week, in the newspaper with the largest

 

circulation published and circulated in the qualified county in

 

which the property is located, if there is one. If no paper is

 

published in the qualified county in which the property is located,

 

publication shall be made in the newspaper with the largest

 

circulation published and circulated in a county adjoining the

 

qualified county. This publication shall be in addition to the

 

notice under subsection (2).

 

     (6) The owner of a property interest is entitled to notice

 

under this section of the show cause hearing under section 78j and

 

the foreclosure hearing under section 78k if that owner's interest

 

was identifiable by reference to any of the following sources

 

before the date that the county treasurer records the certificate

 

required under section 78g(2):

 

     (a) Land title records in the office of the county register of

 

deeds.

 

     (b) Tax records in the office of the county treasurer.

 

     (c) Tax records in the office of the local assessor.

 

     (d) Tax records in the office of the local treasurer.

 

     (7) The notice required under subsections (2) and (3) shall

 

include all of the following:

 

     (a) The date on which the property was forfeited to the county

 

treasurer.

 

     (b) A statement that the person notified may lose his or her

 

interest in the property as a result of the foreclosure proceeding

 

under section 78k.

 


     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person to whom the notice is addressed.

 

     (e) The total taxes, interest, penalties, and fees due on the

 

property.

 

     (f) The date and time of the show cause hearing under section

 

78j.

 

     (g) The date and time of the hearing on the petition for

 

foreclosure under section 78k, and a statement that unless the

 

forfeited unpaid delinquent taxes, interest, penalties, and fees

 

are paid on or before the March 31 immediately succeeding the entry

 

of a judgment foreclosing the property under section 78k, or in a

 

contested case within 21 days of the entry of a judgment

 

foreclosing the property under section 78k, the title to the

 

property shall vest absolutely in the foreclosing governmental unit

 

and that all existing interests in oil or gas in that property

 

shall be extinguished except the following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 

of the register of deeds in the county in which the property is

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (h) An explanation of the person's rights of redemption and

 

notice that the rights of redemption will expire on the March 31

 


immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k, or in a contested case 21 days after

 

the entry of a judgment foreclosing the property under section 78k.

 

     (8) The published notice required under subsection (5) shall

 

include all of the following:

 

     (a) A legal description or parcel number of each property.

 

     (b) The street address of each property, if available.

 

     (c) The name of any person or entity entitled to notice under

 

this section who has not been notified under subsection (2) or (3)

 

or, in a qualified county, the name of any person or entity

 

entitled to notice under this section.

 

     (d) The date and time of the show cause hearing under section

 

78j.

 

     (e) The date and time of the hearing on the petition for

 

foreclosure under section 78k.

 

     (f) A statement that unless all forfeited unpaid delinquent

 

taxes, interest, penalties, and fees are paid on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under section 78k, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under

 

section 78k, the title to the property shall vest absolutely in the

 

foreclosing governmental unit and that all existing interests in

 

oil or gas in that property shall be extinguished except the

 

following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 


of the register of deeds in the county in which the property is

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (g) A statement that a person with an interest in the property

 

may lose his or her interest in the property as a result of the

 

foreclosure proceeding under section 78k and that all existing

 

interests in oil or gas in that property shall be extinguished

 

except the following:

 

     (i) The interests of a lessee or an assignee of an interest of

 

a lessee under an oil or gas lease in effect as to that property or

 

any part of that property if the lease was recorded in the office

 

of the register of deeds in the county in which the property is

 

located before the date of filing the petition for foreclosure

 

under section 78h.

 

     (ii) Interests preserved as provided in section 1(3) of 1963 PA

 

42, MCL 554.291.

 

     (9) The owner of a property interest who has been properly

 

served with a notice of the show cause hearing under section 78j

 

and the foreclosure hearing under section 78k and who failed to

 

redeem the property as provided under this act shall not assert any

 

of the following:

 

     (a) That notice was insufficient or inadequate on the grounds

 

that some other owner of a property interest was not also served.

 

     (b) That the redemption period provided under this act was

 

extended in any way on the grounds that some other owner of a

 


property interest was not also served.

 

     (10) The failure of the foreclosing governmental unit to

 

comply with any provision of this section shall not invalidate any

 

proceeding under this act if the owner of a property interest or a

 

person to whom a tax deed was issued is accorded the minimum due

 

process required under the state constitution of 1963 and the

 

constitution of the United States.

 

     (11) As used in this section, "authorized representative"

 

includes all of the following:

 

     (a) A title insurance company or agent licensed to conduct

 

business in this state.

 

     (b) An attorney licensed to practice law in this state.

 

     (c) A person accredited in land title search procedures by a

 

nationally recognized organization in the field of land title

 

searching.

 

     (d) A person with demonstrated experience searching land title

 

records, as determined by the foreclosing governmental unit.

 

     (12) The provisions of this section relating to notice of the

 

show cause hearing under section 78j and the foreclosure hearing

 

under section 78k are exclusive and exhaustive. Other requirements

 

relating to notice or proof of service under other law, rule, or

 

legal requirement are not applicable to notice and proof of service

 

under this section.

 

     Sec. 78k. (1) If a petition for foreclosure is filed under

 

section 78h, not later than the date of the hearing, the

 

foreclosing governmental unit shall file with the clerk of the

 

circuit court proof of service of the notice of the show cause

 


hearing under section 78j, proof of service of the notice of the

 

foreclosure hearing under this section, and proof of the personal

 

visit to the property and publication under section 78i. In a

 

qualified county, proof of the personal visit to the property shall

 

include a sworn statement attesting to the personal visit and a

 

photograph depicting each notice placed on the property.

 

     (2) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure may contest the validity or

 

correctness of the forfeited unpaid delinquent taxes, interest,

 

penalties, and fees for 1 or more of the following reasons:

 

     (a) No law authorizes the tax.

 

     (b) The person appointed to decide whether a tax shall be

 

levied under a law of this state acted without jurisdiction, or did

 

not impose the tax in question.

 

     (c) The property was exempt from the tax in question, or the

 

tax was not legally levied.

 

     (d) The tax has been paid within the time limited by law for

 

payment or redemption.

 

     (e) The tax was assessed fraudulently.

 

     (f) The description of the property used in the assessment was

 

so indefinite or erroneous that the forfeiture was void.

 

     (3) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure who desires to contest that

 

petition shall file written objections with the clerk of the

 

circuit court and serve those objections on the foreclosing

 

governmental unit prior to the date of the hearing required under

 

this section.

 


     (4) If the court determines that the owner of property subject

 

to foreclosure is a minor heir, is incompetent, is without means of

 

support, or is undergoing a substantial financial hardship, the

 

court may withhold that property from foreclosure for 1 year or may

 

enter an order extending the redemption period as the court

 

determines to be equitable. If the court withholds property from

 

foreclosure under this subsection, a taxing unit's lien for taxes

 

due is not prejudiced and that property shall be included in the

 

immediately succeeding year's tax foreclosure proceeding.

 

     (5) The circuit court shall enter final judgment on a petition

 

for foreclosure filed under section 78h at any time after the

 

hearing under this section but not later than the March 30

 

immediately succeeding the hearing with the judgment effective on

 

the March 31 immediately succeeding the hearing for uncontested

 

cases or 10 days after the conclusion of the hearing for contested

 

cases. All redemption rights to the property expire on the March 31

 

immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case 21 days after

 

the entry of a judgment foreclosing the property under this

 

section. The circuit court's judgment shall specify all of the

 

following:

 

     (a) The legal description and, if known, the street address of

 

the property foreclosed and the forfeited unpaid delinquent taxes,

 

interest, penalties, and fees due on each parcel of property.

 

     (b) That fee simple title to property foreclosed by the

 

judgment will vest absolutely in the foreclosing governmental unit,

 

except as otherwise provided in subdivisions (c) and (e), without

 


any further rights of redemption, if all forfeited delinquent

 

taxes, interest, penalties, and fees are not paid on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under this section, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under this

 

section.

 

     (c) That all liens against the property, including any lien

 

for unpaid taxes or special assessments, except future installments

 

of special assessments and liens recorded by this state or the

 

foreclosing governmental unit pursuant to the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.101 to

 

324.90106, are extinguished, if all forfeited delinquent taxes,

 

interest, penalties, and fees are not paid on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case within 21 days

 

of the entry of a judgment foreclosing the property under this

 

section.

 

     (d) That, except as otherwise provided in subdivisions (c) and

 

(e), the foreclosing governmental unit has good and marketable fee

 

simple title to the property, if all forfeited delinquent taxes,

 

interest, penalties, and fees are not paid on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case within 21 days

 

of the entry of a judgment foreclosing the property under this

 

section.

 

     (e) That all existing recorded and unrecorded interests in

 

that property are extinguished, except a visible or recorded

 


easement or right-of-way, private deed restrictions, interests of a

 

lessee or an assignee of an interest of a lessee under a recorded

 

oil or gas lease, interests in oil or gas in that property that are

 

owned by a person other than the owner of the surface that have

 

been preserved as provided in section 1(3) of 1963 PA 42, MCL

 

554.291, or restrictions or other governmental interests imposed

 

pursuant to the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.101 to 324.90106, if all forfeited delinquent

 

taxes, interest, penalties, and fees are not paid on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under this section, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under this

 

section.

 

     (f) A finding that all persons entitled to notice and an

 

opportunity to be heard have been provided that notice and

 

opportunity. A person shall be deemed to have been provided notice

 

and an opportunity to be heard if the foreclosing governmental unit

 

followed the procedures for provision of notice by mail, for visits

 

to forfeited property, and for publication under section 78i, or if

 

1 or more of the following apply:

 

     (i) The person had constructive notice of the hearing under

 

this section by acquiring an interest in the property after the

 

date the notice of forfeiture is recorded under section 78g.

 

     (ii) The person appeared at the hearing under this section or

 

filed written objections with the clerk of the circuit court under

 

subsection (3) prior to the hearing.

 

     (iii) Prior to the hearing under this section, the person had

 


actual notice of the hearing.

 

     (g) A judgment entered under this section is a final order

 

with respect to the property affected by the judgment and except as

 

provided in subsection (7) shall not be modified, stayed, or held

 

invalid after the March 31 immediately succeeding the entry of a

 

judgment foreclosing the property under this section, or for

 

contested cases 21 days after the entry of a judgment foreclosing

 

the property under this section.

 

     (6) Except as otherwise provided in subsection (5)(c) and (e),

 

fee simple title to property set forth in a petition for

 

foreclosure filed under section 78h on which forfeited delinquent

 

taxes, interest, penalties, and fees are not paid on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under this section, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under this

 

section, shall vest absolutely in the foreclosing governmental

 

unit, and the foreclosing governmental unit shall have absolute

 

title to the property, including all interests in oil or gas in

 

that property except the interests of a lessee or an assignee of an

 

interest of a lessee under an oil or gas lease in effect as to that

 

property or any part of that property if the lease was recorded in

 

the office of the register of deeds in the county in which the

 

property is located before the date of filing the petition for

 

foreclosure under section 78h, and interests preserved as provided

 

in section 1(3) of 1963 PA 42, MCL 554.291. The foreclosing

 

governmental unit's title is not subject to any recorded or

 

unrecorded lien and shall not be stayed or held invalid except as

 


provided in subsection (7) or (9).

 

     (7) The foreclosing governmental unit or a person claiming to

 

have a property interest under section 78i in property foreclosed

 

under this section may appeal the circuit court's order or the

 

circuit court's judgment foreclosing property to the court of

 

appeals. An appeal under this subsection is limited to the record

 

of the proceedings in the circuit court under this section and

 

shall not be de novo. The circuit court's judgment foreclosing

 

property shall be stayed until the court of appeals has reversed,

 

modified, or affirmed that judgment. If an appeal under this

 

subsection stays the circuit court's judgment foreclosing property,

 

the circuit court's judgment is stayed only as to the property that

 

is the subject of that appeal and the circuit court's judgment

 

foreclosing other property that is not the subject of that appeal

 

is not stayed. To appeal the circuit court's judgment foreclosing

 

property, a person appealing the judgment shall pay to the county

 

treasurer the amount determined to be due to the county treasurer

 

under the judgment on or before the March 31 immediately succeeding

 

the entry of a judgment foreclosing the property under this

 

section, or in a contested case within 21 days of the entry of a

 

judgment foreclosing the property under this section, together with

 

a notice of appeal. If the circuit court's judgment foreclosing the

 

property is affirmed on appeal, the amount determined to be due

 

shall be refunded to the person who appealed the judgment. If the

 

circuit court's judgment foreclosing the property is reversed or

 

modified on appeal, the county treasurer shall refund the amount

 

determined to be due to the person who appealed the judgment, if

 


any, and retain the balance in accordance with the order of the

 

court of appeals.

 

     (8) The foreclosing governmental unit shall record a notice of

 

judgment for each parcel of foreclosed property in the office of

 

the register of deeds for the county in which the foreclosed

 

property is located in a form prescribed by the department of

 

treasury.

 

     (9) After the entry of a judgment foreclosing the property

 

under this section, if the property has not been transferred under

 

section 78m to a person other than the foreclosing governmental

 

unit, a foreclosing governmental unit may cancel the foreclosure by

 

recording with the register of deeds for the county in which the

 

property is located a certificate of error in a form prescribed by

 

the department of treasury, if the foreclosing governmental unit

 

discovers any of the following:

 

     (a) The foreclosed property was not subject to taxation on the

 

date of the assessment of the unpaid taxes for which the property

 

was foreclosed.

 

     (b) The description of the property used in the assessment of

 

the unpaid taxes for which the property was foreclosed was so

 

indefinite or erroneous that the forfeiture of the property was

 

void.

 

     (c) The taxes for which the property was foreclosed had been

 

paid to the proper officer within the time provided under this act

 

for the payment of the taxes or the redemption of the property.

 

     (d) A certificate, including a certificate issued under

 

section 135, or other written verification authorized by law was

 


issued by the proper officer within the time provided under this

 

act for the payment of the taxes for which the property was

 

foreclosed or for the redemption of the property.

 

     (e) An owner of an interest in the property entitled to notice

 

under section 78i was not provided notice sufficient to satisfy the

 

minimum requirements of due process required under the state

 

constitution of 1963 and the constitution of the United States.

 

     (f) A judgment of foreclosure was entered under this section

 

in violation of an order issued by a United States bankruptcy

 

court.

 

     (10) A certificate of error submitted to the county register

 

of deeds for recording under subsection (9) need not be notarized

 

and may be authenticated by a digital signature of the foreclosing

 

governmental unit or by other electronic means.