PUBLIC ACT 123 OF 1999 (as amended 2001, 2003)

Transcription

1 THE GENERAL PROPERTY TAX ACT (EXCERPT) 1893 PA 206 PUBLIC ACT 123 OF 1999 (as amended 2001, 2003) Statement of unpaid taxes; return of delinquent taxes; extension of time; rules; notices. Sec. 57. (1) If a county treasurer receives from a township, city, or village treasurer a statement of unpaid taxes, together with a list of the property on which the unpaid taxes are delinquent, verified according to law, the county treasurer shall enter the unpaid taxes at length on the books in his or her office provided for that purpose. The county treasurer shall make a statement of all descriptions of property returned as delinquent for unpaid taxes, except those rejected by him or her, with the taxes assessed upon those descriptions respectively. The statement, as made and compared, is the return of delinquent taxes by the county treasurer to the department of treasury under this act, and shall be completed not later than the May 1 immediately following the return to the county treasurer of the statements of the township, city, or village treasurers. The state treasurer may extend for a period not to exceed 30 days the time within which the statement shall be completed. The state treasurer shall promulgate rules and regulations governing and shall supervise the preparation of the statement. The statement shall be kept on file in the office of the county treasurer as custodian for the state treasurer and shall not be forwarded to the state treasurer. The county treasurers shall perform the duties with respect to the maintenance and correction of the statement as prescribed by the state treasurer. The statement takes the place of the records of delinquent taxes in the department of treasury before sale of property for delinquent taxes, as provided in this act. (2) For taxes levied before January 1, 1999, within 120 days after the county treasurer receives from the township, city, or village treasurers a statement of unpaid taxes, together with a list of the property on which the unpaid taxes are delinquent, verified according to law, the county treasurer shall mail to the persons to whom those unpaid taxes were levied as well as the legal owner of the property, if they are not the same party, a notice that the taxes have been returned to the county treasurer as unpaid. The notice shall state the amount of taxes unpaid, and penalties, interest, and charges on the taxes, and shall state that a description of the property assessed is on file in the office of the county treasurer. (3) For taxes levied before January 1, 1999, within 120 days after March 1 of the year following the return of the delinquent taxes to the county treasurer, the county treasurer shall again mail the notice on all parcels for which the tax is still unpaid.

2 (4) Any person who wishes at any time to receive notice of the return of taxes on a parcel of property may pay an annual fee not to exceed $5.00 by February 1 to the county treasurer and specify the parcel identification number and address of the property. The county treasurer shall notify the person if the property is returned delinquent within that year. (5) The notices required by this section shall be sent by first class mail, address correction requested. History: 1893, Act 206, Eff. June 12, 1893 ;--Am. 1897, Act 225, Imd. Eff. May 29, 1897 ;--CL 1897, 3880 ;--CL 1915, 4053 ;--CL 1929, 3448 ;--Am. 1935, Act 243, Imd. Eff. June 8, 1935 ;--Am. 1937, Act 325, Imd. Eff. July 27, 1937 ;--Am. 1939, Act 37, Imd. Eff. Apr. 13, 1939 ;--CL 1948, ;--Am. 1967, Act 193, Eff. Nov. 2, 1967 ;--Am. 1976, Act 292, Imd. Eff. Oct. 25, 1976 ;--Am. 1993, Act 291, Imd. Eff. Dec. 28, 1993 ;--Am. 1999, Act 123, Eff. Oct. 1, Payment of taxes on property returned as delinquent; interest and county property tax administration fee; allocation and distribution of taxes and interest; additional charge as lien on property; crediting expense charge to delinquent property tax administration fund and to general fund; reimbursement of state and county; disposition and use of county property tax administration fee; claim by certain persons for credit on taxes paid for homestead property; waiver of interest, fee, or penalty; indicating fee on delinquent tax roll; disposition and use of fees. 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 situated, at any time before the property is sold at a tax sale held pursuant to section 60, bid off to this state pursuant to section 70, or forfeited to a county treasurer pursuant to section 78g. 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, $5.00 of this expense charge shall be credited to a restricted revenue fund of

3 this state, to be known as the delinquent property tax administration fund, 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 delinquent property tax administration fund. 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 to , 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 to , 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. History: 1893, Act 206, Eff. June 12, 1893 ;--CL 1897, 3882 ;--Am. 1899, Act 262, Eff. Sept. 23, 1899 ;-- CL 1915, 4055 ;--Am. 1921, Act 129, Eff. Aug. 18, 1921 ;--CL 1929, 3450 ;--Am. 1932, 1st Ex. Sess., Act 30, Imd. Eff. May 12, 1932 ;--Am. 1933, Act 267, Imd. Eff. July 21, 1933 ;--Am. 1934, 1st Ex. Sess., Act 21, Imd. Eff. Mar. 28, 1934 ;--Am. 1937, Act 91, Imd. Eff. June 18, 1937 ;--Am. 1939, Act 37, Imd. Eff.

4 Apr. 13, 1939 ;--Am. 1941, Act 234, Imd. Eff. June 16, 1941 ;--CL 1948, ;--Am. 1954, Act 55, Eff. Aug. 13, 1954 ;--Am. 1966, Act 244, Imd. Eff. July 11, 1966 ;--Am. 1975, Act 334, Imd. Eff. Jan. 12, 1976 ;--Am. 1976, Act 292, Imd. Eff. Oct. 25, 1976 ;--Am. 1977, Act 166, Imd. Eff. Nov. 16, 1977 ;--Am. 1980, Act 48, Imd. Eff. Mar. 21, 1980 ;--Am. 1981, Act 162, Eff. Dec. 1, 1981 ;--Am. 1982, Act 503, Imd. Eff. Dec. 31, 1982 ;--Am. 1983, Act 254, Imd. Eff. Dec. 29, 1983 ;--Am. 1999, Act 123, Eff. Oct. 1, 1999 ;-- Am. 2001, Act 97, Imd. Eff. July 30, Compiler's Note: Section 2 of Act 503 of 1982 provides: The designation, by this amendatory act, of collection fees as property tax administration fees is intended to clarify the legislative intent and cure any misinterpretation surrounding the fact that a collection fee is imposed to cover all costs necessary and incident to the collection of property taxes, including the costs of assessing property values and in the review and appeal processes Disposition, sale, and redemption of delinquent tax property; purpose, method, and manner; time and place of tax sale; cancellation; expenses, county property tax administration fee, and interest; enforcement of lien; limitation on tax sale. Sec. 60. (1) For taxes levied before January 1, 1999, property returned for delinquent taxes, and upon which taxes remain unpaid after the property is returned as delinquent under this act is subject to disposition, sale, and redemption for the enforcement and collection of the tax liens, in the method and manner as provided in this section and sections 60a to 77. (2) Except as otherwise provided in this subsection, on the first Tuesday in May in each year, a tax sale for taxes levied before January 1, 1999 shall be held in the counties of this state by the county treasurers of those counties for and in behalf of this state. At the tax sale, property delinquent for taxes assessed in the third year preceding the sale or in a prior year shall be sold for the total of the unpaid taxes of those years. Not sooner than April 30, 2000 and April 30, 2001, the county treasurer may cancel the tax sale scheduled to take place on the first Tuesday in May 2000 and the first Tuesday in May 2001, respectively, if there are no outstanding bonds or notes issued by a county pursuant to sections 87b to 87e with respect to the delinquent taxes for which the sale is being conducted. For taxes levied before January 1, 1999, if property returned for delinquent taxes under this act is not offered at a tax sale pursuant to this section on or before May 1, 2001, the property is subject to forfeiture, foreclosure, and sale for the collection of delinquent taxes as provided in sections 78 to 79a. (3) Delinquent tax sales shall include $10.00 for expenses, as provided in section 59, a county property tax administration fee of 4%, and interest computed at a rate of 1.25% per month, except as provided in section 89, from the date the taxes originally became delinquent under this act. (4) In the sale of liens on property for delinquent taxes or the forfeiture, foreclosure, and sale of property for delinquent taxes under sections 78 to 79a, the people of this state have a valid lien on the property, with rights to enforce the lien as a preferred or first claim on the property. The rights and choses to enforce the lien are the prima facie rights

5 of this state, and shall not be set aside or annulled except in the manner and for the causes specified in this act. (5) Any other provision of law to the contrary notwithstanding, a tax sale shall not be held after May 1, History: 1893, Act 206, Eff. June 12, 1893 ;--CL 1897, 3883 ;--CL 1915, 4056 ;--CL 1929, 3451 ;--Am. 1937, Act 325, Imd. Eff. July 27, 1937 ;--Am. 1939, Act 37, Imd. Eff. Apr. 13, 1939 ;--Am. 1941, Act 234, Imd. Eff. June 16, 1941 ;--CL 1948, ;--Am. 1954, Act 55, Eff. Aug. 13, 1954 ;--Am. 1966, Act 244, Imd. Eff. July 11, 1966 ;--Am. 1975, Act 334, Imd. Eff. Jan. 12, 1976 ;--Am. 1977, Act 166, Imd. Eff. Nov. 16, 1977 ;--Am. 1980, Act 48, Imd. Eff. Mar. 21, 1980 ;--Am. 1981, Act 162, Eff. Dec. 1, 1981 ;--Am. 1982, Act 503, Imd. Eff. Dec. 31, 1982 ;--Am. 1993, Act 291, Imd. Eff. Dec. 28, 1993 ;--Am. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2001, Act 100, Imd. Eff. July 30, Compiler's Note: Section 3 of Act No. 48 of 1980 provides: The increased interest rate provided by section 60 shall take effect June 1, For tax sales after June 1, 1980, interest included as part of the delinquent tax sale shall be computed at the increased rate provided by this amendatory act from the date the taxes originally became delinquent. Section 2 of Act 503 of 1982 provides: The designation, by this amendatory act, of collection fees as property tax administration fees is intended to clarify the legislative intent and cure any misinterpretation surrounding the fact that a collection fee is imposed to cover all costs necessary and incident to the collection of property taxes, including the costs of assessing property values and in the review and appeal processes a Cancellation of tax sale; return of property for forfeiture, foreclosure, and sale; county property tax administration fee; enforcement of lien. Sec. 60a. (1) If a county treasurer cancels the tax sale under section 60 on April 30, 2000 as provided in section 60(2), on May 1, 2000, taxes levied after December 31, 1996 and before January 1, 1998 on property in that county that are delinquent under this act are returned to the county treasurer for forfeiture, foreclosure, and sale as provided in sections 78b to 79a. A county property tax administration fee of 4% and interest computed at a noncompounded rate of 1% per month or fraction of a month on the taxes that were originally returned as delinquent, computed from the March 1 that the taxes originally became delinquent, shall be added to the delinquent taxes under this subsection. A county property tax administration fee provided for under this subsection shall not be less than $1.00. (2) If a county treasurer cancels the tax sale under section 60 on April 30, 2001 as provided in section 60(2), on May 1, 2001, taxes levied after December 31, 1997 and before January 1, 1999 on property in that county that are delinquent under this act are returned to the county treasurer for forfeiture, foreclosure, and sale as provided in sections 78b to 79a. A county property tax administration fee of 4% and interest computed at a noncompounded rate of 1% per month or fraction of a month on the taxes that were originally returned as delinquent, computed from the March 1 that the taxes originally became delinquent, shall be added to the delinquent taxes under this subsection. A county property tax administration fee provided for under this subsection shall not be less than $1.00.

6 (3) For taxes levied after December 31, 1998, property returned for delinquent taxes is subject to forfeiture, foreclosure, and sale as provided in sections 78 to 79a. (4) The people of this state have a valid lien on property returned for delinquent taxes, with rights to enforce the lien as a preferred or first claim on the property. The right to enforce the lien is the prima facie right of this state and shall not be set aside or annulled except in the manner and for the causes specified in this act. History: Add. 1999, Act 123, Eff. Oct. 1, c Property remaining subject to lien recorded pursuant to to Sec. 67c. (1) Notwithstanding any other provision of law to the contrary, all property offered at a tax sale held pursuant to section 60 that is sold or bid off to this state pursuant to section 70 shall remain subject to a lien recorded pursuant to part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL to (2) In addition to a lien described under subsection (1), property offered at a tax sale held pursuant to section 60 that is bid off to this state pursuant to section 70 shall remain subject to any lien recorded by this state prior to redemption, sale, or transfer of that property by this state. (3) A lien described under subsection (1) or (2) shall be extinguished on the sale or transfer of the property pursuant to section 131 or section 2101 of the natural resources and environmental protection act, 1994 PA 451, MCL History: Add. 1999, Act 123, Eff. Oct. 1, ***** THIS SECTION IS REPEALED BY ACT 123 OF 1999 EFFECTIVE DECEMBER 31, 2006 ***** Redemption of property following sale; time; showing; payment of redemption money and interest; issuance, delivery, and filing of redemption certificate; noting certificate in tax record book; certificates to be consecutively numbered; reports; evidence of redemption payment. Sec. 74. (1) A person or a city or other political subdivision that owns property on which a tax lien was sold under this act or any interest in property on which a tax lien was sold under this act, at any time before the first Tuesday of May in the year following the sale, may redeem any parcel of that property, or any part or interest in that property, by showing to the satisfaction of the county treasurer that the person, city, or other political subdivision owns only that part or interest in the property that the person, city, or other political

7 subdivision proposes to redeem, and by paying to the county treasurer the amount of the sale of the parcel of property, or the portion of the property to be redeemed, and interest on that amount computed at a rate of 1.25% per month or fraction of a month, except as provided in section 89, from the first day of the month of the sale. If a person, city, or other political subdivision owns less than the whole description sold, the amount required to redeem that part shall be calculated under section 53. Upon the payment of the redemption amount and interest computed at a rate of 1.25% per month, or fraction of a month, except as provided in section 89, to the county treasurer under this section, the county treasurer shall issue a redemption certificate in triplicate in a form prescribed by the department of treasury. One of the triplicate certificates shall be delivered to the person making the redemption payment, 1 shall be filed in the office of the county treasurer, and 1 shall be immediately transmitted to the department of treasury. If the county treasurer fails to forward the certificate to the department of treasury as required by this section, the department of treasury may take possession of the certificate in the office of the county treasurer, and the certificates shall after that time be part of the records and files of the department of treasury. (2) The county treasurer shall also make a note of the redemption certificate in the tax record book kept in his or her office, with the name of the payee, and the date and amount paid. All redemption certificates issued under this section shall be consecutively numbered. The county treasurer shall account for each certificate issued and forward a weekly report to the department of treasury accounting for each certificate issued. (3) A certificate, and the entry of the certificate by the county treasurer, is evidence of a redemption payment in the courts of this state. However, each county treasurer shall make a full and complete report to the department of treasury of all redemption certificates issued by him or her during the redemption period not later than 20 days after the expiration of the redemption period. The department of treasury shall compel, in the manner provided by law, the filing of the reports required under this section by the county treasurers and for that purpose may incur expenses as required. History: 1893, Act 206, Eff. June 12, 1893 ;--Am. 1895, Act 154, Eff. Aug. 30, 1895 ;--Am. 1897, Act 225, Imd. Eff. May 29, 1897 ;--CL 1897, 3897 ;--Am. 1899, Act 262, Eff. Sept. 23, 1899 ;--CL 1915, 4072 ;--Am. 1917, Act 320, Eff. Aug. 10, 1917 ;--CL 1929, 3467 ;--Am. 1932, 1st Ex. Sess., Act 10, Imd. Eff. Apr. 28, 1932 ;--Am. 1937, Act 325, Imd. Eff. July 27, 1937 ;--Am. 1939, Act 37, Imd. Eff. Apr. 13, 1939 ;--Am. 1939, Act 52, Imd. Eff. May 2, 1939 ;--Am. 1941, Act 234, Imd. Eff. June 16, 1941 ;--Am. 1943, Act 231, Imd. Eff. Apr. 20, 1943 ;--CL 1948, ;--Am. 1980, Act 48, Imd. Eff. Mar. 21, 1980 ;--Am. 1981, Act 162, Eff. Dec. 1, 1981 ;--Am. 1982, Act 539, Eff. Mar. 30, 1983 ;--Am. 1993, Act 291, Imd. Eff. Dec. 28, 1993 ;--Am. 1999, Act 123, Eff. Oct. 1, Return, forfeiture, and foreclosure of property; construction of act; election to have state foreclose property forfeited to county; definitions. Sec. 78. (1) The legislature finds that there exists in this state a continuing need to strengthen and revitalize the economy of this state and its municipalities by encouraging the efficient and expeditious return to productive use of property returned for delinquent taxes. Therefore,

8 the powers granted in this act relating to the return of property for delinquent taxes constitute the performance by this state or a political subdivision of this state of essential public purposes and functions. (2) It is the intent of the legislature that the provisions of this act relating to the return, forfeiture, and foreclosure of property for delinquent taxes satisfy the minimum requirements of due process required under the constitution of this state and the constitution of the United States but that those provisions do not create new rights beyond those required under the state constitution of 1963 or the constitution of the United States. The failure of this state or a political subdivision of this state to follow a requirement of this act relating to the return, forfeiture, or foreclosure of property for delinquent taxes shall not be construed to create a claim or cause of action against this state or a political subdivision of this state unless the minimum requirements of due process accorded under the state constitution of 1963 or the constitution of the United States are violated. (3) Not later than December 1, 1999, the county board of commissioners of a county, by a resolution adopted at a meeting held pursuant to the open meetings act, 1976 PA 267, MCL to , and with the written concurrence of the county treasurer and the county executive, if any, may elect to have this state foreclose property under this act forfeited to the county treasurer under section 78g. At any time during December 2004, the county board of commissioners of a county, by a resolution adopted at a meeting held pursuant to the open meetings act, 1976 PA 267, MCL to , and with the written concurrence of the county treasurer and county executive, if any, may do either of the following: (a) Elect to have this state foreclose property under this act forfeited to the county treasurer under section 78g. (b) Rescind its prior resolution by which it elected to have this state foreclose property under this act forfeited to the county treasurer under section 78g. (4) The foreclosure of forfeited property by a county is voluntary and is not an activity or service required of units of local government for purposes of section 29 of article IX of the state constitution of (5) A county and a local governmental unit within that county may enter into an agreement for the collection of property taxes or the enforcement and consolidation of tax liens within that local governmental unit. A local governmental unit shall not establish a delinquent tax revolving fund under section 87b. (6) As used in this section and sections 78a through 157 for purposes of the collection of taxes returned as delinquent: (a) Foreclosing governmental unit means 1 of the following:

9 (i) The treasurer of a county. (ii) This state if the county has elected under subsection (3) to have this state foreclose property under this act forfeited to the county treasurer under section 78g. (b) Forfeited or forfeiture means a foreclosing governmental unit may seek a judgment of foreclosure under section 78k if the property is not redeemed as provided under this act, but does not acquire a right to possession or any other interest in the property. History: Add. 1999, Act 123, Eff. Oct. 1, Compiler's Note: Former section 78 was not compiled a Property returned as delinquent subject to forfeiture, foreclosure, and sale; unpaid taxes from previous year; county property tax administration fee and interest; notice of return of delinquent taxes; annual fee; list identifying property parcels for which notice required; procedures and schedules established by ordinance. Sec. 78a. (1) For taxes levied after December 31, 1998, all property returned for delinquent taxes, and upon which taxes, interest, penalties, and fees remain unpaid after the property is returned as delinquent to the county treasurers of this state under this act, is subject to forfeiture, foreclosure, and sale for the enforcement and collection of the delinquent taxes as provided in section 78, this section, and sections 78b to 79a. As used in section 78, this section, and sections 78b to 79a, taxes includes interest, penalties, and fees imposed before the taxes become delinquent and unpaid special assessments or other assessments that are due and payable up to and including the date of the foreclosure hearing under section 78k. (2) On March 1 in each year, taxes levied in the immediately preceding year that remain unpaid shall be returned as delinquent for collection. Except as otherwise provided in section 79 for certified abandoned property, property delinquent for taxes levied in the second year preceding the forfeiture under section 78g or in a prior year to which this section applies shall be forfeited to the county treasurer for the total of the unpaid taxes, interest, penalties, and fees for those years as provided under section 78g. (3) A county property tax administration fee of 4% and interest computed at a noncompounded rate of 1% per month or fraction of a month on the taxes that were originally returned as delinquent, computed from the March 1 that the taxes originally became delinquent, shall be added to property returned as delinquent under this section. A county property tax administration fee provided for under this subsection shall not be less than $1.00.

10 (4) Any person with an unrecorded property interest or any other person who wishes at any time to receive notice of the return of delinquent taxes on a parcel of property may pay an annual fee not to exceed $5.00 by February 1 to the county treasurer and specify the parcel identification number, the address of the property, and the address to which the notice shall be sent. Holders of any undischarged mortgages wishing to receive notice of the return of delinquent taxes on a parcel or parcels of property may provide a list of such parcels in a form prescribed by the county treasurer and pay an annual fee not to exceed $1.00 per parcel to the county treasurer and specify for each parcel the parcel identification number, the address of the property, and the address to which the notice should be sent. The county treasurer shall notify the person or holders of undischarged mortgages if delinquent taxes on the property or properties are returned within that year. (5) Upon the request of a holder of a tax lien purchased under the Michigan tax lien sale and collateralized securities act, 1998 PA 379, MCL to , and payment to the county treasurer of the actual costs incurred in complying with that request, the county treasurer shall provide a list identifying the parcels of property for which a notice is required under sections 78 to 78 l. The list required under this subsection may be in a computer generated form or other form. (6) Notwithstanding any charter provision to the contrary, the governing body of a local governmental unit that collects delinquent taxes may establish for any property, by ordinance, procedures for the collection of delinquent taxes and the enforcement of tax liens and the schedule for the forfeiture or foreclosure of delinquent tax liens. The procedures and schedule established by ordinance shall conform at a minimum to those procedures and schedules established under sections 78a to 78l, except that those taxes subject to a payment plan approved by the treasurer of the local governmental unit as of July 1, 1999 shall not be considered delinquent as of the following March 1 if payments are not delinquent under that payment plan. History: Add. 1999, Act 123, Eff. Oct. 1, b Notice provisions; June 1. 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, 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 section 71, as shown on the current records of the county treasurer:

11 (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. History: Add. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2003, Act 263, Imd. Eff. Jan. 5, Compiler's Note: Enacting section 3 of Act 263 of 2003 provides: Enacting section 3. This amendatory act is not intended to and shall not be construed to modify or alter the ruling of the Michigan supreme court in Smith v Cliffs on the Bay Condominium Association, docket no c Notice provisions; September 1. 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, 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 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.

12 (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. History: Add. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2003, Act 263, Imd. Eff. Jan. 5, Compiler's Note: Enacting section 3 of Act 263 of 2003 provides: Enacting section 3. This amendatory act is not intended to and shall not be construed to modify or alter the ruling of the Michigan supreme court in Smith v Cliffs on the Bay Condominium Association, docket no d Additional fee; October 1. Sec. 78d. Except as otherwise provided in section 79 for certified abandoned property, on the October 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 add a $15.00 fee on each parcel of property for which the delinquent taxes, interest, penalties, and fees remain unpaid. History: Add. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2003, Act 263, Imd. Eff. Jan. 5, Compiler's Note: Enacting section 3 of Act 263 of 2003 provides: Enacting section 3. This amendatory act is not intended to and shall not be construed to modify or alter the ruling of the Michigan supreme court in Smith v Cliffs on the Bay Condominium Association, docket no Popular Name: Act 206

13 211.78e List of property subject to forfeiture for delinquent taxes; determinations. Sec. 78e. (1) Except as otherwise provided in section 79 for certified abandoned property, on November 1 of each tax year, the county treasurer shall prepare a list of all property subject to forfeiture for delinquent taxes on the immediately succeeding March 1. The list shall include all property on which delinquent taxes, interest, penalties, and fees are unpaid on the November 1 immediately succeeding the date that taxes levied on the property 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 list shall indicate for each parcel the total amount of delinquent taxes, interest, penalties, and fees, computed to the day preceding the forfeiture under section 78g. (2) Not later than December 1 in each tax year, the county treasurer shall determine, to the extent possible, all of the following based exclusively on the records contained in the office of the local assessor, local treasurer, and county treasurer for property subject to forfeiture for delinquent taxes under section 78g on the immediately succeeding March 1: (a) The street address of the property. (b) The name and address of all of the following: (i) The owners. (ii) The holder of any undischarged mortgage, tax certificate issued under section 71, or other legal interest. (iii) A subsequent purchaser under any land contract. (iv) A person entitled to notice of the return of delinquent taxes under section 78a(5). History: Add. 1999, Act 123, Eff. Oct. 1, f Notice provisions; February 1; additional notices. 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

14 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 firstclass mail, 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. (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

15 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. History: Add. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2001, Act 95, Imd. Eff. July 30, 2001 ;--Am. 2003, Act 263, Imd. Eff. Jan. 5, Compiler's Note: Enacting section 3 of Act 263 of 2003 provides: Enacting section 3. This amendatory act is not intended to and shall not be construed to modify or alter the ruling of the Michigan supreme court in Smith v Cliffs on the Bay Condominium Association, docket no g Property delinquent for preceding 12 months or forfeited for total amount; right to possession by foreclosing governmental unit; limitation; recording certificate with county register of deeds; redemption. 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 $ 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

16 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 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

17 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. (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. History: Add. 1999, Act 123, Eff. Oct. 1, 1999 ;--Am. 2001, Act 94, Imd. Eff. July 30, 2001 ;--Am. 2003, Act 263, Imd. Eff. Jan. 5, Compiler's Note: Enacting section 3 of Act 263 of 2003 provides: Enacting section 3. This amendatory act is not intended to and shall not be construed to modify or alter the ruling of the Michigan supreme court in Smith v Cliffs on the Bay Condominium Association, docket no h Petition for foreclosure; filing in circuit court; withholding property by foreclosing governmental unit; hearing date. Sec. 78h. (1) Not later than June 15 in each tax year, the foreclosing governmental unit shall file a single petition with the clerk of the circuit court of that county listing all property forfeited and not redeemed to the county treasurer under section 78g to be foreclosed under section 78k for the total of the forfeited unpaid delinquent taxes, interest, penalties, and fees. If available to the foreclosing governmental unit, the petition shall include the street address of each parcel of property set forth in the petition. The petition shall seek a judgment in favor of the foreclosing governmental unit for the forfeited unpaid delinquent taxes, interest, penalties, and fees listed against each parcel of property. The petition shall request that a judgment be entered vesting absolute title to each parcel of property in the foreclosing governmental unit, without right of redemption. (2) If property is redeemed after the petition for foreclosure is filed under this section, the foreclosing governmental unit shall request that the circuit court remove that property from the petition for foreclosure before entry of judgment foreclosing the property under section 78k. (3) The foreclosing governmental unit may withhold the following property from the petition for foreclosure filed under this section: