Public Act 244 of 2002

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• Introduced by Sen. John J. H. Schwarz (R) on February 28, 2002, to permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Approximately half of all property owners now pay half the tax in July and half in December; the other property owners either pay the entire bill in December only or in July only. To compensate for the accelerated expense incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75 in 2003 only. However, in all successive years those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the state education tax act to accommodate the date change. See also Senate Bill 1165.
  • Referred to the Senate Finance Committee on February 28, 2002.
  • Substitute offered in the Senate on March 14, 2002, to replace the previous version of the bill with a version with one that reimburses local governments which do not now collect summer taxes $2 per parcel for the extra expense of having to collect summer taxes. The substitute passed by voice vote in the Senate on March 14, 2002.
• Passed 35 to 0 in the Senate on March 14, 2002, to permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Approximately half of all property owners now pay half the tax in July and half in December; the other property owners either pay the entire bill in December only or in July only. To compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75. However, those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. Local governments which do not now collect summer taxes will receive $2 per parcel from the state for the extra expense of having to collect summer taxes, or may allow the state to collect the tax. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the state education tax act to accommodate the date change.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on March 14, 2002, to permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Approximately half of all property owners now pay half the tax in July and half in December; the other property owners either pay the entire bill in December only or in July only. To compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75. However, those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. Local governments which do not now collect summer taxes will receive $2 per parcel from the state for the extra expense of having to collect summer taxes, or may allow the state to collect the tax. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the state education tax act to accommodate the date change.
  • Amendment offered by Rep. Tom Meyer (R) on March 21, 2002, to increase the reimbursement to local governments which do not now collect summer taxes from $2 to $2.50 per parcel, to compensate for the extra expense of having to collect summer taxes. The amendment passed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Nancy Cassis (R) on March 21, 2002, to require that counties which have chosen to collect the state school tax appropriate sufficient funds to do so. The amendment passed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Randy Richardville (R) on March 21, 2002, to allow local governments that have chosen to let the state collect the school property tax change their mind later, and collect it themselves. The amendment passed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Steve Vear (R) on March 21, 2002, to increase the reimbursement to local counties to an amount suffficient to cover the actual cost of collecting the state school taxes. The amendment failed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Steve Vear (R) on March 21, 2002, to increase the reimbursement to local governments which do not now collect summer taxes from $2 to $3 per parcel, to compensate for the extra expense of having to collect summer taxes. The amendment failed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Steve Vear (R) on March 21, 2002, to exempt agricultural land from the earlier tax collection date. The amendment failed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Bruce Patterson (R) on March 21, 2002, to reduce by 50-percent the one-time, one-mill tax cut included in the plan to compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers. The school tax would be 5.5 mills, not 5 mills in 2003. The amendment failed by voice vote in the House on March 21, 2002.
  • Amendment offered by Rep. Alexander Lipsey (D) on March 21, 2002, to make provision for the collection by a city of delinquent property taxes. The amendment passed by voice vote in the House on March 21, 2002.
• Passed 92 to 11 in the House on March 21, 2002, to permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Approximately half of all property owners now pay half the tax in July and half in December; the other property owners either pay the entire bill in December only or in July only. To compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75. However, those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. Local governments which do not now collect summer taxes will receive $2.50 per parcel from the state for the extra expense of having to collect summer taxes, or may allow the state to collect the tax. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the state education tax act to accommodate the date change.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on March 21, 2002, to permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Approximately half of all property owners now pay half the tax in July and half in December; the other property owners either pay the entire bill in December only or in July only. To compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75. However, those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. Local governments which do not now collect summer taxes will receive $2.50 per parcel from the state for the extra expense of having to collect summer taxes, or may allow the state to collect the tax. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the state education tax act to accommodate the date change.
• Passed 36 to 1 in the Senate on April 11, 2002, to concur with the House-passed version of the bill.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. John Engler on April 30, 2002.