Public Act 31 of 2007

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• Introduced by Rep. Paul Condino (D) on March 1, 2007, to eliminate a cap on the maximum amount that tax assessors can raise the assessment of rental property due to a higher occupancy rate, if the assessment had been previously lowered as a result of a lower occupancy rate. A 2002 Supreme Court ruling held that raising these assessments faster than inflation violates the Constitutional tax cap put in place by Proposal A in 1994, which limits assessment increases to five percent or the rate of inflation, whichever is less. Note: The effect of the of this bill and House Bill 4375 in some sense would be retroactive, requiring property owners to pay higher taxes in the future to compensate governments for past tax savings under the WPW ruling.
  • Referred to the House Tax Policy Committee on March 1, 2007.
    • Reported in the House on March 28, 2007, without amendment and with the recommendation that the bill pass.
  • Substitute offered by Rep. Paul Condino (D) on April 17, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the House by voice vote on April 17, 2007.
  • Substitute offered by Rep. Fulton Sheen (R) on April 17, 2007, to replace the previous version of the bill with one that eliminate the retroactive nature of the bill, which would require property owners to pay higher taxes in the future to compensate governments for past tax savings under the WPW ruling. The substitute failed in the House (50 to 58) on April 17, 2007. [Vote Details and Comments]
  • Substitute offered by Rep. Fulton Sheen (R) on April 17, 2007, to replace the previous version of the bill with one that eliminate the retroactive nature of the bill, which would require property owners to pay higher taxes in the future to compensate governments for past tax savings under the WPW ruling. Also, to require a vote of the people on jurisdiction-wide ad-valorem "special assessments" (which some say are no different from regualar property taxes for which a popular vote would be required under the Headlee amendment.) Also, to to revise the rules that local government property tax assessors use to establish the value of property. Under current law, assessors are able to base a property's value on "comparable sales" from the two years prior to the previous April. The amendment would change this to the one-year period prior to the previous Sept. 30. Note: The selling price of many homes in Michigan has fallen in the past year, but many assessments are still being raised because of higher-price sales in the earlier period. . The substitute failed in the House (49 to 59) on April 17, 2007. [Vote Details and Comments]
• Passed in the House (59 to 49) on April 17, 2007. [Vote Details and Comments]
• Received in the Senate on April 19, 2007.
  • Referred to the Senate Finance Committee on April 19, 2007.
  • Substitute offered in the Senate on June 28, 2007, to replace the previous version of the bill with one that does not revise commercial real estate assessments. Instead, the bill was used a "vehicle" to allow Detroit to essentially attach a new $300 solid waste collection fee it has adopted onto property tax bills. Unlike Senate Bill 313 (a similar measure that failed in the Senate on June 21), this version would not allow the city to foreclose on a parcel just because of nonpayment of the solid waste fee, but only if the property owner also was delinquent in property tax payments. The substitute passed in the Senate by voice vote on June 28, 2007.
  • Amendment offered by Sen. Tupac Hunter (D) on June 28, 2007, to allow a property owner to redeem from foreclosure without paying the unpaid garbage tax ("fee"), if the owner pays the delinquent property taxes. The amendment passed in the Senate (34 to 2) on June 28, 2007. [Vote Details and Comments]
• Passed in the Senate (24 to 11) on June 28, 2007, to allow Detroit to essentially attach a new $300 solid waste collection fee it has adopted onto property tax bills. If a property owner was delinquent in both property tax payments and this fee, the city could enforce collection by foreclosing on and ultimately seizing a person's property. However, if property was foreclosed for delinquent taxes and this fee, the owner could redeem it by paying only the back taxes. The unpaid fee would remain a lien on the property, but the bill does not specify how it would be enforced. [Vote Details and Comments]
• Received in the House on June 28, 2007, to allow Detroit to essentially attach a new $300 solid waste collection fee it has adopted onto property tax bills. If a property owner was delinquent in both property tax payments and this fee, the city could enforce collection by foreclosing on and ultimately seizing a person's property. However, if property was foreclosed for delinquent taxes and this fee, the owner could redeem it by paying only the back taxes. The unpaid fee would remain a lien on the property, but the bill does not specify how it would be enforced. Passed in the House (57 to 52) on June 28, 2007. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on June 29, 2007.