Author Archives: Samantha Harkins

House Committee Passes Tweaks to PA 152 of 2011

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Back in October the Senate passed positive tweaks to PA 152 of 2011.  The House Financial Liabilities Reform Committee has held numerous hearings on the package of bills, Senate Bills 541-545, that make positive clarifying changes to PA 152 of 2011, the Publicly Funded Health Insurance Contribution Act. The bills have been reported from committee.

Senate Bill 541 would amend the definition of “medical benefit plan”, which currently excludes benefits provided to individuals retired from a public employer. The bill also would exclude a public employer’s contributions to a fund used for the sole purpose of funding health care benefits available to public employees or elected public officials only upon retirement or separation from service.

Senate Bill 542 would amend the requirements regarding the cap on the dollar limit that a public employer may pay toward health care costs. The bill would also increase the multiplier used to calculate the cap on the total dollar amount that a public employer may pay toward health care costs for individual and spouse coverage;include individual plus one nonspouse dependent coverage within family coverage for cap calculation purposes; include elected officials in calculation of the cap; and exclude from calculation of the cap employees or elected officials who declined coverage.

Senate Bill 543 would amend provisions that allow a public employer to opt for a percentage limit on its medical plan contributions, instead of complying with the dollar amount limits, for a medical benefit plan coverage year. Under this option, a public employer may not pay more than 80% of the total annual costs of all of the medical benefit plans it offers or contributes to for its employees and elected public officials.

Senate Bill 544 would require any contracts or other agreements in effect on September 27, 2011, to conform to contribution limits under the Publicly Funded Health Insurance Contribution Act. Currently, this applies to agreements in effect on September 15, 2011.

Senate Bill 545 would modify a provision that allows a local unit of government to exempt itself from the Act’s requirements by a two-thirds vote of its governing body each year, and requires a two-thirds vote to extend an exemption to a new year. The bill would require an exemption or extension vote to take place before the beginning of the medical benefit plan coverage year.

The League is supportive of these changes as they are important clarifications that will help with PA 152 compliance and interpretation from the Department of Treasury.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Senate Passes Bill to Allow for Transition from Land Lines to Internet-Based Telephone Service

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This afternoon the Senate reported Senate Bill 636, a bill that would give phone companies the ability to transition from traditional land lines to internet-based service beginning January 1, 2017.
The bill would amend the Michigan Telecommunications Act to do make a number of changes including eliminating a requirement for a Michigan Public Service Commission (MPSC) proceeding for a telecommunication provider to discontinue basic local exchange or toll service to an exchange, beginning January 1, 2017. It would also require a provider wishing to discontinue service to notify the MPSC, the provider’s customers, any interconnecting providers, and the public at the same time as filing a petition for discontinuance with the Federal Communications Commission (FCC).
The bill would further require a provider to notify the same parties again upon the FCC’s approval, at least 90 days before discontinuing service. It would also allow the MPSC to issue an order allowing the current provider to provide the service until another willing provider was available, if the MPSC determined that another provider was not capable of providing the service.

The legislation now heads to the House for approval.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Legislation Decreasing Interest on County Chargebacks

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Earlier this week the House Local Government Committee reported on HB 5074, a bill that would change the monthly interest rate that a county treasurer can charge other taxable units in the county that have delinquent property taxes due. The current monthly rate of interest is one percent. Under the bill, the monthly rate of interest would be “up to” one percent.
Under Michigan’s tax reversion process, county treasurers can assess “chargebacks” under the protocol they follow when local units of government have borrowed from a county’s delinquent tax revolving fund. If summer and winter property taxes are not collected by March 1 of the following year that the tax is owed, local treasurers pass on notices of unpaid or delinquent taxes to county treasurers. In many counties, the county treasurer runs a delinquent tax revolving fund.
Upon receiving the notices of unpaid taxes, the county treasurer advances funds to those
local governments that are owed taxes, making them financially whole at that time with
the understanding that local treasurers will pay back the advance, either after the taxes in
arrears are paid by the property owners, or after the property is sold at a public auction.
Under state statute, county treasurers charge a monthly interest rate of 1 percent for advancing the money to make the local unit of government whole.  This legislation would give the county discretion to charge “up to” one percent.
The legislation now goes to the full House for approval.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Legislation Decreasing Interest on County Chargebacks

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Earlier this week the House Local Government Committee reported on HB 5074, a bill that would change the monthly interest rate that a county treasurer can charge other taxable units in the county that have delinquent property taxes due. The current monthly rate of interest is one percent. Under the bill, the monthly rate of interest would be “up to” one percent.
Under Michigan’s tax reversion process, county treasurers can assess “chargebacks” under the protocol they follow when local units of government have borrowed from a county’s delinquent tax revolving fund. If summer and winter property taxes are not collected by March 1 of the following year that the tax is owed, local treasurers pass on notices of unpaid or delinquent taxes to county treasurers. In many counties, the county treasurer runs a delinquent tax revolving fund.
Upon receiving the notices of unpaid taxes, the county treasurer advances funds to those
local governments that are owed taxes, making them financially whole at that time with
the understanding that local treasurers will pay back the advance, either after the taxes in
arrears are paid by the property owners, or after the property is sold at a public auction.
Under state statute, county treasurers charge a monthly interest rate of 1 percent for advancing the money to make the local unit of government whole.  This legislation would give the county discretion to charge “up to” one percent.
The legislation now goes to the full House for approval.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Bill to Tweak PRE for Seniors in Assisted Living

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Earlier this week the House Tax Policy Committee passed House Bill 4810, a bill that tweaks the principal residence exemption (PRE) for certain seniors in assisted living.
Public Act 324 of 2012 amended the General Property Tax Act to allow a person who previously occupied a property as a principal residence but now resides in a nursing home or an assisted living facility to retain the exemption on property previously exempt as the principal residence if the owner “manifests an intent to return to that property” by satisfying all of the following conditions: (1) the owner continues to own the property while residing in the nursing home or assisted living facility; (2) the owner has not established a new principal residence; (3) the owner maintains or provides for the maintenance of the property; and (4) the property is not occupied, is not for sale, is not leased, and is not used for any business or commercial purpose.
House Bill 4810 would amend this provision to delete the requirement that the property not be for sale. The amendment would be retroactive and effective for taxes levied after December 31, 2012.
The bill is on the House floor awaiting approval from the full chamber.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Legislation to Prohibit Interest During PRE Appeal

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This week the House Tax Policy Committee reported House Bill 4406, a bill that would amend the General Property Tax Act to provide that interest could not be charged when the Hearings Division of the Department of Treasury is considering an appeal for a denial of a principal residence exemption claim.

The Department of Treasury has the authority to conduct audits and deny a principal residence exemption claim if it deems it appropriate after the audit. Currently, during an appeal, interest accrues at a rate of 1.25 percent per month. This bill would prohibit that interest from being charged.

The bill now goes to the full House for approval.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Senate Committee Advances Bill to Transition Land Lines to Internet-Based Service

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Earlier this week the Senate Energy and Technology Committee reported Senate Bill 636, a bill that would give phone companies the ability to transition from traditional land lines to internet-based service beginning January 1, 2017.
The bill would amend the Michigan Telecommunications Act to do make a number of changes including eliminating a requirement for a Michigan Public Service Commission (MPSC) proceeding for a telecommunication provider to discontinue basic local exchange or toll service to an exchange, beginning January 1, 2017. It would also require a provider wishing to discontinue service to notify the MPSC, the provider’s customers, any interconnecting providers, and the public at the same time as filing a petition for discontinuance with the Federal Communications Commission (FCC).
The bill would further require a provider to notify the same parties again upon the FCC’s approval, at least 90 days before discontinuing service. It would also allow the MPSC to issue an order allowing the current provider to provide the service until another willing provider was available, if the MPSC determined that another provider was not capable of providing the service.

The legislation is now on the Senate Floor awaiting approval by the full chamber.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

 

House Considers Legislation Eliminating Printed Copies of Tax Rolls

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Earlier this week the House Local Government Committee reported HB 5102, a bill that would eliminate the requirement that county treasurers make a printed copy of the tax rolls available for inspection, if the tax roll is maintained on a computerized database.
Now under the law, the State Tax Commission must authorize the use of a computerized
data base system as the tax roll if the local tax collecting unit or the county treasurer
demonstrates that the proposed system has the capacity to enable compliance with nine state requirements. House Bill 5102 would eliminate in their entirety the four requirements for printed copies to be available of (1) the “original pre-collection tax roll,” (2) a separate printout of “all parcel splits and combinations,” (3) a separate computer printout of all corrections and adjustments to the pre-collection tax roll authorized the by the board of review,” and (4) the requirement to make available “a posted computer printed tax roll.”

The bill now goes to the full House for approval.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Legislation Decreasing Interest on County Chargebacks

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Earlier this week the House Local Government Committee reported HB 5074, a bill that would change the monthly interest rate that a county treasurer can charge other taxable units in the county that have delinquent property taxes due. The current monthly rate of interest is one percent. Under the bill, the monthly rate of interest would be “up to” one percent.
Under Michigan’s tax reversion process, county treasurers can assess “chargebacks” under the protocol they follow when local units of government have borrowed from a county’s delinquent tax revolving fund. If summer and winter property taxes are not collected by March 1 of the following year that the tax is owed, local treasurers pass on notices of unpaid or delinquent taxes to county treasurers. In many counties, the county treasurer runs a delinquent tax revolving fund.
Upon receiving the notices of unpaid taxes, the county treasurer advances funds to those
local governments that are owed taxes, making them financially whole at that time with
the understanding that local treasurers will pay back the advance, either after the taxes in
arrears are paid by the property owners, or after the property is sold at a public auction.
Under state statute, county treasurers charge a monthly interest rate of 1 percent for advancing the money to make the local unit of government whole.  This legislation would give the county discretion to charge “up to” one percent.
This legislation now goes to the full House for approval.
Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Legislature Out for In District Work Period and Thanksgiving

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The legislature has been out the last two weeks in November for their in district work period and the Thanksgiving holiday.  They will be back in session beginning the week of December 2.  We expect two final weeks of legislative session before they break for the holidays.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org