MI HB5891

Local tax collecting units with populations under 4,000 must obtain biennial audits of property tax collection records, accounts, and procedures.

Local tax collecting units with populations of 4,000 or more must obtain annual audits of property tax collection records, accounts, and procedures.

Population is determined by the most recent federal decennial census.

If an audit reveals material deviations from generally accepted accounting principles, applicable state tax commission or department of treasury rules, or any fiscal irregularity, defalcation, or malfeasance, the department of treasury may require an audit in the following year.

Local tax collecting units may hire certified public accountants to perform required audits; if a unit fails to conduct a required audit, the department of treasury will conduct it or appoint a certified public accountant to do so, with all costs borne by the local tax collecting unit.