MI HB6179

County boards of commissioners may establish a delinquent tax revolving fund, optionally designated as the "100% tax payment fund," to collect delinquent real property taxes owed to county taxing units.

County treasurers must pay delinquent taxes from the fund to school districts, municipalities, the state, and other political units within 20 days (or 30 days for counties with population over 1.5 million) after sufficient funds are deposited.

County board of commissioners, by resolution, shall determine the interest rate to be added to delinquent taxes, not to exceed 1% per month or the highest interest rate paid on county borrowing for the fund.

If delinquent taxes are not received by the county, the county has full right of recourse against taxing units or the state to recover the unpaid amounts plus interest, with county boards authorized to offset uncollectible state education taxes against state education tax collections.

County treasurers may enter into contracts with municipalities, the state, or private entities regarding the fund without further board action, and counties may borrow money to create or fund the delinquent tax revolving fund.