MI HB5074

County boards of commissioners may create a "delinquent tax revolving fund" (optionally called the "100% tax payment fund") to centralize collection of delinquent taxes from local taxing units.

County treasurer must pay delinquent taxes to local units within 20 days (or 30 days in counties with populations over 1,500,000) after sufficient funds are deposited in the revolving fund.

If county does not borrow for the fund and fails to pay local units within 10 days after county settlement, the county must pay 12% annual interest on unpaid delinquent taxes.

County may recover uncollected delinquent taxes from local taxing units at an interest rate up to 1% per month, or at the highest interest rate on any county borrowing, whichever applies.

Counties may borrow money to establish the delinquent tax revolving fund under separate provisions (sections 87c and 87d), and the fund is segregated by year of delinquent taxes.