MI SB0562

County boards of commissioners may establish a delinquent tax revolving fund (optionally designated the "100% tax payment fund") to collect delinquent taxes from local taxing units and the state for state education taxes.

County treasurers must pay delinquent taxes from the fund to school districts, intermediate school districts, community colleges, cities, townships, and other political units within 20 days (or 30 days for counties with populations exceeding 1,500,000 persons) after sufficient funds are deposited.

Counties may charge local taxing units or the state an interest rate of up to 1% per month on uncollected delinquent taxes, or a lower rate established by board resolution, with any uncollected amounts becoming a lien against future tax payments.

County treasurers may enter into contracts with municipalities, the state, or private entities to manage the fund and any borrowing authorized under sections 87c or 87d without requiring additional board approval.

County boards may transfer surplus funds from the delinquent tax revolving fund to the county general fund, and counties may borrow money to establish the fund under sections 87c or 87d.