Commencement of Collection Action
If, after 30 days, the Department has not received any correcting information, the Department will issue a "Bill for Taxes Due" (final assessment). If at any time during the tax billing process the taxpayer cannot pay all the taxes due, the taxpayer may contact the Collection Division to request monthly payments. The phone number for the Collection Division appears on the notice of intent to assess.
If the taxpayer does not make payment or payment arrangements within 35 days of the final assessment, the Department will issue a demand letter. When the taxpayer has received proper notification of a final assessment, the Department may begin collection action after 10 days of the notice of intent to assess [MCL 205. 25(1); MSA 7.657(25)(b)].
General Statute of Limitations
The statute of limitations that governs the collection of taxes administered by the Department is found under the Revised Judicature Act, MCL(NNN) NNN-NNNN MSA A.5813. Legal proceedings may be commenced by the Department for a period of six years after a final assessment of a tax deficiency. Section 5813 provides that: "All other personal actions shall be commenced within the period of six years after the claims accrue and not afterwards unless a different period is stated in the statutes."
Neither the Revenue Act nor the specific taxing statutes contain a specific statute of limitations. Therefore, the general provision applies to collection efforts by the Department. The time period to collect an assessed liability of tax is not extended where the Department makes an adjustment to a finalized assessment that is not in litigation.
Statute of Limitations Suspended During Litigation of Assessment
The time period to effect collection of a final assessment is extended for the periods that the assessment is under litigation, conference or audit. Litigation involves an appeal to the Michigan Tax Tribunal, Michigan Court of Claims, Michigan Court of Appeals, Supreme Court, or other court of competent jurisdiction. The statute of limitations on collection may also be extended by reaffirmation of the tax debt. Reaffirmation of a tax debt will occur if the taxpayer:
1. Makes voluntary payments,
2. Signifies to the debt on a letter of acknowledgment, or
3. Mutually agrees to extend by signing an agreement with the Commissioner of Revenue.
The statute may be tolled if the Department is unable to locate the taxpayer."
Beginning on the third Tuesday in November, all property not previously sold shall again be reoffered for sale, except that the minimum bid shall not be required.
Law: Michigan Compiled Laws, Chapter 211, Sec. 211.60 et seq., "Sale, Redemption, and Conveyance of Delinquent Tax Lands."
Tax Sale List: Use Michigan Tax Sale Lists to search for Michigan tax lien certificates to buy or bid on. Generally most Michigan tax sale lists will identify the property owner, parcel number, legal description and the amount due. In some cases, the tax sale list may include the tax collectors assessed value of the property.
Contact: County treasurer or tax collector.
Interest Rate: Not applicable under the current collection system because there is no right to redeem foreclosed property sold at a tax sale.
Auction Type: Tax Deed (Sec. 211.78m).
Bidding Procedure: Property shall be sold to the person bidding the highest amount above the minimum bid. The foreclosing governmental unit may require full payment by cash, certified check, or money order at the close of each day's bidding (Sec. 211.78m).
Costs: The minimum bid amount includes all expenses of administering the sale, including all preparations for the sale paid in full at the close of each day's bidding (Sec. 211.78m).
Redemption Period: Not applicable; the deed shall vest fee simple title to the property in the person bidding the highest amount above the minimum bid (Sec. 211.78m)."
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