HomeMy WebLinkAboutResolutions - 2017.10.26 - 23173REQUESTING SUSPENSION
OF THE BOARD RULES FOR
IMMEDIATE CONSIDERATION
UNDER NEW BUSINESS
MISCELLANEOUS RESOLUTION #17309
BY: Commissioners Michael J. Gingen, District #1; David Woodward, District #19; Shelley Goodman Taub,
District #12; Hugh D. Crawford, District #9; Marcia Gershenson, District #13; Michael Spisz, District #3;
Eileen Kowall, District #6; Tom Berman, District #5; David Bowman, District #10; Wade Fleming, District
#16; Helaine Zack, District #18; Nancy Quarles, District #17; William Dwyer, District #14; Gary McGillivray,
District #20; Doug Tietz, District #11;
IN RE: BOARD OF COMMISSIONERS — OPPOSING SENATE BILL 386 INVALIDATION OF TAX
FORECLOSURE
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the collection of delinquent real property taxes and the administration of the delinquent tax
revolving fund by the county treasurer under The General Property Tax, 1893 PA 206, as amended, MCL
211.1 to 211.167, is important in assuring that Oakland County (the "County") and local tax collecting units
within the County actually receive taxes levied in a timely manner, that tax delinquent properties in the
County are returned to productive use, and that a favorable credit rating for the County is maintained; and
WHEREAS Senate Bill 386 of 2017, as passed by the Michigan Senate ("SB 386") would undermine the
process for collecting delinquent real property taxes by:
1. increasing litigation against the county treasurer, allowing anyone to challenge a court-ordered
property tax foreclosure for eight new reasons, even a person with no legal interest in the property;
2. clouding title to court-foreclosed properties, reducing sale proceeds used to reimburse local tax
collecting units for unpaid property taxes and reducing delinquent tax revolving fund revenue; and
3. creating uncertainty through retroactivity and interference with a pending case before the Michigan
Supreme Court; and
WHEREAS by allowing new collateral attacks on judicial foreclosure orders after the orders are final and
appeal rights exhausted, SB 386 would undermine the quality of the fee simple title vested in the foreclosing
governmental unit, cloud otherwise clear titles, create uncertainty, and reduce prices paid for tax-foreclosed
properties at tax sales, all of which undermine the current effective tax sale and delinquent tax collection
process; and
WHEREAS for these reasons, the Michigan Association of Counties, the Michigan Association of County
Treasurers, and the county executive and county treasurer of this County have indicated their opposition
to the passage and enactment of SB 386; and
WHEREAS the county executive and county treasurer has asked this Board of Commissioners to join in
opposing SB 386.
NOW THEREFORE BE IT RESOLVED the Oakland County Board of Commissioners hereby opposes the
passage and enactment of Senate Bill 386 of 2017.
BE IT FURTHER RESOLVED that the Oakland County Clerk/Register of Deeds is requested to forward
copies of this adopted resolution to the Oakland County members of the Michigan congressional delegation,
the Michigan Association of Counties, the Michigan Association of County Treasurers, the Oakland County
Executive, the Oakland County Treasurer and the government relations consulting firm representing the
interests of the Oakland County Board of Commissioners.
Chairperson, I move the adoption of the foregoing Resolution.
Co missioner David Woodward
District #19
( C mmis loner Hugh D. Crawford
District 9
C missioner Michael
Districtiar--1
Commis§i ner om Berman
District #5
Commissioner Wade Flemi
District #16
deniMissio
Distpt #1
ary cGillivray
Commissioner
District #
Commissioner
District #
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Commissioner II . Goodman Taub
District #12
Commissioner Marcia Gershenson
District #13
Cohrnresioner Eileen ‘Kowall
District #6
_
Commissioner David Bowman
District #10
liehivn&
Commissioner Helai Zack
District #18
Commissioner William Dwyer
District #14
Commissioner Commissioner
District # District #
Commissioner Commissioner
District # District #
Commissioner Commissioner
District # District #
COUNTY MICHIGAN OAKLAND COUNT)/ EXECUTIVE L. BROOKS PATTERSON
October 19, 2017
Honorable James Tedder
Chairman, Tax Policy Committee
N-892 House Office Building
P.O. Box 30014
Lansing, MI 48909
Re: SB 386
Dear Representative Tedder:
I understand that our Treasurer, Andy Meisner, has already communicated his concerns about this bill
to you and the other members of your committee. I share our Treasurer's concerns and believe that
this bill will make bad law and bad policy. My specific concerns with the bill are as follows:
• it would increase litigation, allowing anyone to challenge a court-ordered property tax
foreclosure, even a person with no legal interest in the tax-foreclosed property;
• it would cloud title to court-foreclosed properties, reducing sale proceeds used to
reimburse local tax collecting units for unpaid taxes, interest, penalties, and fees;
• it would create uncertainty through retroactivity and interferes with a case pending before
the Michigan Supreme Court; and
• it requires personal service on the "defendant," when under state law foreclosure
proceedings are against the land (in rem) and are not against the individual property
owners or taxpayers. Personal service is often difficult to obtain and has not been deemed
necessary in these types of proceedings by the Michigan Supreme Court or United States
Supreme Court.
I am not unsympathetic to our residents who face foreclosure, but the language presently in the
General Property Tax Act contain numerous procedural safeguards that have worked well to define
the foreclosure process. Simply put, SB 386 provides an incentive to litigate rather than pay real
property taxes, which will waste scarce governmental resources. Such a scheme is also unfair to
those taxpayers who timely pay their taxes.
Thank you for your consideration of my concerns on this bill.
Sincerely,
L. Brooks Patterson
Oakland County Executive
2100 Pontiac Lake Road I Waterford, MI 48328 I Telephone (248) 858-0480 Fax (248) 452-9215 I OakGov.com
Resolution #17309 October 26, 2017
Moved by Woodward supported by Hoffman to suspend the rules and vote on Miscellaneous Resolution
#17309 — Board of Commissioners — Opposing Senate Bill 386 Invalidation of Tax Foreclosure.
Vote on motion to suspend the rules:
AYES: Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert,
Woodward, Zack, Berman, Bowman, Crawford, Fleming, Gingell, Hoffman, Jackson. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #17309 — Board of Commissioners — Opposing Senate Bill 386 Invalidation of Tax Foreclosure
carried.
Moved by Woodward supported by Hoffman the resolution be adopted.
Vote on resolution:
AYES: KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward,
Zack, Berman, Bowman, Crawford, Fleming, Gingell, Hoffman, Jackson, Kochenderfer. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 26,
2017, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 26 1h day of October, 2017.
/19/ese:)
Lisa Brown, Oakland County