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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5777 September 10, 1980 TAX COLLECTION: Partial payment of property taxes While the Legislature has expressly authorized the deferment of property taxes by certain eligible persons until such time as they received state income tax credits, it has not authorized the partial payment of property taxes in other cases of alleged hardship. Ms. Agnes Mary Burke City Clerk City of Manton 306 West Main, Box 100 Manton, Michigan 49663 You have requested my opinion whether it is permissible for a city treasurer to accept partial payments of real property taxes in hardship cases. OAG, 1977-1978, No 5400, p 711 (December 12, 1978) concluded that statutory or charter authority is necessary before a partial payment or installment payment of property taxes may be made. This opinion stated: 'Thus 1893 PA 206, Sec. 53, supra, authorizes the separate payment in full of the property tax of a school, county, township, or other governmental unit, but does not authorize the partial payment of any one tax, nor does it authorize the proration of less than 100% payment of the total taxes due among the various tax-levying entities. This conslusion[sic] is supported by Chapin Mining Co v Uddenberg, 126 Mich 375, 377; 85 NW 872 (1901), wherein the Court, in construing Sec. 53, held: 'the taxpayer may not pay a portion of a given tax today, and another portion tomorrow, and still another portion next week, thus allowing him to pay his tax in installments; but we are also of the opinion, as we have already said, that he may pay a portion of the tax which he deems to be valid, and receive a receipt therefor, and contest the validity of that portion of the tax unpaid. 'Furthermore, in Sayers v O'Connor, 124 Mich 256, 258; 82 NW 1044 (1900) it was held that: 'The tax collector is not obliged to take payment of a given tax in installments. There is, however, statutory authority for deferral of property taxes for certain eligible individuals. If persons seeking to make partial payments are, for example, senior citizens, widows, veterans, or disabled persons, they may, if otherwise eligible, avail themselves of 1893 PA 206; MCLA 211.1 et seq; MSA 7.1 et seq, Sec. 51, as last amended by 1978 PA 274, which provides in pertinent part: '(2) In a city, village, or township which collects a summer tax a person who is a paraplegic, quadriplegic, senior citizen, eligible serviceman, eligible veteran, eligible widow, totally and permanently disabled, or blind, as those persons are defined in chapter 9 of Act No. 281 of the Public Acts of 1967, as amended, being sections 206.51 to 206.532 of the Michigan Compiled Laws, and who for the prior taxable year had a total household income of $10,000.00 or less, may defer the summer taxes until the following February 15 by filing with the treasurer of the city, village, or township an intent to defer the homestead property taxes which are due and payable in July of that year without penalty or interest. Taxes deferred under this subsection which are not paid by the following February 15 shall not be subject to penalties or interest for the period of deferment.' In 1893 PA 206, supra, Sec. 44, as last amended by 1977 PA 166, the Legislature has provided: 'Upon receipt of the tax roll the township treasurer or other collector shall proceed to collect the taxes. . . . On all taxes paid after February 14 the governing body of a city or township may authorize the treasurer to add to the tax and 1% fee an additional collection fee to 3% of the tax. The additional collection fee, if added, may be waived by the governing body of a city or township for a senior citizen, (1) paraplegic, quadriplegic, eligible serviceman, eligible veteran, eligible widow, totally and permanently disabled, or blind, as those persons are defined in chapter 9 of Act No. 281 of the Public Acts of 1967, as amended, being sections 206.501 to 206.532 of the Michigan Compiled Laws, who makes a claim before February 15 for the credit provided by chapter 9 of Act No. 281 of the Public Acts of 1967, as amended, being sections 206.501 to 206.532 of the Michigan Compiled Laws, who presents a copy of the form filed for that credit to the local treasurer, and who has not received the credit before February 15. . . .' Pursuant to the authority granted in these sections, the city may allow an eligible person (as defined in these sections) to defer the summer tax until February 15 next upon filing an intent to defer with the treasurer. Further, the city may waive the collection fee imposed for the collection of taxes after February 15 for those eligible persons who make claim for a property tax credit on their state income tax and have not received the credit before February 15. If the taxes are returned delinquent to the county on March 1, 1893 PA 206, supra, Sec. 59, as last amended by 1977 PA 166, further allows the county to waive collection fees and interest for taxes paid on or before April 30 of the collection year as follows: '(1) A person may pay the taxes, or any 1 of the several taxes, on a parcel or description of land returned as delinquent, or on an undivided share of a parcel or description of land returned as delinquent, with interest computed from March 1 next after the taxes were assessed at the rate of 1% per month or fraction of a month, with 4% as a collection fee. . . . (3) A county board of commissioners, by resolution, may provide that for taxes paid in the first year of delinquency before May 1 for a senior citizen, paraplegic, quadriplegic, eligible serviceman, eligible veteran, eligible widow, totally and permanently disabled, or blind, as those persons are defined in chapter 9 of Act No. 281 of the Public Acts of 1967, as amended, being sections 206.501 to 206.532 of the Michigan Compiled Laws, who makes a claim before February 15, for the credit provided by chapter 9 of Act No. 281 of the Public Acts of 1967, as amended, who presents a copy of the form filed for that credit to the county treasurer, who has not received the credit before March 1, and who states that the credit was needed to pay the taxes: (a) Any collection fee in excess of the fee that would have been added if the tax had been paid before February 15 shall be waived. (b) Interest paid pursuant to subsection (1) shall be refunded from the general fund of the county.' Therefore, upon action by the appropriate body, an eligible individual may defer both summer and winter taxes until February 15 of the year following the levy. Further, an eligible individual entitled to a property tax credit may defer the tax until April 30 of that year. The Legislature has recognized the possible hardships of eligible persons in paying the property taxes by expressly providing for deferral of payment of such taxes until state income tax credits are received. It has not made similar provision for deferral or partial payment of taxes in other hardship. It is, therefore, my opinion that receipt of partial payment of property taxes is not authorized. Frank J. Kelley Attorney General (1)
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