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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. 5859 March 6, 1981 CITIES: Collection of school taxes SCHOOLS AND SCHOOL DISTRICTS: Collection of school property taxes within cities A city which levies and collects municipal taxes due on December 1 is not authorized to collect school taxes on the preceding July 1. The Honorable Jack E. Kirksey State Representative State Capitol Lansing, Michigan You have requested my opinion on the following question: May a home rule city which collects municipal taxes under its charter once a year on December 1 and whose fiscal year begins on December 1 provide by resolution of its legislative body, at the request of the board of a school district situated in the city, to collect one-half of the school taxes on July 1 preceding and the balance at the same time as the city taxes? The statute establishing home rule cities, 1909 PA 279; MCLA 117.1 et seq; MSA 5.2071 et seq, Sec. 3, states, in pertinent part, as follows: 'Each city charter shall provide the following: (g) For annually laying and collecting taxes. . . . (i) For the levy, collection, and return of state, county, and school taxes in conformance with the general laws of the state, except that the preparation of the assessment roll, the meeting of the board of review, and the confirmation of the assessment roll may be at the times provided in the city charter.' This section, therefore, requires, inter alia, a city charter to provide for the annual levy and collection of taxes and further requires the charter to provide for the levy, collection and return of school taxes pursuant to general law. In the School Code of 1976, 1976 PA 451; MCLA 380.1 et seq; MSA 15.4001 et seq, Sec. 1611, the Legislature has provided: '(1) Upon the approval of the city governing body, the board of a school district or intermediate school district situated in whole or in part in a city may certify the total or 1/2 of the levy of school taxes on the taxable property of the city portion of the school district or intermediate school district for collection at the same time as for the collection of city taxes. . . . (3) School taxes collected by a city shall become a lien against the property on which assessed in the same manner and on the same date as city taxes. . . .' (Emphasis added.) Applying the above quoted statutory provision to a city that collects municipal taxes on December 1, it is clear that the school taxes do not become a lien on the property until December 1. Thus, a city that levies and collects municipal taxes due on December 1 may not collect school taxes on the preceding July 1. In this regard, compare 1976 PA 451, supra, Sec. 1612(2), which expressly provides that in townships collecting school taxes in the summer such taxes become a lien on the property on July 1. It would appear, based upon 1976 PA 451, supra, Sec. 1611(1), that the Legislature intended to authorize July and December collections of school taxes in cities. However, 1976 PA 451, supra, Sec. 1611(3), which frustrates that purpose where the city levies and collects municipal taxes due on December 1, it apparently based upon the misapprehension that all city charters provide for the levy and collection of city taxes due on July 1. School districts that must wait until December 1 to obtain a large portion of their property taxes must pay large amounts of public funds in interest on the money they borrow in anticipation of December school property tax collections in cities. Thus, the Legislature may wish to consider amendatory legislation authorizing the July 1 collection of school taxes in cities that levy and collect municipal taxes due on December 1. It is, therefore, my opinion that a city which levies and collects municipal taxes under its charter due on December 1 may not collect school taxes on the preceding July 1. Frank J. Kelley Attorney General
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