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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. 5931 July 15, 1981 CITIES: Approval of early collection of school taxes CONSTITUTIONAL LAW: Const 1963, art 9, Sec. 3--uniformity of taxation SCHOOLS AND SCHOOL DISTRICTS: Early collection of school taxes School taxes include levies for bonded debt A board of education of a school district located partially in a city and in one or more townships may request the governing body of the city and the townships to provide for early collection of school taxes, including taxes levied to pay bonded debt of the district. Final authority to provide for early collection of taxes resides in the governing body of the city and the township respectively. Authorization given by the city or township may be reconsidered and rescinded. Early collection of school taxes in only part of the school district due to the lack of approval of the governing body of each city and township in which the school district is partially located does not violate Const 1963, art 9, Sec. 3. The Honorable Everitt Lincoln State Representative State Capitol Lansing, Michigan You have requested my opinion on four questions which may be phrased as follows: 1. Under 1976 PA 451, Sec. 1611, has the ultimate authority to determine whether the total or one-half of the school taxes will be collected at the same time as the city taxes been reposed in the city council or the board of education? 2. Under 1976 PA 451, Sec. 1611, does the phrase 'school taxes' include both operating millage and millage imposed to retire bonded indebtedness? 3. Under 1976 PA 451, Sec. 1611, may a city council, in some subsequent fiscal year, rescind its approval to collect the total or one-half of the school taxes at the same time that the city taxes are collected? 4. Under 1976 PA 451, Sec. 1611, if one-half of the school district taxes are due at the same time as the city taxes in that portion of the school district located within the city, and the school district taxes in those portions of the school district located in several townships are not due until several months later, has there been a violation of Const 1963, art 9, Sec. 3, which mandates uniform general ad valorem taxation? In the School Code of 1976, 1976 PA 451; MCLA 380.1 et seq; MSA 15.4001 et seq, Sec. 1611, as last amended by 1981 PA 87, 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. In the event of a certification, the appropriate officials of each city in which the school district or intermediate school district is located shall assess, spread, and collect the taxes certified and shall remit the collections to the school district or intermediate school district. Except where a city assessed and collected school taxes pursuant to this section prior to December 31, 1974, reasonable expenses incurred by the city in assessing and collecting the school taxes, to the extent that those expenses are in addition to the expenses of assessing and collecting other taxes at the same time and exceed the amount of any fee imposed by the city for collection of the school taxes, shall be billed to and paid by the school board of education or intermediate school board. '(2) In proceedings for the assessment, spreading, and collection of taxes for school purposes in the school district or intermediate school district, and for the receipt and disbursement of money belonging to the school district or intermediate district, the city assessing officer, city clerk, and city treasurer of the city in which the school district or intermediate school district is situated shall have like powers and duties as prescribed by the laws of this state for township supervisors, township clerks, and township treasurers. '(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 or, if the city approves the collection of school taxes on a date other than the date it collects the city taxes, on July 1. The school taxes which are collected with the city taxes shall be subject to the same penalties, interest, and collection charges as city taxes and shall be returned as delinquent to the county treasurer in the same manner and with the same interest, penalties, and collection fees as city taxes are returned. School taxes collected pursuant to this section on or before August 31 of each year by a city that approves the collection of school taxes on a date other than the date it collects city taxes shall be without penalty, but such taxes collected after August 31 in each year shall bear a penalty of 4%. All interest and penalties attributable to school taxes other than collection fees shall belong to the school district or intermediate school district. The collection fees shall be retained by the city. All interest, penalties, and collection fees added to the school taxes upon being returned delinquent to the county treasurer shall belong to the school district or intermediate school district upon collection by the county treasurer.' Based upon the plain language of 1976 PA 451, Sec. 1611, supra, it is clear that the school district may request the city council to collect either the total or one-half of the school taxes at the same time that the city taxes are collected. (1) However, it is equally clear that the ultimate authority to approve the collection of either the total or one-half the school taxes at the same time that the city taxes are collected is reposed in the city council. It is my opinion, therefore, that the ultimate authority to determine whether the total or one-half of the school taxes will be collected at the same time as the city taxes has been reposed in the city council. Turning to your second question, 1976 PA 451, Sec. 1611(1), supra, speaks of 'the total or 1/2 of the levy of school taxes.' The statutory language does not distinguish between millage levied for school operating purposes and millage imposed to retire bonded indebtedness. Further, in 1976 PA 451, supra, Sec. 1364, the Legislature has treated taxes levied to pay principal and interest on bonded indebtedness as 'school taxes.' It is my opinion, therefore, that the phrase 'school taxes' as employed in 1976 PA 451, Sec. 1611, supra, includes both operating millage and millage imposed to retire bonded indebtedness. Turning to your third question, there is no language in 1976 PA 451, Sec. 1611, supra, addressing whether a city council may, in some subsequent fiscal year, rescind its approval to collect school taxes at the same time that city taxes are collected. 1976 PA 451, Sec. 1611, supra, by its terms, does not preclude the legislative body from reviewing and changing its prior determination upon proper and timely notice to the board of education of the school district. It is my opinion, therefore, that under 1976 PA 451, Sec. 1611, supra, a city council may, in some subsequent fiscal year, rescind its approval to collect the total or one-half of the school taxes at the same time that the city taxes are collected. Turning to your fourth question, the law is settled in Michigan that general ad valorem property taxes must be uniformly imposed within the taxing unit as to both rate and mode of assessment. Const 1963, art 9, Sec. 3; Titus v State Tax Commission, 374 Mich 476, 480; 132 NW2d 647 (1965). However, uniformity of taxation does not require uniformity in the manner of collecting or enforcing the tax. Hammett v Kansas City, 351 Mo 192; 173 SW2d 70 (1943). Some taxpayers may be required to pay their property taxes earlier than other property taxpayers if there is a reasonable basis for such classification. Rode v Siebe, 119 Cal 518; 51 P 869 (1898). Here, the collection of one-half of the school taxes in the city portion of the school district in the summer (2) will help to alleviate the need of school districts to pay large amounts of public funds in interest on the money they borrow in anticipation of December school property tax collections. See OAG, 1981-1982, No 5859, p ___ (March 6, 1981). A school district that encompasses portions of one or more cities and one or more townships may, pursuant to 1976 PA 451, supra, Secs. 1611 and 1612, by board resolution, seek to have one-half the school taxes collected in the summer by each such city and township. In the event the school district proceeds in that manner, any different treatment of school taxpayers would be based, not upon the conduct of the school district, but upon the conduct of the city and each township in exercising its statutory right to approve or disapprove the summer collection of school taxes. The approval of school tax collection in the summer in one governmental unit and the failute to approve such collection in another governmental unit would not result in a violation of Const 1963, art 9, Sec. 3. It is my opinion, therefore, that under 1976 PA 451, Sec. 1611, supra, if one-half of the school district taxes are due at the same time as the city taxes in that portion of the school district located within the city, and the school district taxes in those portions of the school district located in several townships are not due until several months later, there has not been a violation of Const 1963, art 9, Sec. 3. Frank J. Kelley Attorney General (1)
(2)
In the city in question, the property taxes are due and become a lien upon the property on August 1 of each year.
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