STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6110

November 24, 1982

TAXATION:

Waiver of collection fee by action of township electors

TOWNSHIPS:

Authority of electors to waive collection fee on property taxes

The action of inhabitants of a township taken at the annual meeting to waive the collection fee due on property taxes collected by the township treasurer is invalid as not authorized by the Legislature.

Honorable James K. Dressel

State Representative

The Capitol

Lansing, Michigan

You advise that at the annual township meeting of the township inhabitants in a township in 1982, a motion was presented, seconded and adopted by the inhabitants present to suspend the 1% collection fee on property taxes. You advise further that the township treasurer of the township in question is paid a salary.

You inquire whether, in light of the action taken by the inhabitants of the township at the annual meeting, the township treasurer may collect the 1% collection fee on the December 1, 1982 property bills.

Townships have such power only as are conferred by the Legislature. Const 1963, art 7, Sec. 17. Hanslovsky v Twp of Leland, 281 Mich 652, 655; 275 NW 720 (1937); Beech Grove Investment Co v Civil Rights Commission, 380 Mich 405; 157 NW2d 213 (1968).

The collection fee of 1% is imposed by the General Property Tax Act, 1893 PA 206, Sec. 44(4); MCLA 211.44; MSA 7.87, which, in pertinent part, provides:

Your question is not unlike that considered in OAG, 1979-1980, No 5439, p 39 (February 7, 1979), where the inhabitants of a township at the annual township meeting acted to establish the hours of employment for township employees. The opinion noted that the Legislature had vested the authority to fix hours of work for township employees in various township agencies and concluded that the inhabitants of a township are without authority to establish the working hours for township employees. OAG, 1979-1980, No 5439, supra, relied upon OAG, 1961-1962, No 3619, p 249 (February 5, 1962), which traced the history of the authority of the inhabitants of a township at the annual meeting and noted the diminution of the powers of the inhabitants by the Legislature by statutory transfer to the township board.

While the Legislature may confer authority upon the inhabitants of a township to waive the 1% collection fee on property taxes, in its wisdom, the Legislature has vested this power in the township board. It has not conferred this authority upon the inhabitants of the township. This statutory power once delegated by the Legislature to a municipal corporation may not be redelegated by that body to the inhabitants of the township. OAG, 1965-1966, No 4434, p 258 (May 2, 1966).

The township board may consider the action taken by the inhabitants of the township and, in its discretion, may waive the 1% collection fee in full or in part. The decision of the inhabitants is without effect as not authorized by law.

It is my opinion, therefore, that in the absence of action of the township board waiving the collection fee, the township treasurer has the duty to collect such fee on the December 1, 1982 property tax bills.

Frank J. Kelley