[ Previous Page] [ Home Page ]
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. 6635 August 22, 1989 EDUCATION: Adjustment in state equalized valuation of school districts STATE SCHOOL AID ACT OF 1979: Adjustment in state equalized valuation of school districts in the amount of uncollected personal property taxes removed from tax rolls TAXATION: Adjustment in state equalized valuation of school districts The Department of Education may not adjust for state school aid purposes the state equalized valuation of school districts by the amount of uncollected personal property taxes removed from the tax rolls. Honorable Gregory E. Pitoniak State Representative The State Capitol Lansing, MI 48909 You have requested my opinion on a question which may be phrased as follows: Does removing uncollected personal property taxes from the tax rolls of municipalities pursuant to MCL 211.56a; MSA 7.100(1), require the Michigan Department of Education to adjust the state equalized valuation of the school district where the personal property was located under MCL 388.1721; MSA 15.1919(1021). In section 56a of the General Property Tax Act, 1893 PA 206, MCL 211.56a; MSA 7.100(1), the Legislature has provided a procedure for entering a judicial decree removing from the tax rolls uncollected personal property taxes which have remained unpaid for more than five years after they were returned to the county treasurer as delinquent. The statutory provision provides, in pertinent part, that the decree recite that such taxes shall be stricken from the tax rolls of the county and of the township or city and shall cease to constitute an asset of such township or city, of the county in which the same is located and of any school district in which such personal property was located at the time it was assessed for taxes and that the debt created by the provisions of this act or by any city charter of the person assessed for such taxes to the township or city shall, from the date of such decree, assume the status of a debt against which the statute of limitations has run.... Section 121 of the State School Aid Act of 1979, 1979 PA 94, MCL 388.1721; MSA 15.1919(1021), provides: The valuation of a whole or fractional district shall be the total state equalized valuation of the property contained in the whole or fractional district as last fixed by the state tax commission and placed on the ad valorem tax roll. Adjustments to this state equalized valuation shall be made for the following: (a) State tax tribunal decisions. (b) Court decisions. (c) County board of review adjustments made after the state tax commission determination. (d) Lands deeded to the state for jurisdictions without delinquent tax revolving funds or for jurisdictions that have required repayment to the delinquent tax revolving funds. (e) The requirements of this act. In the above quoted statute, the Legislature has required the Michigan Department of Education to make adjustments to the state equalized valuation of school districts based on administrative tribunal or court decisions affecting those state equalized valuations. However, the court decrees described in Sec. 56a of the General Property Tax Act, supra, are not court decisions altering the state equalized valuation of school districts. Rather, they correct public records by removing therefrom accounts receivable or debts against which the statute of limitations has run. It is my opinion, therefore, that the removing of uncollected personal property taxes from the tax rolls of municipalities pursuant to MCL 211.56a; MSA 7.100(1), does not empower the Michigan Department of Education to adjust, under MCL 388.1721; MSA 15.1919(1021), the state equalized valuation of the school district where the personal property was located. Frank J. Kelley Attorney General
[ Previous Page] [ Home Page ]