2003 SUMMER TAX BILLS
STATE EDUCATION TAX COLLECTION
As a service to residents, I would like to make you aware of a recent change in the property tax collection process, which will impact all future property tax bills. The State of Michigan passed Public Act 243 of 2002, which requires the State Education Tax (SET) on all property in the state to be collected on a summer property tax bill. As a result of this law, all taxpayers will be receiving a summer property tax bill every year starting in July 2003.
The SET is the 5-mill tax that was created in 1994 as part of Proposal A. The tax, while collected locally, is actually a state tax used to support all school systems in the state. For 2003 only, the tax rate will be reduced from 5-mills to 5-mills. In 2004, the rate will return to the usual 6-mill rate. While the SET will be paid in the summer, the early collection of the SET will not change the overall amount of property taxes paid each. Beginning in 2003, the SET will not be collected on the December winter bill s it has been in the past for Ann Arbor, Dexter and Whitmore Lake School Districts.
Summer tax bills are sent out on July 1 and the bill must be paid by September 14 in order to avoid any interest penalty.
Under MCL 211.51, property taxpayers may defer until February 15, without penalty or interest, the due date of their summer taxes on their homestead, if their household income for the preceding calendar year did not exceed $25,000 and they are:
a)62 years of age or older, including the unmarried surviving spouse of a person who was 62 years of age or older at the time of death;
b)A paraplegic or quadriplegic;
c)An eligible serviceperson, eligible veteran, or their eligible widow or widower;
d)A blind person; or
e)A totally and permanently disabled person.
Property that is classified or used as agricultural property may qualify if the gross receipts of the farming operation are not less than the household income of the owner.
Persons applying for a deferral must certify that they qualify for the deferment on a form available through my office in order to receive the deferral. The form must be completed each year in order to have taxes deferred without penalty in any given year. The form must be filed with my office by September 14 to receive the deferral.
I appreciate your understanding regarding this change in state law.
Cynthia L. Wilson
Northfield Township Treasurer
