Sec. 86b.
(1) Notwithstanding section 86, a city that has a population of more than 600,000 may cause a demand to be made on a taxpayer for the payment of a tax due under this ordinance. However, the city's authority to cause a demand for payment under this section only applies to property owned by a natural person and wages, or other income, that are reported on a federal W-2 or 1099 form. If the liability remains unpaid for 10 days after the demand and proceedings are not taken to review the liability, a warrant may be issued. Except as provided in this section, the city, through any officer or agent or person authorized to serve process or through authorized employees, may levy on all property and rights to property, real and personal, tangible and intangible, belonging to the taxpayer or on which a lien is provided by law for the amount of the deficiency, and sell the real and personal property of the taxpayer found within the state for the payment of the amount due, the cost of executing the warrant, and the additional penalties and interest. Except as provided in subsection (6), the officer or agent or person serving the warrant shall proceed upon the warrant in all respects and in the same manner as prescribed by law in respect to executions issued against property upon judgments by a court of record. A city, through its authorized representative, may bid for and purchase any property sold pursuant to this section.
(2) A person that refuses or fails to surrender any property or rights to property subject to levy, upon demand by the city, is personally liable to the city in a sum equal to the value of the property or rights not surrendered, but not exceeding the amount due for which the levy was made, together with costs and interest on the sum at the rate provided in section 82 from the date of the levy. Any amount, other than costs, recovered under this subsection shall be credited against the liability for the collection of which the levy was made.
(3) In addition to the personal liability imposed by subsection (2), if a person required to surrender property or rights to property fails or refuses to surrender the property or rights to property without reasonable cause, the person shall be liable for a penalty equal to 50% of the amount recoverable under subsection (2), none of which penalty shall be credited against the liability for the collection of which the levy was made.
(4) A person in possession of, or obligated with respect to, property or property rights subject to levy and upon which a levy has been made who, upon demand of the city, surrenders the property or rights to property or discharges the obligation to the city or who pays a liability under subsection (1) shall have that obligation to a person delinquent in payment of a tax reduced in an amount equal to the property or rights to property surrendered or amounts paid to the city.
(5) Property described in section 6334 of the internal revenue code of 1986, 26 USC 6334, is exempt from levy under this section for an unpaid tax. The effect of a levy on salary or wages shall be continuous from the date the levy is first made until the liability out of which the levy arose is satisfied.
(6) A warrant notice of levy may be served by certified mail, return receipt requested, on any person in possession of, or obligated with respect to, property and rights to property, real and personal, tangible and intangible, belonging to the taxpayer or on which a lien is provided by law. The date of delivery on the receipt shall be the date the levy is made. A person may, upon written notice to the department, on behalf of the city, have all notices of levy sent to 1 designated office.
History: Add. 2018, Act 456, Imd. Eff. Dec. 21, 2018
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 284 of 1964 - City Income Tax Act (141.501 - 141.787)
284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699)
Section 141.601 - Uniform City Income Tax Ordinance; Short Title.
Section 141.602 - Uniform City Income Tax Ordinance; Rules of Construction, Definitions.
Section 141.603 - Definitions; a to D.
Section 141.604 - Definitions; C.
Section 141.605 - Definitions; D.
Section 141.606 - Definitions; E, F.
Section 141.607 - Definitions; F to N.
Section 141.608 - Definitions; N to P.
Section 141.609 - Definitions; R to T.
Section 141.611 - Excise Tax on Incomes; Rates.
Section 141.612 - Excise Tax on Incomes; Application to Resident Individuals.
Section 141.613 - Types of Nonresident Income to Which Tax Applicable; Extent and Basis of Tax.
Section 141.614 - Excise Tax on Incomes; Taxable Net Profits of a Corporation, Definition.
Section 141.616 - Unincorporated Business, Profession, or Activity; Return.
Section 141.617 - Unincorporated Business, Profession, or Activity; Election to Pay Tax.
Section 141.618 - Partial Business Activity in City; Apportionment of Net Profit.
Section 141.619 - Partial Business Activity in City; Separate Accounting Method.
Section 141.620 - Partial Business Activity in City; Business Allocation Percentage Method.
Section 141.622 - Partial Business Activity in City; Percentage of Compensation Paid Employees.
Section 141.623 - Partial Business Activity in City; Percentage of Gross Revenue.
Section 141.624 - Partial Business Activity in City; Business Allocation Percentage.
Section 141.625 - Partial Business Activity in City; Substitute Methods.
Section 141.626 - Capital Gains and Losses; Determination.
Section 141.627 - Estates or Trusts, Deemed Nonresidents; Definitions.
Section 141.628 - Income From Estates and Trusts.
Section 141.632 - Payments and Benefits Not Subject to Tax.
Section 141.633 - Deductible Expenses Generally.
Section 141.635 - Qualified Taxpayer Within Renaissance Zone; Determination of Deductions Claimed.
Section 141.640 - Extension for Filing Annual Return.
Section 141.641 - Annual Return; Joint Return.
Section 141.642 - Returns; Contents.
Section 141.644 - Federal Income Tax Return; Eliminations.
Section 141.645 - Net Profits; Consolidated Returns.
Section 141.646 - Amended Return; Change of Method of Accounting.
Section 141.652 - Tax Withheld; Payments or Persons Excepted.
Section 141.653 - Tax Withheld; Payment by Employee or Employer.
Section 141.657 - Tax Withheld; Withholding Tables; First Compensation Taxable.
Section 141.658 - Tax Withheld; Overwithheld Tax, Refund.
Section 141.659 - Tax Withheld; Correction of Error, Refund.
Section 141.660 - Tax Withheld; Payment by Employer; Return; Electronic Funds Transfer.
Section 141.662 - Declaration of Estimated Tax; Filing; Form; Time; Exceptions.
Section 141.663 - Declaration of Estimated Tax Not Withheld; Computation; Payment; Installments.
Section 141.664 - Annual Return; Filing; Extension of Time; Failure to File; Penalty.
Section 141.665 - Credit for City Income Tax Paid Another City.
Section 141.666 - Fractional Part of a Cent or Dollar.
Section 141.671 - Rules and Regulations; Adoption; Enforcement; Forms; Collection of Tax.
Section 141.672 - Special Ruling; Appeal to Income Tax Board of Review.
Section 141.674 - Information Confidential; Divulgence, Penalty, Discharge From Employment.
Section 141.680 - Waiver of Interest or Penalties During Extension.
Section 141.681 - Repealed. 1996, Act 478, Eff. Jan. 1, 1997.
Section 141.683 - Additional Tax Assessment; When Interest and Penalty Not Imposed.
Section 141.684 - Due and Unpaid Assessment; Determination; Procedure.
Section 141.685 - Final Assessment; Protest.
Section 141.686 - Failure to Pay Tax; Demand; Recovery; Prosecution.
Section 141.686a - Authority to Impose a Lien for Taxes.
Section 141.687 - Jeopardy Assessment; Procedure.
Section 141.688 - Statute of Limitations; Waiver; Payment of Tax.
Section 141.689 - Statute of Limitations; Refund.
Section 141.693 - Appeal to State Tax Commissioner or Tax Tribunal; Procedure.
Section 141.694 - Appeal to Court of Appeals or Supreme Court; Procedure.
Section 141.695 - Payment to Taxpayer From City General Fund or City Income Tax Trust Fund.