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On the June 25 Chelsea City Council agenda: administrative, delinquent tax fees

Chelsea logoThe Chelsea City Council has 10 items on its council business agenda for its meeting on Tuesday, June 25, including approvals for a property tax administration fee, and two late charge penalty fees for delinquent taxes.

First collected in 2005 and each year since, the City Council is expected to consider a request from the city treasurer to collect a 1-percent property tax administration fee to offset the cost of collecting, assessing and the review and appeal process of taxes, according to an explanation of the agenda item.

According to the state law, “The Michigan Property Tax Act (MCL 211.44) authorizes local property tax collecting units to collect an administrative fee to offset costs incurred by the collecting unit in assessing property values, in collecting the property tax levies, and in the review and appeal processes… .”

The amount is set at “not more than 1 percent of the total tax bill per parcel,” and a resolution authorizing the fee must be approved by the City Council each year if it is to be imposed.

Terri Royal, the city treasurer, also has a resolution on the agenda to impose a 3-percent penalty on delinquent payments of real and personal property taxes.

Summer tax bills go out on July 1 and the taxes are due by Sept. 16.

This penalty compensates the city for lost interest revenue on taxes that are not paid on time, and also requires City Council approval to be imposed.

In addition, the treasurer has a third resolution on the agenda that, if approved, “would impose a 1 percent per month interest charge on the delinquent real and personal property taxes. This resolution would allow the treasurer to add a 1 percent interest charge each month for summer taxes that are not paid by Sept. 16. The interest would be added beginning Sept. 17 and each month thereafter as long as the taxes have not been paid, according to the agenda item.

Also among the agenda items are budget transfers and approval of dates for two work sessions — one for a joint meeting with the city Planning Commission on Tuesday, July 2 and the second a work session with the Lima Township Board to discuss a pending development in the township on Tuesday, July 9.



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