Summer Tax Resolution Reminder

Revised School Code Section 1613 allows a school district or ISD to direct local taxing jurisdictions to levy half or all school taxes on July 1 by filing a summer tax resolution with the local taxing jurisdictions. If your district currently has a summer tax levy and would like it to continue in 2022, your board of education must adopt a resolution and file a copy of that resolution with each city and township within the district’s boundaries on or before December 31, 2021.

Please note that the December 31 deadline is statutory. Each year, we receive calls from clients ask­ing what to do if that deadline is missed. Unfortunately, the answer is “nothing.” Failing to adopt and file a sum­mer tax resolution by December 31 means that all school taxes for the subsequent year must be levied in December.

Section 1613 states that a “[summer tax] resolution by its terms may be applicable until revoked by the board.” Although this language suggests that a school board does not need to adopt and file a summer tax res­olution each year, the Michigan Court of Appeals has held that Section 1613 requires annual board action to implement a summer tax levy. District officials should not rely on language in a summer tax resolution stating that it is effective “until specifically revoked by the Board” to bypass the required annual summer tax resolution process.

A district that did not levy a summer tax in 2021 may institute a summer tax levy for 2022. Likewise, a district that previously authorized a 50% summer tax collection and wants to increase to a 100% summer tax collection (or vice versa) may make that modification for 2022. To authorize a summer tax levy for the first time, or to modify the collection percentage, the board must adopt a different resolution at a properly noticed public meeting by December 31, 2021.

To continue, implement, or modify a summer tax collection for 2022, please contact Thrun Law Firm, and we will provide you with the required forms.