Summer Tax Resolution Reminder

RSC Section 1613 allows a school district or ISD to authorize 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 school currently has a summer tax levy and would like it to continue in 2024, your school’s board of education must adopt a resolution and file a copy of it with each city and township within your school’s boundaries on or before December 31, 2023.

The December 31 deadline is statutory. Each year, we receive calls from clients asking what they can do if the 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.

A suggested resolution form is attached to this newsletter. Do not use the attached resolution if your school is considering the implementation of a summer tax levy for the first time or changing the percentage of the summer tax collection.

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 school board action to effectuate a summer tax levy. School 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. Doing so would jeopardize the school’s ability to levy summer taxes that year.

A school that did not levy a summer tax in 2023 may institute a summer tax levy for 2024. Likewise, a school 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 2024. 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, 2023. To implement or modify a summer tax collection for 2024, please contact us and we will provide you with the required resolu­tions and forms.

The State of Michigan pays the collection costs for the State’s education tax (6 mills) if no other summer property tax is collected by the tax collecting unit (other than the State education tax and county taxes). If your school has a partial or full summer tax levy and the only other summer tax collection in your jurisdiction is the State’s education tax and county taxes, your school will be solely responsible for the applicable summer tax collection costs.