§ 150-46.3. Additional penalties for collection costs.

(a)

The taxing unit may contract with a private attorney for legal and other services related to the collection of delinquent taxes;

(b)

In addition to any other penalty prescribed by law, all delinquent taxes originally due January 1, 2002, and all delinquent taxes due prior to January 1, 2002, that remain delinquent on April 1 of the year in which they originally became delinquent, shall incur an additional penalty to defray costs of legal and other services related to the collection of delinquent taxes if the taxing unit has referred the collection of the delinquent taxes, penalty and interest to a private attorney or collection agent. The amount of the additional penalty shall be thirty percent of the amount of taxes, penalties and interest due;

(c)

In addition to any other penalty prescribed by law, all taxes which become delinquent after January 1, 2003, shall incur a penalty of ten percent of the amount of the taxes, penalties and interest due if any portion of the tax remains delinquent on March 1 of the year in which they originally became delinquent and the taxing unit has entered into an agreement pursuant to this section;

(d)

In addition to any other penalty prescribed by law, all taxes which become delinquent after January 1, 2003, and which remain delinquent May 1 of the year in which they originally become delinquent incur an additional penalty of 15 percent of the amount of the taxes, penalties and interest due if the taxing unit has entered into an agreement pursuant to this section;

(e)

The fee for services performed pursuant to the contract authorized under this subsection for legal and other services related to the collection of delinquent taxes originally due January 1, 2003, and thereafter shall be 20 percent of the taxes, penalties and interest due. The fee for services performed pursuant to the contract authorized under this subsection shall not be due and owing unless the tax payer has failed to remit the taxes and penalties due and owing prior to May 1 of the year in which they originally became delinquent. The fee for services performed pursuant the contract authorized under this subsection for legal and other services related to the collection of delinquent taxes originally due prior to January 1, 2003, shall be 30 percent of the tax, penalties and interest due; and

(e)

Any penalty or portion thereof imposed pursuant to this section shall be retained and used by the city to defray the cost of legal and other services related to the collection of delinquent taxes by a private attorney and shall not be distributed among any other taxing authority.

(M.C.S., Ord. No. 18637, § 1, 3-5-98; M.C.S., Ord. No. 20957, § 1, 12-19-02)