City of Detroit v. Walker

Mallett, J.

We granted leave in these consolidated cases to resolve two questions: (1) whether the 1974 Detroit City Charter incorporates by reference provisions of state statutory law, specifically the 1988 amendment of the General Property Tax Act, 1988 PA 202, MCL 211.47; MSA 7.91, that authorizes local governments to collect delinquent real property taxes by suing a taxpayer individually, and (2) assuming the city may utilize the in personam tax collection provisions contained in the General Property Tax Act to collect delinquent real property taxes, whether 1988 PA 202 may be retroactively applied.

We reverse the decision of the Court of Appeals and find that § 8-403 of the Detroit City Charter expressly incorporates by reference future powers and rights as may be granted by the Michigan *686Legislature. We further hold that state statutes that provide new procedures or methods for collecting unpaid real property taxes are retroactively applicable. Consequently, we remand this case to the trial court for proceedings consistent with this opinion.

i

This matter involves six consolidated tax collection suits initiated in 1989 by the plaintiff-appellant City of Detroit, to collect delinquent real property taxes owed by the defendants-appellees R. Terry Walker, Curtis Anderson, Superior Investment and Rental Corporation, Total Investment Company, Charles Smith, and Kenneth Al-mas, personally and as personal representative of the estate of Victor Almas.1 The City of Detroit attempted to collect the debts by filing in personam lawsuits against the delinquent taxpayers, a remedy authorized by a 1988 amendment of the General Property Tax Act.2

On motion by the delinquent taxpayers, the trial court granted summary judgment in their favor. The trial court accepted the defendants’ argument that pursuant to the holding in Joy Management Co v Detroit, 176 Mich App 722; 440 NW2d 654 (1989), the city was precluded by the provisions of the city charter from using any method of tax collection, other than the real property foreclosure method contained in art 8, § 8-403(6).3 A unani*687mous panel of the Court of Appeals affirmed.4 We thereafter granted leave to appeal.

n

At the turn of the. century, a Michigan city’s autonomy was inferior to a modern state agency. See Streat v Vermilya, 268 Mich 1; 255 NW 604 (1934). For example, state lawmakers had the power to select local officers. In addition, state lawmakers modified city charters and made organizational changes to city departments. This interference perpetually fueled public resentment.5

In 1908, constitutional convention delegates pro*688posed and the Michigan voters approved the following language:

The legislature shall provide by a general law for the incorporation of cities, and by a general law for the incorporation of villages; such general laws shall limit their rate of taxation for municipal purposes, and restrict their powers of borrowing money and contracting debts. [Const 1908, art 8, § 20.]
Under such general laws, the electors of each city and village shall have power and authority to frame, adopt and amend its charter and to amend an existing charter of the city or village heretofore granted or passed by the legislature for the government of the city or village and, through its regularly constituted authority, to pass all laws and ordinances relating to its municipal concerns, subject to the Constitution and general laws of this state. [Id., § 21.]

State lawmakers propelled by the Michigan Constitution and the power and authority conferred by it enacted the home rule cities act.6 The act, among other things, provides that each organized city shall be a body corporate and shall adopt mandatory charter provisions, and allows for other permissible charter provisions. The act also pro*689vides for the revision of existing city charters and the creation of a charter commission, and defines the powers and duties of such a commission.7

The home rule cities act, MCL 117.1 et seq.; MSA 5.2071 et seq., specifically directs the City of Detroit and other home rule cities to enact charters recognizing the power to levy taxes; limiting the subject of ad valorem taxation for municipal purposes to the same subject of state, county, and school purposes under the general law; and setting a maximum rate of taxes. MCL 117.3(f), (g); MSA 5.2073(f), (g). Moreover, home rule cities have power to make all reasonable provisions for the collection of these taxes. Detroit v Safety Investment Corp, 288 Mich 511, 515; 285 NW 42 (1939).

The Michigan Constitution provides that "[t]he provisions of this constitution and law concerning counties, townships, cities and villages shall be liberally construed in their favor.” Const 1963, art 7, § 34. It also provides that "[n]o enumeration of powers granted to cities and villages in this constitution shall limit or restrict the general grant of *690authority conferred by this section.” Const 1963, art 7, § 22.

Accordingly, it is clear that home rule cities enjoy not only those powers specifically granted, but they may also exercise all powers not expressly denied. Home rule cities are empowered to form for themselves a plan of government suited to their unique needs and, upon local matters, exercise the treasured right of self-governance. See Const 1963, art 7, § 22.8

Our municipal governance system has matured to one of general grant of rights and powers, subject only to certain enumerated restrictions instead of the earlier method of granting enumerated rights and powers definitely specified. The convention comment to the most recent amendment of the Michigan Constitution announces best the current relationship between municipalities and the state. It provides that "a revision of Sec 21, Article VIII, of the present [1908] constitution refects Michigan’s successful experience with home rule.”

Against this backdrop, we go forward.

hi

The matter before us requires the construction *691of a home rule city charter. The prevailing rules regarding statutory construction are well established and extend to the construction of home rule charters. Brady v Detroit, 353 Mich 243, 248; 91 NW2d 257 (1958). Therefore, we are required to construe the charter’s language by its commonly accepted meaning as long as it does not produce absurdity, hardship, injustice, or prejudice to the drafters and ratifiers. Reisman v Regents of Wayne State Univ, 188 Mich App 526, 536; 470 NW2d 678 (1991).

Here, we must determine whether § 8-403(1) of the Detroit City Charter incorporates by reference the provisions of state law, specifically the 1988 amendment of the General Property Tax Act that allows local governments to collect delinquent real property taxes by suing the taxpayer personally.

The Detroit City Charter, in its general powers section, directs that the specific mention of particular powers in the charter shall not be construed as a limitation of the powers of the city conferred by the constitution and state law, and that the powers of the city under the charter shall be construed liberally in favor of the city.9 Moreover, several sections of the 1974 Detroit City Charter *692incorporate by reference provisions of state law.10 Nonetheless, in Joy Management v Detroit, supra at 733, the Court of Appeals held that art 8, § 8-403 of the Detroit City Charter only authorized a single means of collecting delinquent real property taxes.11

In Joy Management, the City of Detroit attempted to settle delinquent real property taxes by seizing fire insurance proceeds. The circuit court ruled that statutory law then in effect precluded seizure of insurance proceeds as intangibles.12 The Court of Appeals affirmed and went several steps further to conclude that the city’s charter afforded merely one remedy for collecting unpaid real property taxes:

Defendant’s charter limits defendant’s remedy *693to an action for foreclosure on the tax lien. Section 8-403 of the Detroit City Code provides that the city may bring a civil action to foreclose its lien two years after the city’s lien on real property for delinquent city real property taxes accrues. The city’s charter does not provide any other method for the city to collect delinquent real property taxes. Even if § 47 [MCL 211.47; MSA 7.91] were to allow the city treasurer to place a lien on insurance proceeds, defendant’s own charter does not authorize it to do so. The General Property Tax Act does not apply to cities whose charters provide inconsistent provisions. MCL 211.107; MSA 7.161. [Id. at 733-734.]

In the case before us, the Court of Appeals similarly held that the city’s sole means of collecting delinquent real property taxes was by lien and foreclosure. Defendants argue that the Detroit City Charter’s article 8, before its 1991 amendment, expressly provided that the sole remedy available to the City of Detroit to collect unpaid real property taxes was the lien foreclosure remedy. We do not agree.

When the Detroit City Charter was adopted in 1974, the 1893 General Property Tax Act mentioned two methods to enforce and collect delinquent real property taxes. One was the lien foreclosure procedure set forth in MCL 211.61; MSA 7.10513 and the other was the seizure and sale of *694the taxpayer’s personal property as set forth in MCL 211.47; MSA 7.91.14 Therefore, at the time of the 1974 enactment, § 8-403(1) incorporated by reference the collection provisions of MCL 211.47; MSA 7.91 (seizure and sale of personal property) and the lien foreclosure method of MCL 211.61 et seq.; MSA 7.105 et seq., "[e]xcept as otherwise provided by [the] charter . . . .”15

The Detroit City Charter language contained in art 8, § 8-403 is plain and unambiguous. The charter declares that state law regarding property tax collection applies unless the charter provides otherwise.16 Therefore, in order to embrace defendants’ positions, we would have to find that the City of Detroit deliberately precluded itself from exercising the broad powers granted by our Michigan Constitution.

Defendants suggest that the express inclusion of one procedure manifests exclusion of all others, *695and that that should be the reason why the city foreclosure method must be construed as being the sole remedy available to the city. Their arguments, however, fail because they ignore the language of the city charter and its instructive commentaries. The 1974 Charter Comments purposefully provide:

Subsection 8-403(1) incorporates by reference the provisions of state law for the collection and enforcement of property taxes. As a result, it has been possible to eliminate 14 pages of procedural detail contained in chapter 4 of title 6 of the present charter.
With respect to subsection 8-403(2), state law provides "all taxes shall become a debt due to the . . . city” on December 31st. See CL 1948 211.81, 211.2 and 211.13.
In two important respects, however, Detroit’s law and procedure is different from, and preferable to, the law and procedure of the state.
First, there is no counterpart in state law for the right granted Detroit property taxpayers to pay in 2 installments. Second, state law permits the sale of liens for delinquent property taxes to private tax title speculators, often to the great prejudice of the owner whose taxes are delinquent. Because of the abuses that can result, the Detroit treasurer, for some years, has not sold to private persons the City’s lien for delinquent City real property taxes but has collected those delinquent taxes himself.
Detroit’s current practice on both these matters is retained in the new charter. [Final Report of the Detroit Charter Revision Comm, Commentary to Art 8, § 8-403, p 37. Emphasis added.]

Moreover, defendants direct the Court to Fink v Detroit, 124 Mich App 44; 333 NW2d 376 (1983), for the holding that a city charter takes priority over the General Property Tax Act. In Fink, the Court noted that the General Property Tax Act *696applies only where it is consistent with respect to the charter provision involved. However, defendants’ reliance on Fink is clearly misplaced because the charter differs only with regard to the state’s exhausting foreclosure sale procedure.

Defendants further highlight Fink, for a semantic discourse on "shall” versus "may” as contained in § 8-403(6).17 The defendants state with conviction:

In examining the context of that term as used in the Charter, it is clear that the word "may” means "shall.” The Charter does not contain any other option for bringing an action to recover unpaid taxes. If any other action was available, it would have been specifically included in the original Charter. In this context, the word "may” was used to authorize the City to bring a civil action to foreclose upon its lien, as opposed to taking no action at all to foreclose. That was the option available to the City at the time.

Defendants have engaged in a semantic war. However, such a battle is futile when the drafters’ and ratifiers’ intent is clear as it is here. The comments suggest no intention to exclude from the incorporation by reference of state law any provision for the collection of taxes other than portions of the lien foreclosure procedure of state law.18

Assuming arguendo, that the city charter in effect failed at the time the actions were filed to incorporate by reference the additional tax collection remedy, the city attempted to stop the hemorrhaging arguably caused by the loss of tax reve*697nue resulting from the Joy Management decision and other delinquent taxpayers like the defendants. Consequently, in 1991, the Detroit City Charter was amended to allow the city to maintain a personal action against a delinquent real property taxpayer.19

It is well settled by this Court that when an amendment is enacted soon after controversies arise regarding the meaning of the original act, " 'it is logical to regard the amendment as a legislative interpretation of the original act ....”’ Detroit Edison Co v Revenue Dep’t, 320 Mich 506, 519-521; 31 NW2d 809 (1948), quoting 1 Sutherland, Statutory Construction (3d ed), § 1931, p 418. See also People v Khoury, 437 Mich 954; 467 NW2d 810 (1991); Detroit Edison Co v Janosz, 350 Mich 606, 613-614; 87 NW2d 126 (1957). In our case, the amendment of the Detroit City Charter clarifies what the drafters’ and ratifiers’ intent had been all along.

The Court of Appeals in the case at bar and Joy Management20 was incorrect in its rulings. Each panel failed to give effect to the drafters’ and ratifiers’ intent. Each disregarded the express provisions that permit incorporation by reference, such as § 8-403(1). Moreover, the decisions ren*698dered nugatory other provisions of the Detroit City Charter.21

The general powers of a home rule city as expressed by §§ 1-102 and 1-103 of the Detroit City Charter naturally adopt future amendments.22 Moreover, the charter is the organic law of the City of Detroit, and, absent a clear declaration by its citizens to preclude provided by state law, we find that the 1974 Detroit City Charter incorporates by reference the tax collection remedies afforded by the General Property Tax Act and all future amendments of the act, including 1988 PA 202, MCL 211.47; MSA 7.91.23

iv

A

Defendants argue in the alternative that it is impermissible to retroactively apply 1988 PA 202 because the amendment creates a new right for plaintiff and creates a new liability for the defendants, i.e., personal liability for real property taxes where they did not exist before. The concern regarding the retroactivity of statutes arises from constitutional due process principles that prevent retrospective laws from divesting rights to property or vested rights, or the impairment of contracts. See, e.g., US Const, art I, § 10; Const 1963, art 1, § 10. See also Hansen-Snyder Co v General Motors Corp, 371 Mich 480; 124 NW2d 286 (1963); *699Stott v Stott Realty Co, 288 Mich 35; 284 NW 635 (1939).

In the case before us, defendants do not claim that the retroactive application of 1988 PA 202 injuriously affects any contractual obligations. Therefore, we assume that defendants allege that the retroactive application of this statutory amendment adversely affects some vested right. We do not agree.

1. VESTED RIGHT

A vested right has been defined as an interest that the government is compelled to recognize and protect of which the holder could not be deprived without injustice. Cusick v Feldpausch, 259 Mich 349, 352; 243 NW 226 (1932), citing 2 Cooley, Constitutional Limitations (8th ed), p 749. Nonetheless, when determining whether a right is vested, policy considerations, rather than inflexible definitions must control, and we must consider whether the holder possesses what amounts to be a title interest in the right asserted. We explained in Minty v Bd of State Auditors, 336 Mich 370, 390; 58 NW2d 106 (1953):

"It would seem that a right cannot be considered a vested right, unless it is something more than such a mere expectation as may be based upon an anticipated continuance of the present general laws; it must have become a title, legal or equitable, to the present or future enjoyment of property, or to the present or future enforcement of a demand, or a legal exemption from a demand made by another.”

See also Wylie v Grand Rapids City Comm, 293 Mich 571, 587; 292 NW 668 (1940).

In the case at bar, defendants suggest that the *700new enforcement procedure creates a new liability and therefore infringes on a right deserving protection. As we articulated in Minty, the holder must have more than an expectation that the tax collection procedures would remain unchanged. Here, defendants would have us include within the realm of vested rights immunity from the retroactive operation of a tax collection procedure implemented to secure delinquent taxes owed to a municipality where there is no question that the amendment is not expanding the defendant’s preexisting indebtedness. We refuse to do so.

The underlying concern is that allowing in personam actions may affect the character of the remedy or the character of the tax. In this case, allowing an in personam action does not change the character of the tax because the amount of the tax itself has not been altered. The taxes assessed against defendants’ property were never forgiven and then reinstated as a result of the new enforcement procedure. Quite the opposite. They are debts defendants elected not to pay. Thus, its character as a property tax has never been affected.24

*701Today, as we have in the past, we refuse to make delinquent taxpayers immune from the imposition of statutory obligations. It is instructive to revisit our decision in Detroit v Safety Investment, supra, p 516, in which we discussed what tax collection was like before and after the enactment of the General Property Tax Act, 1893 PA 206, MCL 211.1 et seq.; MSA 7.1 et seq. We said:

"Under the old law, the prudent and honest men paid their taxes; the careless and dishonest did not. Under that system the prudent and honorable men paid more than their fair share of the public burdens. [The General Property Tax Acf\ was aimed to cure this evil, and should be liberally construed.” [288 Mich 516. Citation omitted; emphasis added.]

Property tax collection is essential to the eco*702nomic security and social stability of Detroit and other municipalities, as well as the state. As a matter of policy, it is imperative that taxpayers do not hide behind the facade of vested rights in an attempt to evade their financial responsibilities. As explained by one commentator:

Traditionally, the property tax — and in particular, the tax on real property — has been the mainstay of municipal revenue-gathering — the largest single source of municipal revenue. . . . But the property tax has numerous advantages that may keep it in use to a considerable extent: (1) Property, especially real property, is directly benefited by many municipal services, such as fire protection and garbage collection. Thus, there is a certain fairness in assessing the costs of these services on the basis of the value of property benefited thereby. (2) It is fairly easy to forecast in advance the amount of revenue that the real-property tax in a particular locality will produce, thus facilitating the budget process. (3) The real-property tax is not likely to be used by the federal government; it is thus one of the few potential sources of municipal income that is untapped by the U.S. government. And the full potential of the real-property tax has not been realized, since much urban property is assessed, and thus taxed, at substantially less than its current fair-market value. [Reynolds, Local Government Law, § 96, pp 291-293.]

Recently, in Taxpayers United v Detroit, 196 Mich App 463, 466; 493 NW2d 463 (1992), a Court of Appeals panel held that the retroactive revival of Detroit utility users tax is constitutional because the 1990 law did not create a novel tax. Plaintiffs were not assessed a retroactive fee for engaging in a voluntary act they might have forgone had they been aware of the tax. Id. at 468. The panel reasoned that the 1990 law did not violate the Due Process Clauses of the United *703States or Michigan Constitutions because it applied the same type and rate of tax to the same group of taxpayers.

Similarly, the tax collection method in the case before us is not a novel tax because it does not enlarge the preexisting tax debt. On the contrary, 1988 PA 202 is a procedural device to secure taxes owed. Defendants are not being taxed as a result of voluntary activities that they might have forgone had they been aware of the tax. Rather, had defendants elected to forgo the activities at issue in this case, namely, their refusal to pay property taxes, they would have ended up in exactly the same situation in which they now find themselves —in short, paying their taxes.25

It is firmly established that there is no vested right in any particular procedure or remedy. See Hanes & Co v Wadey, 73 Mich 178, 181; 41 NW 222 (1889). Moreover, it is also well established that a taxpayer does not have a vested right in a tax statute or in the continuance of any tax law. Ludka v Treasury Dep't 155 Mich App 250; 399 NW2d 490 (1986). See 6 Michigan Law & Practice, Constitutional Law, §223, pp 248-249; 16A CJS, Constitutional Law, § 246, pp 49-52.

For instance, in Webster v Auditor General, 121 Mich 668; 80 NW 705 (1899), a provision of the General Property Tax Act of 1893 regarding the assessment, levy, and the return of land for delinquent taxes was amended. The dispute involved the retroactive operation of the interest added to delinquent taxes. The Court noted that a landowner has a duty to pay taxes and to pay them when they become due. The interest imposed on delinquent taxes serves multiple purposes, one of which is to encourage the timely payment of prop*704erty taxes. Consequently, the Court held that one who owes delinquent taxes has no vested right to have the rate of interest thereon remain unchanged. Id. at 674.

In this action, 1988 PA 202 did not create, enlarge, diminish, or destroy contractual or vested rights. Rather, it implemented an additional enforcement mechanism that the city may use to effect its preexisting constitutional and statutory right to assess and collect city property taxes. Furthermore, because the procedure relates only to tax collection remedies or procedures, it does not fall within the general rule against retrospective operation:

The constitutional prohibition of the passage of retroactive laws refers only to retroactive laws that injuriously affect some substantial or vested right, and "does not refer to those remedies adopted by a legislative body for the purpose of providing a rule to secure for its citizens the enjoyment of some natural right, equitable and just in itself, but which they were not able to enforce on account of defects in the law or its omission to provide the relief necessary to secure such right.” [Stott at 46.]

In Hansen-Snyder, this Court observed:

[Amendments of] statutes related to remedies or modes of procedure, which do not create new or take away vested rights, but only operate in furtherance of a remedy or confirmation of rights already existing, do not come within the legal conception of retrospective law, or the general rule against retrospective operation of statutes. [Id. at 485.]

In fact, statutes or amendments that relate only to procedure, prima facie apply to all actions that *705have accrued as well as future actions, unless the amendment expressly provides otherwise. Stott, supra at 46. We acknowledge that generally the distinction between remedial procedures and the impairment of vested rights is difficult to draw. However, it is clear that defendants have no property or title interest in our state or local tax collection methods. A vested right may encompass many things, but this is not one of them.

Finally, although it is remedial, the retroactive reach of 1988 PA 202 has statutory limitations. MCL 600.5813; MSA 27A.5813 provides that personal actions not otherwise provided for are subject to a six-year limitation period. An in personam suit to collect real property taxes is clearly a personal action. See Borden, Inc v Treasury Dep’t, 391 Mich 495; 218 NW2d 667 (1974). Because an in personam suit to collect delinquent real property taxes becomes a personal action, we also find that the general six-year limitation statute applies. In re Atkinson Estate, 305 Mich 323; 9 NW2d 588 (1943).

CONCLUSION

Our decision today affirms the integrity of not only the City of Detroit’s charter, but Michigan statutory law as well. We find that the Detroit City Charter incorporates the General Property Tax Act, and hold that the amendment of MCL 211.47; MSA 7.91 is remedial and may be retroactively applied. Noting the restraint imposed by MCL 600.5813; MSA 27A.5813, we remand this case to the trial court for proceedings consistent with this opinion.

Cavanagh, C.J., and Brickley and Boyle, JJ., concurred with Mallett, J.

The only appellees before us are Walker, Anderson, and Almas. Superior Investment and Rental Corporation and Charles Smith elected not to appear at the appellate level. Total Investment Company settled with the city.

See 1988 PA 202, MCL 211.47; MSA 7.91.

In relevant part, before its 1991 amendment, § 8-403, Collection of property taxes, of the Detroit City Charter, provided as follows:

*6871. Except as otherwise provided by this charter or ordinance, the rights, duties, powers, immunities and procedures established by state law shall apply in the collection and enforcement of City property taxes.
6. Two years after such a sale of the lien on any real property, the City may bring a civil action to foreclose its lien.
If the City prevails in the action, the judgment, which may not be entered before 120 days have expired from the filing of the complaint, shall provide that possession of the real property to which the lien attached shall be given to the City, unless the judgment and all costs are paid within 60 days. There shall be no redemption period under the judgment beyond the 60 days. The judgment when final shall be conclusive evidence of the City’s title in fee simple, subject only to unextinguished interests or encumbrances. [Emphasis added.]

It is important to note that the charter has no express limitation that the lien foreclosure method is the solitary remedy afforded the city.

Unpublished opinion per curiam of the Court of Appeals, issued January 21, 1993 (Docket Nos. 129624-129629).

In Marxer v Saginaw, 270 Mich 256, 258-259; 258 NW 627 (1935), we provide a comprehensive discussion about the relationship between municipalities and early state lawmakers.

Some of them had charters before the organization of the Michigan territorial government. It is unnecessary to consider their common-law origins. They probably arose out of the necessity of having local officers to care for local governmental functions peculiar to the locality which could be better cared for by local officers than by central authority. They are local governmental organizations deriving their power and authority *688from the State, organized for the purpose of carrying on local municipal government. City officers locally elected in many cases perform State functions as well as local governmental functions. In the absence of constitutional provision and restriction, matters of local municipal concern in cities may be determined by the citizens themselves. They were, in this State, for many years, looked after by the legislature. [Emphasis added.]

Amended by 1911 PA 203, effective August 1, 1911; 1913 PA 5, immediately effective March 11, 1913; 1973 PA 81, § 1, immediately effective July 31, 1973; 1981 PA 175, § 1, immediately effective December 14, 1981; 1986 PA 64, § 1, immediately effective March 31, 1986.

In Streat v Vermilya, supra at 4, we explained the genesis of the home rule act:

Public sentiment demanded uniformity in powers and duties in cities and villages, thus making possible unified judicial construction, and, it was claimed, a consequent saving of expense. In 1895, a uniform village charter act (Act No. 3, Pub. Acts 1895, 1 Comp. Laws 1929, § 1465 et seq.) was adopted by the legislature and a uniform city charter act (Act No. 215, Pub. Acts 1895, 1 Comp. Laws 1929, § 1796 et seq.), providing for the incorporation of cities of the fourth class. The people were not satisfied with the results attained under the so-called uniform charter provisions, and in the constitutional convention of 1908 home rule was demanded, that is, the right of cities to frame and adopt their own charters. The constitutional convention compromised between these two ideas by giving cities the right to frame, adopt and amend their charters, subject, however, to certain broad general restrictions and limitations fixed by the legislature in the so-called home rule act.

Under general laws the electors of each city and village shall have the power and authority to frame, adopt and amend its charter, and to amend an existing charter of the city . . . heretofore granted or enacted by the legislature for the government of the city or village. Each such city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law. No enumeration of powers granted to cities and villages in this constitution shall limit or restrict the general grant of authority conferred by this section. [Emphasis supplied.]

Section 1-102 provides:

The city has the comprehensive home rule power conferred upon it by the Michigan Constitution, subject only to the limitations on the exercise of that power contained in the Constitution or this Charter or imposed by statute. The city also has all other powers which a city may possess under the Constitution and laws of this state. [Emphasis added.]

Section 1-103 provides:

The powers of the city under this Charter shall be construed liberally in favor of the city. The specific mention of particular powers in the Charter shall not be construed as limiting in any way the general power stated in this article. [Emphasis added.]

For example, the elections article, § 3-104, and its commentary provides as follows:

Except as otherwise provided by this charter or ordinance, state law applies to the qualiñcations and registration of voters, the ñling for ofhce by candidates, and the conduct and canvass of City elections.
COMMENTARY
This section incorporates by reference the provisions of the Michigan general election law, making them applicable to City elections (as nearly as possible) except where specific contrary provisions are contained in the new charter or in ordinance. [Final Report of the Detroit Charter Revision Comm, Commentary to § 3-104, p 6. Emphasis added.]

The City of Detroit appealed this adverse ruling; however, we denied leave. 433 Mich 860 (1989). It is important to emphasize that in Michigan, denial of leave has no substantive effect on a particular case.

We also note that this case was decided before MCL 211.47; MSA 7.91. The most recent amendments clearly permit a city treasurer to seize personal property for sale, and allow the city to bring an in personam action on a debt to collect taxes. Furthermore, we have no comment regarding this portion of the Court of Appeals decision.

Under MCL 211.61 et seq.; MSA 7.105 et seq., "the state treasurer [was] required to file a petition in the circuit court for the county where the assessed real property [was] located, for entry of a court decree directing that the property be sold by the county treasurer at the annual county tax sale. . . . After notice, hearing, and entry of the decree, the county treasurer [was] authorized to accept bids by private individuals, as well as the state, and [was] required to issue to the successful bidder a certificate stating that the bidder, or purchaser, [would] be entitled to a deed after the expiration of the one year period of redemption from sale afforded the owner under MCL 211.74; MSA 7.120. After the deed [was] issued at the end of the one year redemption period, a notice of the right to redeem, or notice of *694reconveyance, signed by the purchaser, [was required to] be served, which entitle[d] the owner to redeem within an additional six month period, upon payment of all delinquencies and 50% in addition. MCL 211.140; MSA 7.198.”

The plaintiff notes:

In 1987, the Michigan Legislature amended the General Property Tax Act, MCL 211.47; MSA 7.91, to provide that city and township treasurers could institute an in personam action to collect "any” delinquent taxes on personal property owed by individual or corporate tax payers, regardless of whether the treasurer had attempted to seize personal property for sale at public auction. [1987 PA 177.] Prior to the passage of the amendment, the General Property Tax Act required treasurers to first exhaust seizure procedures before filing a lawsuit for delinquent personal property taxes.
In 1988 PA 202, the Legislature further amended the Act to provide that the city and township treasurers could institute an in personam action for any delinquent property tax, regardless of whether the treasurer had attempted seizure of property for sale at public auction.

See n 10.

See n 3.

See n 3.

Thus, it is clear that the drafters intended to adopt a different and better procedure for realty tax lien foreclosure different in part from the tax lien foreclosure procedure set forth in the General Property Tax Act, MCL 211.61 et seq.; MSA 7.105 et seq.

On June 4, 1991, the citizens of Detroit amended § 8-403 and added the following subsection 7:

In addition to the other remedies specified in this section, at the time unpaid city property taxes become delinquent or at any later time permitted by law, the city may maintain personal action against the debtor for collection of the unpaid property taxes and may use any means permitted by law for collection of the debt. The city of Detroit tax roll shall be prima facie evidence of the amount of the indebtedness to the city of Detroit. The preceding sections of 8-403 are not the exclusive remedies of the city of Detroit.

Our ruling today only overturns the decision regarding the city’s incorporation by reference language.

A home rule city may implement collection procedures not delineated in the General Property Tax Act, subject to Michigan’s Constitution and laws. See n 8.

See n 9.

Assuming arguendo, that an ambiguity exists with regard to whether the charter incorporates the General Property Tax Act, the ambiguity must be resolved in favor of the city. See Const 1963, art 7, § 34; charter, art 1, § 1-103.

Upon initial review, there appears to be precedent supporting a finding that a tax assessment against land alone may not be retroactively transformed into a personal obligation of the taxpayer. See Grand Rapids v Lake Shore & M S R Co, 130 Mich 238; 89 NW 932 (1902), and Weber v Detroit, 158 Mich 149; 122 NW 570 (1909). However, those cases are easily distinguishable from the case before us. Both are the progeny of Mogg v Hall, 83 Mich 576; 47 NW 553 (1890). In Mogg, certain parcels owned by the plaintiff had been assessed. The Duplain Township treasurer in 1884 sought to recover delinquent taxes for drain assessments. At the time, the drain law of 1881 was in effect and did not contain any provision "making the drain tax a personal claim against the owner of land,” but instead declared a failure to pay taxes due to constitute a lien on the land, and provided for a sale of the land in case of nonpayment. Id. at 580. To eliminate any doubt, the Court noted that the 1885 drain law expressly stated that an in personam action to collect taxes was permissible, thereby curing a defect in the 1881 act.

Similar to Mogg, in Grand Rapids and Weber, personal liability was attached to the taxpayer after the taxes had been assessed. At the time of Grand Rapids, Weber, and Mogg, neither the pertinent tax *701law nor the charter regarding the assessments under review authorized in personam actions or stated that personal liability attached.

Moreover, any reliance on those cases is tenuous at best, because each case lacked a substantive analysis of why a tax on land cannot be transformed into a personal obligation. Nevertheless, the law has come a long way since Mogg, and today, personal liability attaches the moment taxes are assessed. In Gilken Corp v Comm’r of Internal Revenue, 176 F2d 141, 143-144 (CA 6, 1949), the United States Court of Appeals for the Sixth Circuit decided that, under Michigan law, the real and personal property taxes assessed before the taxpayer acquired title or possession were the personal liability of the taxpayer’s vendor. The court looked to the Detroit City Charter, § 8-403(2) " 'all city taxes shall become a debt’ ” language and stated:

We cannot accept as valid the argument of petitioner that Michigan realty taxes are exclusively in rem and that there is no personal liability for them. We think the contrary to be true. [See] Gulf Refining Co v Perry, 303 Mich 487, 490; 6 NW2d 756 (1942).

In Gulf Refining, we stated that despite the defendant having had a mortgage foreclosed, and the mortgagee’s title, having subsequently become absolute: "The tax assessment against defendants Perry [concerning real property] was a debt due from them to the city of Lansing. Perry’s personal property was subject to seizure and sale for the amount of the tax.” Id. at 490 (emphasis added).

In other words, they pay their taxes, either voluntarily or by being subject to an in personam collection action.