Legislation to allow for payment reduction measures and foreclosure avoidance agreements on eligible property with delinquent property taxes to continue was approved by the Senate Committee on Finance, Insurance and Consumer Protection. Senate Bill 423, sponsored by Sen. Stephanie Chang (D-Detroit), would delete the sunset dates on these provisions in the General Property Tax Act. Under the act, on March 1 in each tax year, property delinquent for taxes, interest, penalties and fees for the preceding 12 months or more is forfeited to the county treasurer for the total amount of those unpaid delinquent taxes, interest, penalties and fees. A local government may withhold property from the delinquency process under certain circumstances, including cases of substantial financial hardship. For such cases, a foreclosing government may grant a delinquent property tax payment reduction, create a delinquent property tax installment payment plan or a tax foreclosure avoidance agreement, or enact some combination of these options. For a delinquent property payment reduction, a participating local governmental unit may reduce delinquent taxes to specified percentages, cancel some or all taxes that represented charges for services that became delinquent, and cancel all interest penalties and fees required under the act. The current provision expired July 1, 2025; SB 423 deletes the sunset date. SB 423 moves to the full Senate for action.
Michigan Townships Association
