Legislation to eliminate sunset (expiration) dates for certain programs to assist residents avoid foreclosure due to delinquent property taxes received final approval by the Legislature. Senate Bill 423, sponsored by Sen. Stephanie Chang (D-Detroit), deletes the sunset dates on these provisions that currently exist. 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 a 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, and SB 423 eliminates the sunset date to allow the statutory provisions to remain in effect. The bill was sent to the governor for signature.
Michigan Townships Association
