Bill > SB0423

This bill modifies Michigan's property tax laws related to delinquent taxes, specifically addressing payment reduction and foreclosure avoidance programs for property owners. The bill extends existing provisions that allow county treasurers to create more flexible payment plans for property owners struggling to pay delinquent taxes, removing previous sunset dates that would have ended these programs. Key provisions include allowing county treasurers to create installment payment plans for financially distressed property owners and tax foreclosure avoidance agreements, particularly for residential properties classified as principal residences. The bill permits county treasurers to reduce the total amount of delinquent taxes owed, potentially reducing the amount to as low as 10% of the property's taxable value, and provides options to cancel interest, penalties, and fees under certain conditions. If property owners successfully complete these payment plans, they can avoid tax foreclosure, but failure to comply will result in the property being included in the next foreclosure petition. The bill also provides specific guidelines for how local governments can opt in or out of these payment reduction programs, with different rules for counties of different population sizes, and ensures that any payment reductions do not impermissibly impair county or local government outstanding debts.

Budget and Finance, Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0423