Public Act 123 of 1999 shortens the amount of time property owners have to pay their delinquent taxes before losing their property. Property owners with taxes that are 23 months delinquent will be foreclosed and the property will be sold at public auction through the State of Michigan.
Property owners face higher interest and fees for not paying their taxes. Taxes that are more than one year old will have substantially higher interest (1.5% per month as opposed to the current 1%). After one year, taxes will also have a $175.00 forfeiture fee and additional administrative fees added to them.
Frequently Asked Questions (FAQs)
| Q. | If I don't pay my taxes, will I really lose my house and property? |
| A. | YES. Property owners who had
delinquent taxes under the old law could lose their property, but
they had more time to pay and more "second chances". Under
the new law, if your taxes are delinquent for approximately 23 months,
that's it. You've lost the property!!! |
| Q. | What is a delinquent tax? |
| A. | A delinquent tax is a tax that has been forwarded
to the county treasurer for collection on March 1st, of the year,
after it was due. For example, taxes that are billed by your city
or township treasurer in 2002 will be turned in to the county treasurer
delinquent on March 1, 2003. |
| Q. | What happens after the property is forwarded
to the county treasurer for collection? |
| A. | The county treasurer adds a 4% administration
fee and interest of 1% per month. After one year of delinquency,
the property is forfeited to the State of Michigan. For example,
the 2001 taxes that are still unpaid as of March 1st, 2003 will
be in forfeiture. |
| Q. | What does it mean for my property to be in
forfeiture? Does that mean I lose my property? |
| A. | No. Forfeiture is not foreclosure. If your
property is in forfeiture you still have a year before it will be
foreclosed. However, the interest and fees will be higher. When
a property is forfeited, the interest rate goes from 1% per month
to 1.5% per month, back to the date the taxes became delinquent.
A $175.00 fee and fees will also be added. |
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