Taxation: specific tax; application of tax reverted property specific tax to certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends secs. 4 & 5 of 2003 PA 260 (MCL 211.1024 & 211.1025). TIE BAR WITH: SB 484'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill modifies the "Tax Reverted Clean Title Act" to address how property taxes are handled when foreclosing governmental units sell or transfer tax-reverted property. It requires these units and assessors to share information about sold property, and establishes a specific tax, called the ‘eligible tax reverted property specific tax,’ on owners of such property. The tax revenue is distributed between the state and local units, with a portion directed to the state school aid fund instead of local school districts.
Key provisions
- Local tax collecting units must provide lists of sold tax-reverted property to assessors.
- A specific tax, the ‘eligible tax reverted property specific tax,’ is levied on owners of tax-reverted property.
- The amount of the tax is based on the tax that would have been paid if the property were not exempt.
- Tax revenue is split between the state and local units, with a portion going to the state school aid fund.
- Property located in renaissance zones is exempt from this tax.
- The tax becomes a lien on the property when regular property taxes become a lien.
- Unpaid taxes can lead to forfeiture and foreclosure.
- The bill’s implementation is tied to Senate Bill 484.
Who is affected
- Local tax collecting units
- Foreclosing governmental units
- Property owners
- Assessors
- School districts
Notable changes
Bill text
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- Senate Introduced Bill
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