ELIMINATE SUNSET ON AUTHORITY TO ENTER

TAX FORECLOSURE AVOIDANCE AGREEMENTS

House Bill 4121 as introduced

Sponsor:  Rep. Wendell Byrd

Committee:  Local Government and Municipal Finance

Complete to 3-13-19

SUMMARY:

House Bill 4121 would amend the General Property Tax Act to allow county treasurers to enter into tax foreclosure avoidance agreements after June 30, 2019.

The act currently allows county treasurers to enter into tax foreclosure avoidance agreements with the owners of property with delinquent taxes on them for a term of up to five years. The act puts a sunset (expiration date) on this authority, however, of                  June 30, 2019. The bill would eliminate this sunset, which would give county treasurers permanent authority to enter tax foreclosure avoidance agreements.

MCL 211.78q

FISCAL IMPACT:

Eliminating the sunset would allow local governments to potentially avoid foreclosures and collect existing property taxes. However, the fiscal impact on local governments and the state is likely to be relatively small.

                                                                                        Legislative Analyst:   Nick Kelly

                                                                                                Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations and does not constitute an official statement of legislative intent.