Public Act 123 has significantly changed the Michigan tax-reversion process. The new legislation establishes a three-year tax-reversion process compared to the former six-year process. Property owners with taxes that are three years delinquent will be foreclosed and the property will be sold at public auction. For example, owners who fail to pay their 2010 property taxes may lose the property to foreclosure in March 2013.
Property owners face higher interest and fees for not paying their taxes. Taxes that are delinquent for more than one year will have a substantially higher interest rate (1.5% per month, as opposed to the current 1%), and will have a $175 forfeiture fee plus additional administrative fees added.
Tax Reversion is the process by which delinquent property taxes are collected, or in lieu of collection, the process which governs the disposition of real and tangible personal property upon which property taxes remain unpaid. On July 22, 1999 Governor Engler signed into law significant changes to the Michigan Tax-Reversion process.
The Treasurer's objective is to assist delinquent taxpayers to fulfill their Real Property Tax obligation to avoid any foreclosure on any property the property owner wants to maintain.
The Treasurer will assist any taxpayer through the year. Applications for consideration will be available at the Treasurer's office. When site visits are conducted collectors will carry applications and distribute them when appropriate.