In 1999, a Michigan law, Public Act 123 (MCL 211.78) significantly shortened the time property owners have to pay their delinquent taxes before losing their property.
The new act reduces the amount of time to pay taxes from approximately 5 years to 2 years. Property owners with taxes that are 2 years delinquent will be foreclosed and the property can be sold at a public auction. Not paying taxes will now result in higher interest charges and fees.
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.
Timeline Chart Flyer
PUBLIC ACT 123 TIMELINE
- July/December 2014: 2014 property taxes billed by city, township or county treasurer.
- March 1, 2015: Unpaid 2014 property taxes are forwarded to county treasurer for collection.
State law requires a 4% administration fee and 1% per month interest.
- October 1, 2015: A $15 fee is added to each parcel.
- March 1, 2016: Property is forfeited to county treasurer. State law requires the addition
of a $175 fee and $30 in recording fees. Interest increased from 1% per month to 1.5% per month,
back to the date the taxes became delinquent.
- November 2016: Publication of forfeited properties subject to tax foreclosure on March 31st.
- March 1, 2017: Circuit Court enters a judgment of foreclosure. Property owners may redeem
their property by paying the taxes, interest, and fees by March 31st or lose their property.
- April 1, 2017: Property is foreclosed. Property owners lose all rights. Title to the property passes
to the county treasurer. Property owners that submitted an unsuccessful objection to being foreclosed have until April 18, 2017 to redeem.
- September & October 2017: Property is sold at public auction.
For further information regarding tax delinquencies call our tax information line at: (313) 224-5990.
If your property is delinquent and you need assistance, please call our Taxpayer Assistance Department at (313) 224-6105.