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HB 5225

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT --THE PROTECTED SPACES ACT

2025 Regular Session Introduced by Edith Ajello and 9 co-sponsors

Expands summer property tax deferment to more homeowners and eligible agricultural property, deferring payments to Feb. 15 and using CPI-adjusted income limits.

04/09/2025 Committee postponed at request of sponsor (04/10/2025)
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Bill Summary · HB 5225

Summary — HB 5225 (2025): Property tax deferment eligibility; collection procedures (amends MCL 211.51)

Status & procedural history
- Introduced March 14, 2025 (Rep. Jason Hoskins). Electronically reproduced Nov 5, 2025; read a first time and referred to the Committee on Government Operations (current status: introduced).
- Amends section 51 of the General Property Tax Act (1893 PA 206), as amended by 2012 PA 57.

Purpose / intent
- Update and clarify eligibility, administration, and procedural rules for deferring summer property taxes for certain homeowners and agricultural property owners.
- Clarify county treasurer authority and revenue treatment when a township treasurer fails to file a bond or a township board fails to appoint a bonded treasurer.

Key provisions
1. County treasurer powers when township treasurer fails to bond
- If a township treasurer does not file the required bond and the township board fails to appoint a bonded treasurer by Dec. 10, the supervisor must deliver the tax roll and warrant to the county treasurer.
- The county treasurer — by county commission resolution — may exercise the same collection powers as a township treasurer (including adding property tax administration fees, late penalty charges, and interest).
- Excess administration fees (amounts above county collection costs) are returned to the township; remaining fees and any late penalty charges are credited to the county general fund.
- County treasurer is vested with township treasurer powers and subject to bond actions under the same conditions.

  1. Summer property tax deferment — eligible property and persons

    • Deferrable until the following February 15 for qualifying property:
      • Principal residence (exempt under section 7cc) of taxpayers who meet both age/disability/veteran criteria and household income limits.
      • Qualifying persons: totally/permanently disabled, blind, paraplegic, quadriplegic, eligible serviceperson/veteran, eligible widow/widower (as defined in the Income Tax Act of 1967), or age 62+ (including unremarried surviving spouse).
      • Income thresholds (based on the prior tax year):
        • Taxes levied before 1/1/2005: $25,000 or less
        • Taxes levied 1/1/2005–12/31/2005: $35,000 or less
        • Taxes levied 1/1/2006–12/31/2006: $37,500 or less
        • Taxes levied 1/1/2007–12/31/2026: $40,000 or less
        • Taxes levied after 12/31/2026: $60,000 or less, with adjustments every 5 years beginning Dec. 31, 2031 tied to the U.S. CPI (rounded to nearest $1,000).
      • Agricultural real property where gross receipts in the prior year (or 3‑year average) are not less than the owner's household income for the prior year. LLCs/partnerships may claim only if individual members/partners had previously qualified before forming the entity.

  2. Application, notices, and administration

    • Taxpayer must file an intent-to-defer form with the local tax collecting unit’s treasurer to defer summer taxes without penalty or interest.
    • Deferred taxes not paid by the following Feb. 15 are not subject to penalties or interest during the deferment period.
    • The Department of Treasury prescribes the intent form.
    • Local treasurers must publish notice of availability (newspaper or insert with bill) and assist taxpayers in completing forms.
    • A statement of the amount deferred must be included in the December tax statement (or mailed at the time December statements are required where no winter tax is collected).
    • Filing deadline to claim deferment: until September 15 or until the date the tax would otherwise become subject to interest/late penalty, whichever is later.

Who is affected
- Low‑ and moderate‑income seniors, disabled persons, qualifying veterans, and eligible agricultural property owners who pay summer property taxes.
- Township and county treasurers, township boards, county boards of commissioners (for resolution authority), and local tax collecting units (administration and notification duties).
- Counties and townships financially (timing of tax receipts, treatment of administration fees and penalty revenue).

Potential impacts
- Expands/updates income eligibility (notably a $60,000 threshold for post‑2026 levies and automatic CPI adjustments), likely increasing the number of taxpayers who can defer summer taxes.
- Shifts some immediate cash flow (payments deferred until Feb. 15) and places administrative responsibilities on local treasurers (notice, assistance, recordkeeping).
- Clarifies revenue sharing of administration fees between counties and townships when counties collect in lieu of a township treasurer.

Limitations / notes
- Deferral is a temporary postponement of payment to Feb. 15 (not an abatement). Taxes unpaid after that date may be subject to regular collection remedies.
- CPI adjustments begin in 2031 and occur every 5 years thereafter.

Compiled from official sources — confirm details with the bill’s official record.

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