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HB 4080

Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762). TIE BAR WITH: HB 4079'25

2025-2026 Regular Session Introduced by Joey Andrews and 7 co-sponsors

Reinstates a program allowing qualifying homeowners to defer local special assessments on homesteads, with the state paying the local unit upfront and a lien on the home.

referred to second reading
#propertytax:specialassessments
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Bill Summary · HB 4080

HB 4080 — Summary (Property tax: special assessments; reinstate deferment program)

Status: Introduced February 12, 2025; reported with substitute (H‑2) by the House Finance Committee 4/15/2025; referred to second reading. Tie bar with HB 4079 (both must be enacted).

Main purpose

Reinstate the State’s Deferment of Special Assessments on Homesteads program (1976 PA 225) for qualifying senior citizens and persons who are totally and permanently disabled, restoring a state mechanism by which qualifying homeowners can defer local special assessments and the state advances payment to local units while placing a lien on the homestead.

Key provisions and changes

  • Restores the deferment program for special assessments assessed before October 1, 2020, or for assessments assessed on or after October 1, 2022 (substitute H‑2). The department will not pay assessments assessed between October 1, 2020 and October 1, 2022.
  • Expands the statutory definition of “special assessment” to explicitly include assessments for dam construction or reconstruction.
  • Modifies survivorship rule: a deferment on a homestead owned by spouses remains in effect after a spouse’s death as long as the homestead remains jointly owned (removes the prior requirement that the surviving spouse not remarry).
  • Reestablishes repayment triggers: deferred amount (plus interest, where applicable) becomes due on sale, transfer, contract to sell, or within one year after owner’s death (subject to probate court orders).
  • Partial payment rules (substitute H‑2): owners may make up to four partial payments per calendar year; each partial payment must be at least the greater of 5% of the deferred balance (plus interest) or $500. Interest continues to accrue on unpaid balances except as modified by companion bill HB 4079.
  • Consent from mortgage lender/land contract vendor required; HB 4079 (companion) would require that consent letter state the lender/vendor understands its interest will be subordinate to the State’s lien.
  • Tie bar: HB 4080 cannot take effect unless HB 4079 is also enacted; HB 4079 makes related changes including income-cap adjustments and treatment of interest on deferred amounts.

Eligibility & required conditions (program as previously administered / largely unchanged)

  • Owner must be a U.S. citizen, have owned and occupied the homestead for at least five years, and meet a household income threshold (HB 4079 would set and index that cap; versions vary—one adopted substitute set $34,900 for the first year, to be CPI‑adjusted).
  • Written consent from mortgage lender or land contract vendor when applicable.

Fiscal impact

  • No net long‑term state/local fiscal impact expected: Treasury advances reimburse local units and is repaid when taxpayers or estates repay deferred assessments.
  • Short‑term cash flow: the program’s special revolving fund would make disbursements; analysts estimate roughly $100,000 annually in near term with a current fund balance (~$3.1 million) adequate to absorb near‑term costs. Repayments expected to offset disbursements in later years.

Who is affected

  • Primary: low‑income senior homeowners and homeowners who are totally/permanently disabled facing special assessments (including assessments for dam work).
  • Secondary: county/local assessment/treasury offices, mortgage lenders/land contract holders (must provide consent and may have subordinate interests), Department of Treasury (administration, fund advances).

Procedural/other notes

  • The program was eliminated for assessments on/after Oct. 1, 2020 by Public Act 331 of 2020; these bills seek partial restoration starting Oct. 1, 2022 (or upon the bill’s effective date, depending on version).
  • HB 4079 contains companion provisions on income eligibility and interest; both bills must be enacted for HB 4080 to take effect.

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

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