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SB 485

Taxation: specific tax; application of tax reverted property specific tax to certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends secs. 4 & 5 of 2003 PA 260 (MCL 211.1024 & 211.1025). TIE BAR WITH: SB 484'25

2025-2026 Regular Session Introduced by Sarah Anthony

Michigan bill clarifies tax obligations on foreclosed, tax-delinquent properties sold by government entities to affect municipal revenue and property market recovery.

REFERRED TO COMMITTEE ON HOUSING AND HUMAN SERVICES
#propertytax:delinquenttaxes #taxation:specifictax
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Bill Summary · SB 485

Legislative bill overview

SB 485 modifies Michigan's property tax laws regarding tax-delinquent properties that are foreclosed and sold by governmental units. The bill amends existing statutes to clarify how specific tax obligations apply to properties that have been seized for unpaid taxes and then conveyed by the foreclosing government entity. It is tied to SB 484, indicating the two bills work together as a package.

Why is this important

Property tax foreclosures significantly affect both individual homeowners and municipal finances. This bill addresses a technical gap in how tax liabilities transfer when governments sell delinquent properties, which impacts the attractiveness of these properties to buyers, the revenue municipalities can recover, and whether previous owners retain any residual tax obligations. Clarifying these rules can influence local government budgets and property market dynamics.

Potential points of contention

  • Fairness to previous owners: Changes to when tax obligations end could affect whether delinquent taxpayers remain liable for taxes after foreclosure, raising questions about debt forgiveness versus accountability.
  • Municipal revenue impact: Alterations to how specific taxes apply to foreclosed properties may reduce government revenue from tax sales or shift financial burden between local units.
  • Buyer incentives and market effects: How tax obligations transfer to new purchasers directly influences whether developers and investors will buy foreclosed properties, potentially affecting neighborhood stabilization efforts.

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

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