St. Joe-Benton Harbor News

Sen. Kim LaSata (R-Bainbridge Township) has sponsored a bill that would make it easier for villages in Michigan to collect delinquent property taxes.

“This bill corrects a problem that was brought to my attention by several village and county treasurers from the 21st Senate District,” LaSata said, according to MiSenateGOP. “Many small villages prefer to collect delinquent property taxes, rather than have the county collect them. Unfortunately, to do so, each village currently has to adopt a resolution each year, which is a tedious process that puts further strain on already small, overworked village staff.”

Delinquent property taxes are currently collected by the county on behalf of general law villages. If a village wishes to collect the delinquent taxes itself, it must adopt a resolution and notify the county each year it wishes to collect the late taxes on its own.

Senate Bill 350 eliminates the annual requirement, letting the village resolution stand indefinitely, or until another resolution rescinds it. The only requirement is that villages specify where to pay on the village tax bill or separate enclosure.

“It doesn’t make sense that a village would have to annually adopt such a resolution if they are going to be doing the same work of collecting these taxes every year,” LaSata told MiSenateGOP. “This bill eliminates the red tape by simplifying the process of collecting delinquent property taxes. I urge the governor to offer her support by signing the bill into law.”

The bill is now on its way to Gov. Gretchen Whitmer for her signature. 

In the state of Michigan, failure to pay property taxes could result in forfeiture of property. When homeowners fail to pay their property taxes, the amount owed becomes a lien on the property. Unpaid delinquent property taxes lead to forfeiture of the property, followed by foreclosure.