Michigan Senate Bill SB0423

Michigan 2025-2026 Regular Session

• Introduced: 6/12/25
• Refer: 6/12/25
• Report Pass: 10/23/25
• Refer: 10/23/25
• Report Pass: 10/28/25
• Engrossed: 10/29/25
• Refer: 10/29/25

Caption

Property tax: delinquent taxes; sunsets on certain delinquent tax payment reduction and foreclosure avoidance programs; modify. Amends sec. 78g & 78q of 1893 PA 206 (MCL 211.78g & 211.78q).

Impact

The implementation of SB0423 is expected to have substantial implications for state laws governing property taxes and foreclosure proceedings. By modifying sections related to payment plans and reductions, the bill is designed to enable better financial management for distressed property owners and provide local governments with additional tools to manage delinquency. Additionally, by emphasizing payment plans over foreclosure, this legislation aims to support property retention and community stability, which may have positive longer-term effects on local economies.

Summary

SB0423 proposes amendments to the General Property Tax Act, specifically regarding delinquent taxes and foreclosure avoidance programs. The bill introduces a payment reduction mechanism for property owners who are financially distressed and allows some measure of forgiveness for unpaid delinquent taxes. This legislation aims to alleviate the burden on individuals facing potential foreclosure due to tax delinquencies by allowing counties to reduce the total payment required to redeem properties, contingent on specific conditions being met, such as lump-sum payments and adherence to installment plans.

Sentiment

General sentiment surrounding SB0423 appears to be favorable among stakeholders concerned with property rights and economic resilience. Supporters appreciate the focus on reducing financial burdens for low-income families and preventing loss of homes through foreclosures. However, some legislators and financial institutions express caution, raising concerns about potential impacts on local government revenue streams and the administrative burden placed on county treasurers in managing new payment reduction programs.

Contention

Notable points of contention regarding this bill include potential disputes over the definition of 'financially distressed' and eligibility for the proposed payment reductions. Critics fear that the terms may be too broad, allowing too many individuals to qualify at the expense of local revenue needs. Additionally, concerns have been raised over how the implementation of these changes will be monitored and enforced, as well as the financial implications for counties that may lose out on delinquent tax revenue.