Charlotte, Mich. – The Michigan Association of County Treasurers moved to support Senate Bill 1137, proposed by Michigan Senator Jim Runestad (R-White Lake), Senate Bill 676 proposed Peter J. Lucido (R-Macomb) and House Bill 6268 by State Representative Brandt Iden (R-Kalamazoo). The bills would allow for a fair and equitable solution to the Michigan Supreme Court’s July 17 ruling that those who have property foreclosed for unpaid property taxes have a common-law right to any remaining proceeds from the sale of the property, after taxes, interest, penalties, fees and costs have been paid.
The proposed legislation changes current tax law and would allow people to request the remaining proceeds from the sale of tax-foreclosed property through the judge who ordered the foreclosure. Current tax law requires excess funds of sold properties to be deposited with the county treasurer. If passed, the new law would let people who cannot pay their property taxes to avoid foreclosure receive any remaining proceeds resulting from the sale of the property. Once a judge determines the amount owed to a claimant, the county treasurer would disburse the funds in accordance with the judge’s order within 21 days. Anyone with interest in the property could file a claim to remaining sale proceeds after required taxes, interest, penalties, fees and costs have been covered.
“The Michigan Association of County Treasurers wants to follow the direction of the supreme court,” said Jennifer Nash, Livingston County Treasurer and president for the association. “We want to help taxpayers who go through the unfortunate process of property tax foreclosure with fair and equitable recovery of remaining foreclosure sale proceeds.”
MACT supports Senate Bills 1137 and 676 sponsored by Senators Runestad and Lucido, and House Bill 6288 by Rep. Iden so that tax law can comply with the Michigan Supreme Court decision. “As county treasurers, we will continue to prevent foreclosure whenever possible,” added Nash. “County treasurers across the state use a variety of methods and numerous community resources to help people pay their taxes and prevent foreclosure.”
The work of county treasurers statewide prevented 97.5 percent of property tax foreclosures in 2019.
