The bill amends the General Property Tax Act by updating sections 78g and 78q, which address the forfeiture and redemption of properties due to unpaid taxes. It establishes that properties certified as abandoned or delinquent for taxes, interest, penalties, and fees for the preceding 12 months will be forfeited to the county treasurer on March 1 of each tax year. A new $175 fee is introduced for each property with unpaid taxes to support the administration of the forfeiture and foreclosure process. The bill also clarifies the timeline for the foreclosing governmental unit's right to possession and the recording of forfeiture certificates with the county register of deeds.

Additionally, the bill introduces a payment reduction program for properties with unpaid taxes, allowing for reductions under specific conditions, and mandates that the county treasurer cancel any remaining unpaid amounts if a reduced payment is made. It outlines the requirements for local governments to participate in this program and the notification process for affected units. The bill also establishes a delinquent property tax installment payment program for local units that provide written notice of participation, enabling foreclosing governmental units to create payment plans for financially distressed individuals to avoid foreclosure. Furthermore, it introduces a tax foreclosure avoidance agreement for eligible residential properties, requiring regular installment payments and defining "eligible property" and "financially distressed person" to ensure targeted assistance.

Statutes affected:
House Introduced Bill: 211.78