The bill amends the General Property Tax Act of 1893, specifically sections 78g and 78q, to revise the procedures for 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 will be forfeited to the county treasurer on March 1 of each tax year, with a new $175 fee added for unpaid amounts to support the foreclosure process. The bill also clarifies the timeline for the foreclosing governmental unit's right to possession and the recording of forfeiture certificates, including provisions for electronic authentication. Additionally, it introduces a payment reduction program for properties with unpaid taxes, allowing for reductions under certain conditions, and specifies that any remaining unpaid amounts will be canceled if a reduced payment is made.

Moreover, the bill outlines the establishment of delinquent property tax installment payment plans for financially distressed individuals, enabling them to avoid foreclosure if they adhere to the plan. It introduces a tax foreclosure avoidance agreement that county treasurers can enter into for up to five years, with penalties for non-compliance. The bill also clarifies definitions for "eligible property" and "financially distressed person," and includes provisions for auditing payment plans by the department of treasury. Notably, it removes the previous deadline of June 30, 2026, for entering into tax foreclosure avoidance agreements, extending the timeline for certain provisions until July 1, 2030.

Statutes affected:
House Introduced Bill: 211.78