Legislative Analysis
Phone: (517) 373-8080
TAX DELINQUENT COMMERCIAL REAL PROPERTY
http://www.house.mi.gov/hfa
House Bill 4496 as introduced Analysis available at
Sponsor: Rep. Kelly Breen http://www.legislature.mi.gov
Committee: Local Government and Municipal Finance
Complete to 4-28-21
SUMMARY:
House Bill 4496 would amend the General Property Tax Act to allow owners of tax delinquent
commercial real property to be eligible for tax foreclosure avoidance agreements that are now
available only to owners of certain tax delinquent residential property.
Currently under the act, until June 30, 2026, a county treasurer can enter into a tax foreclosure
avoidance agreement for a term of up to five years with an owner of eligible property returned
as delinquent or forfeited under the act. The agreement must require regular periodic
installment payments of the delinquent taxes, with reduced interest calculated under the act,
and the owner must make an initial payment of delinquent taxes in an amount determined by
the county treasurer. While the agreement is in effect and the owner is in compliance with it
and making timely payment of nondelinquent taxes, the property is withheld or removed from
foreclosure.
The act currently defines eligible property as property classified as residential that is eligible
for the principal residence exemption under the act (i.e., generally speaking, it is owned and
occupied by a Michigan resident as his or her principal residence).
The bill would add commercial real property as eligible property for purposes of section 78q
of the act, which includes the provisions described above.
MCL 211.78q
FISCAL IMPACT:
As written, the bill is likely to have a small and indeterminate impact on state and local
revenues. By allowing for a tax foreclosure avoidance agreement, local units and the state
would recover some back taxes faster than they would have under current law, and potentially
receive some revenue that would have been lost entirely if the property had been foreclosed.
Some potential revenue will be lost by reducing interest penalties for taxpayers who
successfully complete the installment plan. The balance between these two effects cannot be
determined in advance with available data.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Jim Stansell
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations, and does not constitute an official statement of legislative intent.
House Fiscal Agency Page 1 of 1


Statutes affected:
House Introduced Bill: 211.78