Michigan House Bill HB5420

Michigan 2023-2024 Regular Session

• Introduced: 2/1/24
• Refer: 2/1/24

Caption

Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762).

Impact

By deferring special assessments due and payable until a year after the owner's death, the bill significantly alters the financial landscape for homestead property owners in Michigan. It effectively helps reduce the financial stress that assessments impose on families during a difficult time. The bill stipulates that payments are due in full if the property is sold or transferred, thus ensuring that the local governments and treasury departments retain their rightful collections while offering some relief to property owners. The impact of this legislation could help residents, especially the elderly or disabled, manage their properties without the immediate worry of outstanding assessments.

Summary

House Bill 5420 aims to amend the existing law regarding the deferment of special assessments on homestead properties in Michigan. The bill seeks to provide clear conditions under which homestead property owners can defer the payment of special assessments until specific events occur, such as the owner's death or transfer of the property. The legislation reinforces the eligibility criteria for deferment, especially highlighting provisions for individuals who are permanently disabled. This is essential for protecting vulnerable demographics, ensuring they are not burdened by immediate financial obligations related to property assessments.

Contention

Some points of contention arise from the implications of this deferment structure on local government tax revenue. Local governments may need to adjust their budgets and financial planning based on the expected deferment of income from property assessments. Furthermore, there might be concerns regarding how this bill interacts with other state regulations or proposed legislation, particularly Senate Bill No. 5419, which is tied to the enactment of HB5420. Legislators and advocacy groups may raise differing opinions on the effectiveness of such a deferment policy in addressing broader issues of housing affordability and tax equity within the state.