By Laura Settlemyer, Center for Community Progress
Since January 14, 2015, under Public Act 499 of 2014, (MCL 211.78), county treasurers have been entering into payment plans with delinquent taxpayers, but the law has a sunset effective June 30, 2016. Under Act 499, the county treasurer (or state) could enter into a payment plan with a delinquent taxpayer any time after the property had been returned as delinquent to the county
treasurer (year 1 of delinquency) but before the property had been foreclosed (year 3 of delinquency). Payment plans were available to financially distressed persons as defined in the Act. The taxpayer had to demonstrate that he or she was undergoing substantial financial hardship, had not defaulted on any delinquent-tax-payment plan for any other property, and that the property was exempt from the local school tax as a principal residence. An initial payment equal to 10% of the amount of delinquent taxes owed (excluding any penalties, fees, or interest) was required. The Act allowed up to five years to pay off a delinquency, while also paying any future taxes due on time.
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