LANSING, Mich. — A bill that would simplify the way villages collect delinquent property taxes has been finalized by the Legislature and is on its way to the governor for signature.
“This bill corrects a problem that was brought to my attention by several village and county treasurers from the 21st Senate District,” said Sen. Kim LaSata, the bill sponsor. “Many small villages prefer to collect delinquent property taxes, rather than have the county collect them. Unfortunately, to do so, each village currently has to adopt a resolution each year, which is a tedious process that puts further strain on already small, overworked village staff.”
Currently, delinquent property taxes that are owed to general law villages are collected on their behalf by the county in which they reside. Should a village wish to collect the delinquent taxes itself, the village must adopt a resolution each year declaring its intent and informing the county.
Senate Bill 350 would eliminate that annual requirement, allowing affected villages to simply adopt one resolution that would be in effect indefinitely or until another resolution is adopted revoking it. Any village that intends to collect its own delinquent taxes must also specify on the village tax bill or separate enclosure where the taxes are to be paid.
“It doesn’t make sense that a village would have to annually adopt such a resolution if they are going to be doing the same work of collecting these taxes every year,” LaSata said. “This bill eliminates the red tape by simplifying the process of collecting delinquent property taxes. I urge the governor to offer her support by signing the bill into law.”