Bill To Help Homeowners With Delinquent Tax Bills Clears House

LANSING – A bill designed to give some relief to Michigan homeowners in financial duress over delinquent tax bills has cleared a major hurdle.

State Representative Phil Cavanagh's (D-Redford) bill, House Bill 4882, passed the Michigan House of Representatives unanimously.

"You know there could be a person over there or two that has an objection but usually if something passes unanimous - their of like mind," said Cavanaugh. "It doesn't seem too controversial but  I'll get a better read when I start marketing over there and get a hearing in tax policy."

As Cavanagh refers to it – the distressed taxpayers bill – authorizes a county treasurer to create a delinquent property tax installment plan for a principal residence, the title to which is held by a financially distressed person.

"I worked with the Michigan Association of County Treasurers on this bill to ensure that residents who have fallen on hard time will be able to save their home from tax foreclosure. While I expected it to pass on third reading, I am ecstatic that it passed with unanimous support from my colleagues," said Cavanagh.

Upon successful completion of the installment plan the county treasurer shall then waive any incurred penalties and interest, which compounds the hardship when a distressed property owner falls behind on their tax bill.

Cavanaugh says the bill will likely get a warm reception in the senate. To be eligible for the payment arrangement program residents will have to prove an income at or below the poverty line.