HB 4135 Summary

• Allows land contract vendors, banks, credit unions, and other lending institutions to retain principal residence exemptions on foreclosed properties acquired in 2012-2014 for up to 3 tax years if property remains unoccupied, unsold, unleased, and unused for business purposes.

• Requires foreclosing entities retaining exemptions to pay an amount equal to additional school operating taxes (MCL 380.1211) plus administration fees, collected by local tax collecting units and distributed to the state school aid fund.

• Eliminates certain language requiring payment of "any" property taxes, restricting the payment requirement to properties acquired specifically through foreclosure or forfeiture during 2012-2014.

• Establishes annual verification requirement by December 31 for entities claiming conditional rescissions; failure to verify results in exemption denial retroactive to prior year.

• Provides that if leased, the conditional rescission is retroactively denied effective December 31 of the preceding year.