MI HB5764

County treasurers may waive up to 100% of fees and up to 75% of interest charges on delinquent property taxes if the owner was unemployed for at least 2 consecutive weeks during a year when state unemployment was 8.5% or higher, had household resources not exceeding 200% of federal poverty standards, and the property was their principal residence exempt from school operating taxes.

Conditions for fee and interest waivers require that the property continuously remained the owner's principal residence exempt from school operating taxes from December 31 of the year taxes became delinquent through the redemption period.

For residential properties with tax foreclosure avoidance agreements, county treasurers may waive up to 75% of interest computed at 1/2% monthly on originally delinquent taxes, and property must be withheld from foreclosure petitions while the agreement is effective.

Establishes a payment reduction program for properties subject to section 7u exemptions in participating local units of government through July 1, 2025, allowing reduction of delinquent taxes to 10% of taxable value, cancellation of service charges and all interest/penalties, plus an additional discretionary reduction up to 10% for lump-sum payments within specified timeframes.

Payment reductions must be repaid within 3 years; if owners fail to comply, full original amounts including canceled interest and penalties become due and property is included in the next foreclosure petition.