Summer Property Tax Payment Deadline Extension Passes First House Committee

June 4, 2020

Legislation advanced yesterday that will allow businesses whose operations have been negatively impacted by government actions to inhibit the spread of the coronavirus to get an interest and penalty free extension to pay their summer 2020 property taxes.

The Michigan Chamber has been working with Representative Lower on a proposal to delay summer property taxes and testified in support of the legislation last week.  Yesterday, the House Local Government and Municipal Finance Committee reported HB 5761 and HB 5810 out unanimously.   The bill moves forward to the House Ways and Means Committee where further changes are expected. 

The bill would require taxpayers to file an affidavit with their local tax collecting unit by August 28th attesting that they experienced economic hardship as a result of the COVID-19 public health emergency.  Once filed, the taxpayer would have until February 28th to pay their summer 2020 taxes penalty and interest free.  Additionally, all local units would be required to offer payment plans to taxpayers in need of additional time to pay their bill. 

If they taxpayer does not enter into an installment plan and files the affidavit to defer their summer 2020 tax bill to February 28th and still cannot make the payment, they will be allowed to enter an installment plan at that time for a period not to exceed the due date of the winter 2020 tax payment.  .5% interest will be charged on installment plants entered into after February 28th.

Local units of government will be held harmless through the use of delinquent tax revolving funds.

For more information on this proposal please contact Dan Papineau at dpapineau@michamber.com