DELINQUENT TAX REVOLVING FUND

What is this? It is a term that is going to be coming out in the next few months. Let me try to explain.

When someone fails to pay their property tax the county has this account where they give the local municipality (Village, Township ect.) an interest free loan to keep them financially whole. This account is called "Delinquent Tax Revolving Fund." When the property owner eventuality pays the property taxes, the money including interest and penalties gets deposited into this account. 

If the property owner does not pay the taxes and the property gets seized there is a process for the county to sell it. The process of selling is not important regarding the money in this fund.

Lets say the property owner owes $1,000 in back taxes and the property goes up for auction. Now, lets say the property has a house and sells for $50,000. Who keeps the other $49,000. The county has been taking it all. The amount that is owed to them and all the rest of the equity. 

County commissions all across the state spent the money! Billions of dollars!

This is currently being argued in the Michigan Supreme Court. The court will more than likely rule on behalf of the property owners because it violates the Michigan Constitution. If the courts make the county pay the property owners back as far as 2 years or more it will put our county in an extremely precarious financial situation. 

This ruling could result in Billions of dollars being paid back across multiple counties. Problem is, they don't have it any more. It is all spent! 

https://www.detroitnews.com/story/news/local/michigan/2019/11/07/can-counties-profit-tax-foreclosures-supreme-court-decide/2517065001/

https://www.michiganradio.org/post/tax-foreclosure-lawsuit-asks-how-much-can-government-take-property-owners

© paid for by the committee Jack Coleman for State Representative.

16276 Kipker rd Three Rivers, MI 49093