LANSING- State Representative Joel Sheltrown (D-West Branch) has introduced legislation which would extend the property tax foreclosure process from two years to three years. House Bill 5312 has been referred to the House Committee on Tax Policy.
Sheltrown's legislation would give property owners an extra year to pay delinquent taxes on their property. The bill would provide for the correction and adjustment of changes made to the tax reversion process in 1999. At that time, some legislators argued that shortening the foreclosure process would allow cities to reduce urban blight in a speedier manner. Former 103rd District State Representative Dale Sheltrown (D-Gladwin) voted against the changes made six years ago because of his concerns of the negative effect it would have on farmers and low income families in the event of a eventual recession.
In explaining the need for his new bill, Joel Sheltrown said, "Surging gasoline prices coupled with higher home heating costs as cold weather sets in are reducing the real income of many Michigan families who are already struggling to make ends meet. As a result, credit card delinquencies have reached record numbers and unpaid property tax bills are sure to follow. For farmers, skyrocketing fuel costs and stagnant crop prices increase the risk of a large number of farm foreclosures over the next five years."
Sheltrown said many families choose to give up essentials like medical care, prescription drugs, clothing, and even food rather than lose their home and land. By extending the deadline by one year, the bill would provide property owners alternatives by allowing additional time to find the money to pay back taxes. Sheltrown also feels his bill will help slow the disappearance of Michigan's family farms.