Michigan Senate Bill SB0484

Michigan 2025-2026 Regular Session

• Introduced: 7/17/25
• Refer: 7/17/25

Caption

Property tax: exemptions; exemption of certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends sec. 7gg of 1893 PA 206 (MCL 211.7gg). TIE BAR WITH: SB 485'25

Summary

Senate Bill 484 would amend Michigan’s General Property Tax Act to extend and clarify a property tax exemption for certain properties transferred out of public ownership by land bank fast track authorities or foreclosing governmental units. Under current law, those properties are exempt from collection of taxes for a limited period after transfer; the bill changes that period from five years to eight years. The exemption would continue to apply beginning December 31 of the year the property is sold or conveyed and would run until December 31 eight years later, rather than five. The bill also preserves an exception for properties included in a brownfield plan, but only when specified conditions are met. In those cases, the exemption would not apply if the brownfield plan includes assistance to a land bank authority and the land bank approves release of the exemption when the authority has already pledged the related specific tax revenue to bonds, notes, or a reimbursement agreement. The bill confirms that properties receiving this exemption remain subject to the specific tax under the Tax Reverted Clean Title Act. It is tied to Senate Bill 485, meaning it would not take effect unless that companion bill is enacted.

Impact

SB 484 would amend MCL 211.7gg in the General Property Tax Act to lengthen the post-transfer tax exemption period for certain tax-delinquent or foreclosed properties from five years to eight years. This would affect land bank fast track authorities, foreclosing governmental units, local tax collection, and properties transferred for redevelopment or disposition after tax foreclosure. The bill also interacts with the Brownfield Redevelopment Financing Act and the Tax Reverted Clean Title Act by preserving specific tax obligations and limiting the exemption where revenue has already been pledged to support land bank financing arrangements.

Sentiment

The bill appears to be framed as a technical or redevelopment-oriented tax change rather than a controversial policy shift, and the available record does not show committee testimony or recorded votes indicating strong opposition or support. Its structure suggests an effort to provide additional time for redevelopment of tax-reverted properties and to align tax treatment with land bank financing needs. The tie-bar to SB 485 indicates it is part of a coordinated legislative package.

Contention

The main point of potential contention is the longer tax exemption period, which could reduce near-term property tax revenue for local governments and taxing units while benefiting land banks and redevelopment efforts. Another possible concern is the interaction with brownfield financing and pledged tax revenues: the bill preserves exemptions unless a land bank has already committed the specific tax to bonds, notes, or reimbursement agreements, which may require careful administration. Support would likely come from land banks, redevelopment interests, and local economic development advocates, while fiscal stakeholders focused on tax base preservation could be more cautious.