Michigan legislators seek to revive tax deferral program

Two Republican lawmakers in Michigan are working to bring back a tax deferral program that helps seniors and low-income residents. State Reps. Bill G. Schuette and Mike Hoadley recently testified in favor of reviving the Special Assessment District Tax Deferral program. This program was used for over 40 years before being suspended in October 2020. The lawmakers believe this program is needed more than ever. It would assist vulnerable homeowners, including seniors over 65 and permanently disabled individuals, by deferring special assessments. Special assessments are extra charges added to property taxes for local improvements. These charges often come without a vote from property owners. The push to revive the program follows severe flooding in Midland and Gladwin counties in 2020, which caused extensive damage. Many residents are now faced with hefty assessments for repair work that was necessary due to the flooding. Schuette emphasized the importance of having policies in place to protect residents during unexpected disasters. The proposed legislation would allow qualifying homeowners to defer special assessment taxes until they sell their property. The bills are currently under review in the House Finance Committee. The lawmakers aim to provide relief to homeowners grappling with high costs from recent infrastructure failures.