Special Assessment Deferral Program

State

Michigan

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

Effective 1 October 2020, no new applications are accepted. The benefit defers special assessments. The minimum deferral, exclusive of interest, is $300. Deferred taxes accrue interest at the rate of 1/2 percent per month (6 percent per year). Taxes are due one year from the date of the death of the last homeowner for special assessments assessed before October 1, 2020. Deferment of taxes through this program will result in a lien being placed against the property in the amount of the deferred taxes plus interest.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Other Criteria

Description of Eligibility Criteria

No new applications are accepted. The individual must be 65 years or older or be totally and permanently disabled, a citizen of the United States, a resident of Michigan for 5 or more years, and the sole owner of the homestead for 5 or more years.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

After 1 October 2020, the state will no longer reimburse local governments for the deferred taxes. The Department of the Treasury shall transmit to the collecting officer the sum of money required to indemnify the local special assessment district for a revenue loss resulting from the deferment of the special assessment.

Record ID

MI105_RR22

Footnotes

A homeowner may make partial payments on the balance of special assessments, including interest. The homeowner can make up to four partial payments per calendar year. Each partial payment cannot be less than five percent of the balance or $500. Payment is due in full one year after death of the owner or if the homestead is transferred/sold. At the time of payment, a lien will be recorded against the property in favor of the State of Michigan. The lien will be subject to interest at one-half of 1% (.05) per month or fraction of a month (6% per year), when repaid to the State. The lien will be removed when the deferment, plus interest, is repaid by the taxpayer or the taxpayer's estate.

Sources

Mich. Comp. Laws § 211.761 ~ 211.770 (in effect for 2022)
Michigan Department of Treasury, Senior Citizen or Totally and Permanently Disabled Person's Affidavit Requesting Special Assessment Deferment, form 2748 (2020)
[https://www.michigan.gov/-/media/Project/Websites/taxes/RETIRED_2748_DSA_Affidavit__Instructions_2020.pdf?rev=86254fd20a7248b9bc1cdce17ca950f4 Accessed 02/16/2023]
View Archived Source

Michigan Department of Treasury, Frequently Asked Questions (FAQs) About Deferred Special Assessments, form 4675 (Rev. 01-2020)
[https://www.michigan.gov/taxes/-/media/Project/Websites/treasury/Assessors/DeferredSpecialAssessments.pdf?rev=7040b4b89ab547f0a98af548f5813987&hash=9DDFD64648A61E7DD98D26CA3DE341C1 Accessed 02/16/2023]
View Archived Source
Michigan Department of Treasury Property Tax Deferment Website
[https://www.michigan.gov/taxes/property/deferment/deferment-of-special-assessment-on-principal-residence Accessed 02/16/2023]

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