Michigan law allows property tax assessment deferment for senior homeowners

Michigan House Bill 4079, introduced on February 13, 2025, aims to provide financial relief to senior citizens and permanently disabled homeowners facing special assessments on their properties. The bill allows eligible homeowners—those aged 65 or older, or totally and permanently disabled, who have owned their homestead for at least five years—to defer special assessment payments. This deferment is particularly significant as it can ease the financial burden on vulnerable populations, allowing them to maintain their homes without the immediate pressure of these assessments.

Key provisions of the bill include the establishment of a special revolving fund to assist homeowners who have borrowed money to pay special assessments prior to the bill's enactment. This fund will enable the state to repay lending institutions on behalf of qualifying individuals, thereby creating a lien on the homestead that reflects the amount paid. The bill also outlines the application process for deferment, requiring homeowners to submit an affidavit to their local assessing officer, with strict penalties for false claims.

Debate surrounding the bill has focused on its potential impact on local government revenues, as special assessments are a significant source of funding for community projects. Critics argue that deferring these payments could strain local budgets, while supporters emphasize the need to protect vulnerable homeowners from financial distress.

The implications of House Bill 4079 extend beyond immediate financial relief; it reflects a growing recognition of the challenges faced by aging populations and those with disabilities in maintaining homeownership. As the bill progresses through the legislative process, its outcomes could set a precedent for similar measures in other states, highlighting the balance between community funding needs and individual homeowner protections.