Kent County treasurer reports higher investment income, lodging-tax growth and rising tax delinquencies

Kent County Treasurer Peter McGregor told the Board of Commissioners that county investment income totaled just under $3 million in 2024, the county’s lodging excise tax rose from 5% to 8% in January 2025 and delinquent property‑tax dollar totals have climbed even though the number of delinquent parcels has stayed roughly level.

McGregor gave the commission a roughly 35–40 minute briefing on the treasurer’s office mission, investments, lodging‑tax collection and delinquent‑tax procedures. “SLI is an acronym obviously for safety, liquidity and yield. The weight favors the safety. That’s kind of my number one concern,” McGregor said, describing the office’s investment philosophy. He told the board the county’s portfolio is concentrated in certificates of deposit and local banking instruments and that the county’s investment policy and state statute (Public Act 20) guide holdings.

Why it matters: investment income and lodging taxes affect county revenues available for services, while rising delinquency balances can increase pressure on foreclosures and local units that rely on property‑tax distributions.

McGregor said the lodging excise tax increase, effective January 2025, is expected to push annual revenue from the tax to about $23 million; as of mid‑year the county had collected almost $11 million and by July/August the tally reached about $15 million. He said Airbnb is voluntarily collecting and remitting lodging taxes for many of its listings and already ranks among the top three payers; other platforms such as Vrbo have taken the position that state law assigns collection responsibility to individual hosts rather than platforms.

On delinquent taxes and foreclosures, McGregor said the county accepts a delinquent tax roll every March and typically issues a short‑term note to make local units whole. He said delinquent dollar amounts have risen over the last five years while the number of delinquent parcels has been “pretty much level.” “We pretty much prevent over 98% of all tax foreclosures within our county,” McGregor said, adding that most foreclosed properties in the most recent cycle were vacant lots or condemned properties.

McGregor described a new pilot the treasurer’s office calls “Home for Generations,” modeled on programs in other Michigan counties, that pairs probate courts, pro bono attorneys and home‑repair partners to rehabilitate inherited properties and help heirs avoid foreclosure. “We finally got our first case,” he said, identifying the participant only by her first name, Nicole, and describing partnerships with probate and local home‑repair services.

Commissioners questioned the treasurer on a range of issues: whether rising delinquencies signal an impending housing market problem; the statutory basis for interest and fees on delinquent taxes; how Kent County compares to other counties on foreclosure prevention; and options for collecting lodging tax from platforms that do not remit. McGregor told Commissioner Pondstein that changing the underlying property‑tax system would require state legislative action: “I really have no control over the delinquency that comes into the county… possibly we need to change our state law.”

On short‑term rentals, McGregor and county staff said the cleanest long‑term fix would be a state law amendment that attached collection responsibility to platforms rather than hundreds of individual hosts; absent that, increased local enforcement would require additional staff and funding. County staff noted there are commercial services that can identify online listings but that the county would still need staff to process collections and audits.

Board members commended the treasurer’s office for foreclosure‑prevention work and customer service, and for bilingual outreach and online payment options; McGregor noted more than a third of payments now arrive electronically and the office provides materials in English and Spanish. He also highlighted the county’s AAA bond rating and said maintaining that rating benefits local units and taxpayers.

Next steps: McGregor told the board he can provide additional data on delinquency drivers and options to increase short‑term rental compliance, and suggested the commission could decide whether to pursue state‑level changes or fund expanded local enforcement. The presentation drew multiple questions but no formal county decisions beyond acknowledgement and direction to staff to provide follow‑up information.