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Committee asks Legislative Policy Division to study delinquent-tax fees and interest after resident testimony
Summary
After a resident described a sidelot tax growing from about $58 to more than $320, the Budget, Finance & Audit committee voted without objection to request the Legislative Policy Division evaluate what it would take to amend fees and interest the county charges on delinquent property taxes.
The Detroit City Council Budget, Finance & Audit committee voted on Feb. 18 to request that the city’s Legislative Policy Division (LPD) examine how state and county rules determine fees and interest applied to delinquent property taxes. The unanimous, no-objection request follows testimony from Wayne Ramachin Sr., a District 4 resident and volunteer director with the Caribbean Community Service Center, who described how a sidelot tax grew from about $57.91 in 2022 to $329.72 by the time it was noticed.
Ramachin told the committee the law and current practices can transform small unpaid balances into much larger obligations and called the outcome ‘‘predatory.’' He said his example was not a criticism of the Wayne County treasurer’s office personally but an argument that the statutes and fee structures need legislative reform to protect homeowners.
Vice Chair Leticia Johnson moved that LPD prepare an evaluation of what would be required to change the fees and interest charged for delinquent taxes, specifically noting the county-assessed fees. Committee members, including Mary Waters, pressed for clarity on existing county programs such as the interest-reduced stipulated payment agreement (IRSA), which reduces interest on owner-occupied parcels from 18% to 6% when applicable.
The motion asks LPD to consider legal and practical steps for the city to pursue legislative or policy changes at the state or county level. The chair announced there were no objections and the request will be transmitted to LPD for study. The committee did not adopt a policy change; it requested an LPD evaluation and possible resolution that could be forwarded to state officials for consideration.
Next steps: LPD will prepare the requested evaluation and the committee indicated it expects follow-up reporting to determine whether the council should pursue a resolution or other legislative action.
