State Summary

• Tax Collection Method: Deeds
• Primary Bidding Type: Premium
• Redemption Period: None
• Redemption Interest Rate/Flat Penalty: Not applicable

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Michigan. Please read this information carefully. There are tax collection laws that pertain to all counties in Michigan, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is Michigan a tax lien or a tax deed state?
Michigan is a former tax lien state that converted to a tax deed state in 1999.

What is the name of the county official whom typically collects property taxes in Michigan?
The County Treasurer.

When are property taxes due in the state of Michigan?
The annual property tax payment for all counties in Michigan is due February 15.

When do property taxes become delinquent in the state of Michigan? 
The annual property tax payment for all counties in Michigan becomes delinquent beginning the day after the due date. A 3% flat penalty is assessed and added to the tax bill amount. For tax bills that remain delinquent on March 1, 1% per month simple interest begins to accrue on top of the delinquent amount. For taxpayers with tax bills delinquent by more than two years on this date, an additional 4% flat penalty is added to the delinquent tax amount and their properties become eligible for foreclosure.

What is the name of the county official whom typically conducts tax deed sales in Michigan?
The County Treasurer is responsible for initiating tax deed sales in 70 of Michigan's 83 counties. Tax deed sales in the remaining 13 counties are handled by Michigan's Department of Treasury.

When does the typical Michigan county hold their tax deed sale?
There may be up to three tax deed sales per year in a Michigan county. The first sale may not take place any earlier than July. The first sale of the sale season is usually a "minimum bid" auction, meaning that the opening bid is the total amount of taxes owed plus fees. Subsequent tax deed sales must take place at least 28 days after the first auction. These sales may be "minimum bid" auctions, or the opening bid may be the fair market value of the property as determined by local assessor. For properties that remain unsold after three sales, the ownership is transferred to the city, village or township.

What are the registration requirements for the typical Michigan tax deed sale?
A third-party company called Title Check handles public land auctions for 56 of Michigan's 83 counties. Investors must register with Title Check's Web site and make a refundable deposit of $1,000. The $1,000 is returned to unsuccessful bidders.

What is the bidding type used at a typical Michigan tax deed sale?
All Michigan tax deed sales use premium bidding. Title Check runs auctions that accept absentee bids prior to the auction, live online bids, and live on-site bids. Commonly, the highest absentee bid becomes the opening bid at the auction. From that point, the online and on-site bidders compete against one another to determine the highest bidder.

What are the general terms of payment for the typical tax deed purchased at an Michigan tax deed sale?
For Title Check auctions, the full balance for the tax deed is due within one hour after the close of the auction. The balance may be paid by check, money order, certified funds, or credit card. There is also a 13% buyer premium added to the amount of the tax deed. However, a 3% discount is given for non-credit payment, reducing the buyer premium to 10%.

Are tax deeds offered "over-the-counter" in Michigan?
No.

What is the name of the local official whom typically determines the values of properties on a annual basis?
City and township assessors determine values for properties in their respective cities/townships.

For more information on the life cycle, requirements, and administering of tax foreclosures in the state of Michigan, refer to the Delinquent Property Tax Foreclosure Public Act 123 of 1999 in the Michigan Compiled Laws.


Michigan County Reference