What is the Michigan General Property Tax Act?

Understanding the Law Behind Property Taxes in Michigan

The Michigan General Property Tax Act (Public Act 206 of 1893) is the foundational state law that governs how property taxes are assessed, levied, and collected across all counties, cities, and townships in Michigan.

Although it has been amended many times over the years, it remains the core statute that dictates the rights and responsibilities of property owners and local governments when it comes to taxation.

This act doesn’t just affect homeowners once a year when tax bills arrive — it shapes everything from how your property’s value is determined to what happens if taxes go unpaid.

Understanding this law is essential, especially if you’re a homeowner facing financial difficulties or considering your options due to unpaid property taxes.

The Purpose of the General Property Tax Act

The General Property Tax Act (GPTA) exists to ensure Michigan communities are funded through a consistent and enforceable taxation structure. It:

Defines what types of property are taxable (real and personal property).
Sets the framework for assessments, including timelines and standards.
Regulates millage rates and how much revenue taxing authorities can collect.
Details how exemptions and deferrals (like those for veterans, seniors, and nonprofits) are applied.
Establishes the procedures for enforcing payment, including interest, penalties, and foreclosure for nonpayment.

Without this law, there would be no unified approach to funding schools, local government services, police and fire departments, or public infrastructure — all of which rely on property tax revenue.

How Property Values Are Assessed Under the Act

Each local assessor is required to determine the “true cash value” of every property — which is essentially the fair market value.

From this, the assessed value is calculated (typically 50% of the true cash value), and then a taxable value is determined, which is what your tax bill is based on.

Importantly, thanks to Proposal A (passed in 1994), increases in taxable value are limited to the lesser of 5% or the rate of inflation, unless the property is sold or significantly improved.

This helps stabilize tax bills for existing homeowners, but it also means that new buyers may face sudden increases.

Key Deadlines and Processes Set by the Law

The General Property Tax Act defines critical deadlines for property owners, including:

Assessment notices are mailed in early spring (usually March).
Property tax bills are typically issued twice per year (summer and winter).
Delinquency starts after the due date passes — usually July 1 for summer taxes and December 1 for winter taxes.
Interest and penalties begin accruing immediately after taxes are late.
Forfeiture and foreclosure: After one year of delinquency, the property is forfeited to the county treasurer, and after two years, it can be foreclosed and sold at auction.

These timelines are not arbitrary — they are required by the Act and apply uniformly throughout the state.

Gloria B. - Clinton Township, Michigan

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The Tax Foreclosure Process in Michigan

One of the most critical — and often misunderstood — components of the General Property Tax Act is how it handles delinquent taxes.

If taxes remain unpaid, the act allows for a strict and expedited foreclosure process.

Unlike mortgage foreclosures, property tax foreclosures in Michigan are not handled through the courts. Instead, they are administrative and automatic unless the taxes are paid in full or some form of relief or extension is granted.

Once the foreclosure deadline passes, the property is legally transferred to the county treasurer and sold at public auction — often with no redemption rights for the former owner.

This process is a direct extension of the powers granted under the GPTA and reflects the seriousness with which Michigan treats public funding and tax enforcement.

Why This Law Matters for Struggling Homeowners

If you’ve fallen behind on your property taxes, the General Property Tax Act is the rulebook that determines your timeline, your options, and your risks.

While the law is designed to ensure fairness and consistency, it can feel rigid — especially if you're facing hardship due to medical bills, job loss, or inherited property issues.

Understanding your rights under this law is the first step to avoiding foreclosure or taking action before time runs out.

If you’d like to explore this further, our guide on selling property with delinquent taxes in Michigan explains practical options homeowners have to avoid losing their home.

When You’re Ready to Talk Solutions

If you're dealing with mounting tax debt and worried about losing your property, you're not alone — and you do have options.

At Dennis Buys Houses, we work with Michigan homeowners to find fast, fair, and flexible solutions, including cash sales that help avoid foreclosure entirely.

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📚 Frequently Asked Questions About Selling With Delinquent Taxes in Michigan

What is the General Property Tax Act in Michigan?
The General Property Tax Act (Public Act 206 of 1893) is the Michigan law that governs how real and personal property are assessed, taxed, and — if necessary — foreclosed on due to nonpayment. It outlines rules for property valuation, exemptions, billing schedules, and the foreclosure process.

How is property value determined under the Michigan General Property Tax Act?
Property is assessed based on its “true cash value,” or fair market value. The local assessor sets the assessed value at roughly 50% of that, and the taxable value is calculated using Proposal A limits, which cap yearly increases unless the property changes ownership.

When do property taxes become delinquent in Michigan?
Property taxes are usually billed twice per year — in summer and winter. If taxes are unpaid after the due dates (typically July 1 and December 1), they become delinquent and start accruing penalties and interest as set by the GPTA.

What happens if I don’t pay my property taxes in Michigan?
If taxes remain unpaid for a year, the property is forfeited to the county treasurer. After two years of delinquency, the property can be foreclosed and sold at auction. This foreclosure process is nonjudicial and defined under the General Property Tax Act. Learn more about your options on our page about selling property with delinquent taxes in Michigan.

Can I stop a property tax foreclosure once it starts?
Yes — but only before the final foreclosure deadline. Once a property is foreclosed under the GPTA, it is legally transferred to the county and cannot be reclaimed. You can avoid foreclosure by paying the taxes or, in some cases, by selling the property before the deadline. Read about the timeline and possible solutions here.

Does the General Property Tax Act offer any exemptions or relief?
Yes, the law allows for several property tax exemptions and deferrals, including for veterans, seniors, nonprofit organizations, and poverty-related hardship. These exemptions must be applied for through your local assessor’s office and are subject to strict documentation requirements.

How is the foreclosure timeline different from a mortgage foreclosure?
Tax foreclosure under the General Property Tax Act is administrative, not judicial. There’s no court process — only statutory deadlines. Once the redemption period expires, the property is transferred to the county without further warning.

Where can I learn more about the consequences of tax-delinquent property?
Visit our educational guide on selling property with delinquent taxes in Michigan, which breaks down your legal options, timelines, and strategies to avoid losing your home.

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We Help Michigan Families Navigate These Situations Every Day

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At Dennis Buys Houses, we’re not just cash buyers — we’re trusted problem-solvers who help Michigan families find real answers during difficult times.

Since 2004, we've been helping homeowners across Michigan sell their properties quickly and easily—without the stress of agents, repairs, or hidden fees.

We’re a family-owned, local business with deep roots in the community. Over the years, we’ve helped hundreds and hundreds of homeowners in situations just like yours—whether they’re dealing with delinquent property taxes, foreclosure, or simply needing a fresh start.

If you're dealing with a tough family situation and don’t know where to turn, we’re here to help.

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