Wayne County Treasurer Eric Sabree is applauding a new law signed by Governor Gretchen Whitmer that allows county treasurers to work with homeowners, and implement payment plans with reduced interest rates on back property taxes.A temporary law from late 2014 allowed this, but was scheduled to sunset June 30th. Now, the law has been extended until 2026.
By state law, the usual interest rate on delinquent property taxes is 18%. Interest Reduced Stipulated Payment Agreements (IRSPAs) set interest at 6%, and allow homeowners to pay their back taxes over five years. The program also mandates that homeowners stay up to date on current property taxes while paying off the delinquencies.
Sabree credits the law with reducing the number of property tax foreclosures in Wayne County. He says that around 14,000 county homeowners are currently on IRSPAs.