Bulletin: MI000006

Dear Associates:

Act No. 80 of the Public Acts of 1994 provides for an immediate change in the General Property Tax Act. The bill amends Section 40 of the Act by providing that taxes assessed on real property will be a lien on the property as of "tax day" (December 31st of the year prior to the year the taxes are collected).

Under previous law, property taxes became a lien on December 1st, the date the tax was due and payable. By making the lien effective on "tax day", the legislature has advanced the lien by 11 months to the day when the status of property and ownership are established for tax purposes. In other words, a lien already exists for the 1994 taxes, even though they will not be due and payable until December 1, 1994.

All title commitments should hereafter contain the following exception: "Taxes, tax liens and assessments which are due and payable subsequent to date of commitment". All title policies should contain the following language: "Taxes, tax liens and assessments which are due and payable subsequent to date of policy".

Taxes and assessments which have become due at commitment or policy date must be shown as additional exceptions as always.

If you have any questions concerning this bulletin, please contact the Michigan District Office.