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CITY ACQURED TAX REVERTED LAND
POLICY AND PROCEDURES
FOR DISBURSEMENT OF SALE PROCEEDS
Purpose
To implement an aggressive plan to claim from the
State of Michigan, DNR Land Sales Division, prior to
the state land sale, selected vacant and/or developed
parcels of land located within the City and prior to
the state tax sale. The City of Muskegon’s intent is
to return these properties to the tax rolls unless
they are retained for public purposes.
Policy
1. Expenses
The City of Muskegon aggressively markets these
taxes reverted lands and therefore may incur some
expenses and costs associated with sales. The
City may account for and be reimbursed for all
reasonable expenses in connection with the sale
of a tax reverted parcel of property. Such
related expenses could include but not limited to
the following
a) City employee’s staff time in preparing the
property for the sale and through the actual
transfer of the property.
b) Advertising expenses and printing of
marketing materials
c) Title search and title commitment
a) Closing expenses and transfer fees (sellers
costs)
e) Real estate broker commissions (reasonable
fees)
£) Special Assessments (balance of any existing
assessments)
g) Water bills, misc. invoices, & any other
debts not yet spread on the tax roll.
Excess revenue
Any excess revenue after such expenses are paid
must be distributed to the local taxing units and
the State of Michigan (for the state education
tax). This distribution would be in the same
proportion as the tax millage rates in the year
prior to the sale of the parcel.
Profit
The City of Muskegon nor any other jurisdiction,
including the State of Michigan, is not permitted
to make a profit on any of the “sales of state
lands for public purposes” which would include
the tax reverted land.
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