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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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