City Policies Tax Reverted Land - 5/14/96

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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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