Mayor Duggan Encourages Detroiters to Take Advantage of Tax Assistance
CBS Detroit - In a press conference that was streamed online Monday, Detroit Mayor Mike Duggan encouraged Detroiters who qualify for property tax assistance to take advantage of the Pay As You Stay, or PAYS program.
The PAYS program is a three-part plan that aims to keep residents in their homes. For those who qualify, all interest, penalties, and fees are eliminated. To reduce the burden on homeowners, the balance due would be limited to back taxes only, or 10% the home's taxable value - whichever is less. The remaining balance is paid back over three years at 0% interest.
Duggan said interest charges, fees, and unfair assessments have made some residents' tax burdens unpayable. He added that in many cases half to two-thirds of payments can be reduced.
Wayne County Treasurer Eric Sabree said that with COVID-19 causing complications in keeping up city and county services, his staff has made it possible to enroll either by mail, email, or online.
The City of Detroit has already mailed the first 4,000 letters to residents who are delinquent or on payment plans who may qualify. Residents have to respond to the letters if they are interested in participating.
Duggan said "If you own a house in the City of Detroit, and you are an individual who makes less than $22,000 a year, or a family of 4 who makes less than $32,000 a year, it is likely you are entitled to a break on your property taxes under our poverty exemption ordinance."
Present at the press conference was Detroit resident Derrick Kennedy. He purchased his Detroit home in the 1980s and was at risk of property tax foreclosure. Due to missed property tax payments, fines, fees, and interest charges, his tax bill added to over $11,000. A steep bill he had little to no hope of paying. The PAYS program waived those fees and interest charges to a more manageable $600. Kennedy was relieved and said, "Think I can manage that."
Credit: WayneCounty.com - Wayne County Treasurer Eric Sabree
In terms of success rate, Sabree said: "So far we had 311 people have a zero balance automatically, and another 299 actually enrolled, and 45% of that group paid it in one lump sum." Adding, "So it is working well, we just have to get the word out even more for people to respond."
The PAYS Program, House Bill 5124 was sponsored by Rep. Wendell Byrd, D-Detroit, and signed into law in March of 2020 by Governor Whitmer. Wayne County Executive Warren C. Evans said in a press release, "This legislation will help residents move off payment plans and avoid foreclosure".
However, the income requirements in that press release were lower than what Duggan quoted.
Detroiters who think they may qualify for PAYS can email the Wayne County Treasurer's Office at taxinfo@waynecounty.com or visit: https://www.waynecounty.com/elected/treasurer. Residents can also mail an application to the Wayne County Treasurer's office.
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