New Laws Taking Effect – tax rate and restriction implications for lake landowners

Updated: 20240329

Today, Governor Whitmer signed Senate Bill 721 (approved by all Senate and House members) that extends the issue of addressing deed and covenant restrictions until September 2025. The original legislation allowing expiration of rights and covenants after 40 years is still in play, but the grace period to request extension has  been moved out to 2025.

Read more about it at Michigan Lake and Streams.

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The LDCA has been made aware that years ago, the Michigan Legislature passed legislation that will do two things that affect you as a lake resident.

  1. Your property taxes could increase by several times depending on how long you have lived in your home since 1995; an “uncapping of real estate property taxes”.
  2. The restrictions in place in your development could be wiped away, removing any prohibition to rentals, commercial, multi-family, junk storage, or any other restriction that you may have.

To find out more see the article that Cliff Bloom, representation for Michigan Lakes and Streams, says about how it will affect you and all waterfront property owners below. If you are concerned about this, please contact your Michigan legislature officials.

Two Ticking Time Bombs, Article by Cliff Bloom