The Detroit News reports (Buying a home? Tax freeze may be on way) that Michigan's House Democrats have proposed a package of bills calling for a state-backed second mortgage to provide six months of foreclosure protection to people who have lost their jobs and also for an 18-month moratorium on increases in the taxable value of a residence for homes bought and sold between March 1 and Sept. 1, 2008. While Realtors and even Senate Majority Leader Mike Bishop have expressed interest in the legislation (provided it moves quickly so as not to depress the already despondent market further):
Michigan Suburbs Alliance Executive Director Conan Smith said the tax-increase moratorium would "undermine our cities" by preventing them from collecting the full property taxes on homes sold during the next 18 months. Smith said 70 Michigan cities "sit on the brink of insolvency and cannot afford to take the hit promised by the proposal."
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