Past Due Utility Accounts and Liens

In Michigan, water and sewer charges automatically become a lien against the property as soon as service is provided; even if you aren’t the one currently living there (a lien is a legal claim placed on your property when certain bills go unpaid). That means the property owner is always responsible for paying outstanding utility charges, including any left behind by a previous owner.

Once a lien is added to your property, it can affect your ability to sell, refinance, or transfer ownership until it’s paid off.

How Unpaid Water & Sewer Bills Become a Lien

Here’s how the process typically works in Kalamazoo:

  • 0–28 days | Original Bill Period: Your utility bill is due within this window.
  • 28–45 days | Past Due: If not paid, your bill becomes past due and you will start receiving reminder notices.
  • 45–60 days | Shutoff Notice Period: You’ll receive warning notices letting you know your account is approaching shutoff or other action.
  • After 60 days | Delinquent: At this point, the account is officially delinquent and may begin moving toward the lien process.

Under Michigan law (PA 178), unpaid water and sewer charges automatically become a lien on the property once service is provided. If they’re not paid, they are eventually added to the property tax bill.

How the Balance Gets Added to Property Taxes

If the balance remains unpaid, it may be transferred to your property taxes, which can make it more expensive and harder to resolve later. The timing depends on where you live:

Cities & Villages

  • Delinquent balances as of November 1 can be added to the next summer property tax bill.
  • A lien notice is sent in March.
  • If still unpaid, the balance is sent to the tax roll in May as a tax lien.

Townships

  • Delinquent balances as of May 1 can be added to the next winter property tax bill.
  • A lien notice is sent in September.
  • If still unpaid, the balance is sent to the tax roll in November as a tax lien.

Once added to your taxes, the unpaid utility bill becomes part of your delinquent property taxes and is handled by the tax collecting authority.

What Happens If Bills Go Unpaid for Too Long?

If utility charges are rolled into your property taxes and you still don’t pay, the situation becomes more serious:

  • Your property tax balance grows with penalties and interest.
  • Unpaid taxes can lead to tax foreclosure.
  • In extreme cases, this could result in losing your property.

The longer you wait, the harder (and more expensive) it becomes to resolve.

Why Paying On Time Matters

We know it’s not always easy to keep up with bills. But paying your water and sewer bill on time helps you:

  • Avoid extra fees and penalties
  • Prevent your balance from being added to your property taxes
  • Protect your home or property from legal and financial risk
  • Keep essential services running smoothly

If you’re struggling to pay, reach out to customer service as soon as possible. There may be payment options or resources available to help.

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