Bill Text: MI HB5160 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Property tax; exemptions; poverty exemption; revise. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-10-25 - Bill Electronically Reproduced 10/24/2017 [HB5160 Detail]

Download: Michigan-2017-HB5160-Introduced.html

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HOUSE BILL No. 5160

 

 

October 24, 2017, Introduced by Rep. Byrd and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 7u (MCL 211.7u), as amended by 2012 PA 135.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7u. (1) The principal residence of persons who, in the

 

judgment of the supervisor and board of review, by reason of

 

poverty, are unable to contribute toward the public charges is

 

eligible for exemption in whole or in part from taxation under this

 

act. This section does not apply to the property of a corporation.

 

     (2) To be eligible for exemption under this section, a person

 

shall, subject to subsection (5), do all of the following on an

 

annual basis:

 

     (a) Be an owner of and occupy as a principal residence the

 

property for which an exemption is requested. The person shall

 

affirm this ownership and occupancy status in writing by filing a

 

form prescribed by the state tax commission with the local

 

assessing unit.

 

     (b) File a claim with the supervisor or board of review on a

 

form provided by the local assessing unit, accompanied by federal

 

and state income tax returns for all persons residing in the

 

principal residence, including any property tax credit returns,

 

filed in the immediately preceding year or in the current year.

 

Federal and state income tax returns are not required for a person

 

residing in the principal residence if that person was not required

 

to file a federal or state income tax return in the tax year in

 

which the exemption under this section is claimed or in the

 

immediately preceding tax year. If a person was not required to

 

file a federal or state income tax return in the tax year in which

 

the exemption under this section is claimed or in the immediately

 

preceding tax year, an affidavit in a form prescribed by the state

 

tax commission may be accepted in place of the federal or state

 

income tax return. The filing of a claim under this subsection

 

constitutes an appearance before the board of review for the

 

purpose of preserving the claimant's right to appeal the decision

 

of the board of review regarding the claim.

 

     (c) Produce a valid driver's driver license or other form of

 

identification if requested by the supervisor or board of review.

 

     (d) Produce a deed, land contract, or other evidence of

 

ownership of the property for which an exemption is requested if

 

required by the supervisor or board of review.

 

     (e) Meet the federal poverty guidelines updated annually in

the federal register Federal Register by the United States

 

department of health and human services Department of Health and

 

Human Services under authority of section 673 of subtitle B of

 

title VI of the omnibus budget reconciliation act of 1981, Public

 

Law 97-35, 42 USC 9902 , or alternative guidelines adopted by the

 

governing body of the local assessing unit provided the alternative

 

guidelines do not provide income eligibility requirements less than

 

the federal guidelines.

 

     (3) The application for an exemption under this section shall

 

be filed after January 1 but before the day prior to the last day

 

of the board of review.

 

     (4) The governing body of the local assessing unit shall

 

determine and make available to the public the policy and

 

guidelines the local assessing unit uses for the granting of

 

exemptions under this section. The guidelines shall include but not

 

be limited to the specific income and asset levels of the claimant

 

and total household income and assets.

 

     (5) The board of review shall follow the policy and guidelines

 

of the local assessing unit in granting or denying an exemption

 

under this section unless the board of review determines there are

 

substantial and compelling reasons why there should be a deviation

 

from the policy and guidelines and the substantial and compelling

 

reasons are communicated in writing to the claimant. The board of

 

review may grant an exemption under this section for any of the

 

following years in which the applicant is or was qualified for the

 

exemption under the eligibility requirements set forth in

 

subsection (2):

     (a) The current year.

 

     (b) Any of the immediately preceding 3 years. However, an

 

applicant who is eligible for an exemption under this section in a

 

preceding year is not entitled to a refund for any property taxes

 

collected under this act on the eligible property for that year.

 

     (6) A person who files a claim under this section is not

 

prohibited from also appealing the assessment on the property for

 

which that claim is made before the board of review in the same

 

year.

 

     (7) As used in this section, "principal residence" means

 

principal residence or qualified agricultural property as those

 

terms are defined in section 7dd.