Bill Text: MI SB0176 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Property tax: exemptions; filing requirements for disabled veteran exemption and provisions concerning eligibility of surviving spouses; modify. Amends sec. 7b of 1893 PA 206 (MCL 211.7b). TIE BAR WITH: SB 0330'23
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-24 - Assigned Pa 0150'23 With Immediate Effect [SB0176 Detail]
Download: Michigan-2023-SB0176-Introduced.html
SENATE BILL NO. 176
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7b (MCL 211.7b), as amended by 2013 PA 161.
The people of the state of michigan enact:
Sec. 7b. (1) Real property used and owned as a homestead by a disabled veteran who was discharged from the armed forces of the United States under honorable conditions or by an individual described in subsection (2) any of the following individuals is exempt from the collection of taxes under this act: .
(a) A disabled veteran.
(b) A surviving spouse of a disabled veteran who, immediately before death, was eligible for the exemption under this section. An exemption under this subdivision continues as long as the surviving spouse does not remarry, and the exemption applies to any property used and owned as a homestead by the surviving spouse, including homestead property acquired after the decedent's death.
(2) To obtain the exemption, an individual described in subsection (1)(a) or (b), or the individual's legal designee, must file an affidavit application, in a form and manner prescribed by the state tax commission, showing the facts required by this section and a description of the real property shall be filed by the property owner or his or her legal designee with the supervisor or other assessing officer during the period beginning with the tax day for each year and ending at the time of the final adjournment of the local board of review. for the local assessing unit after January 1 and before December 31 of the calendar year for which the exemption is claimed. The affidavit application when filed shall be is open to inspection. The county treasurer shall cancel taxes subject to collection under this act for any year in which a disabled veteran an individual described in subsection (1)(a) or (b) who is eligible for the exemption under this section has acquired title to real property exempt under this section. Upon granting the exemption under this section, each local taxing unit shall bear the loss of its portion of the taxes upon which the exemption has been granted.
(2) If a disabled veteran who is otherwise eligible for the exemption under this section dies, either before or after the exemption under this section is granted, the exemption shall remain available to or shall continue for his or her unremarried surviving spouse. The surviving spouse shall comply with the requirements of subsection (1) and shall indicate on the affidavit that he or she is the surviving spouse of a disabled veteran entitled to the exemption under this section. The exemption shall continue as long as the surviving spouse remains unremarried.
(3) An exemption granted under this section remains in effect, without subsequent reapplication, until it is rescinded by the individual who was granted the exemption or is denied by the assessor, as follows:
(a) The individual shall file with the local assessing unit, in a form and manner prescribed by the state tax commission, a form rescinding the exemption within 45 days after either of the following:
(i) The individual ceases to own or occupy the property for which the exemption was granted.
(ii) The individual no longer meets the qualifications under this section to receive the exemption.
(b) A local assessing unit must develop and implement an audit program that includes, but is not limited to, the audit of all information filed under subsection (2). If property is determined to be ineligible for exemption as a result of an audit, the individual who was granted the exemption under this section is subject to repayment of additional taxes including interest to be paid as provided in subdivisions (c) and (d).
(c) The assessor may deny a new claim, or an existing claim following an audit, as further provided in subdivision (d).
(d) The assessor shall, in a form and manner prescribed by the state tax commission, notify the individual of the denial of the new or existing claim, the reason for the denial, and that the denial may be appealed to the residential and small claims division of the tax tribunal within 35 days after the date of the notice. The assessor may deny a claim for exemption for the current year and for the 3 immediately preceding calendar years. If the tax roll is in the local tax collecting unit's possession, it shall amend the tax roll to reflect the removal of the exemption, and the local treasurer shall, within 30 days after the date of the discovery, issue a corrected tax bill for any additional taxes with interest at the rate of 1% per month or fraction of a month computed from the date the taxes were last payable without interest. If the tax roll is in the county treasurer's possession, the tax roll must be amended to reflect the removal of the exemption and the county treasurer shall, within 30 days after the date of the removal, prepare and submit a supplemental tax bill for any additional taxes, together with interest at the rate of 1% per month or fraction of a month computed from the date the taxes were last payable without interest. Interest on any tax set forth in a corrected or supplemental tax bill again begins to accrue 60 days after the date the corrected or supplemental tax bill is issued at the rate of 1% per month or fraction of a month. Taxes levied in a corrected or supplemental tax bill must be returned as delinquent on March 1 in the year immediately succeeding the year in which the corrected or supplemental tax bill is issued.
(4) (3) As used in this section: , "disabled
(a) "Disabled veteran" means a person veteran who is a resident of this state and who meets 1 of the following criteria:
(i) (a) Has been determined by the United States department of veterans affairs Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate.
(ii) (b) Has a certificate from the United States veterans' administration, or its successors, Department of Veterans Affairs certifying that he or she the veteran is receiving or has received pecuniary assistance due to disability for specially adapted housing.
(iii) (c) Has been rated by the United States department of veterans affairs Department of Veterans Affairs as individually unemployable.
(b) "Veteran" means an individual who served in the United States Armed Forces, including the reserve components, and was discharged or released under conditions other than dishonorable.
