Bill Text: MI HB5759 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Taxation; specific tax; specific tax on certain homesteads of disabled veterans and their surviving spouses; provide for. Creates new act. TIE BAR WITH: HB 5758'18
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-04-11 - Bill Electronically Reproduced 04/10/2018 [HB5759 Detail]
Download: Michigan-2017-HB5759-Introduced.html
HOUSE BILL No. 5759
April 10, 2018, Introduced by Rep. Lucido and referred to the Committee on Tax Policy.
A bill to provide for the exemption of certain property from
certain taxes; to levy and collect a specific tax upon the owners
of certain property; to provide for the disposition of the tax; to
prescribe the powers and duties of certain local government
officials; and to provide penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"disabled veteran's homestead specific tax act".
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Eligible disabled veteran" means an individual who is a
resident of this state, was discharged from the United States Armed
Forces under honorable conditions, and meets 1 of the following
criteria:
(i) Has been determined by the United States Department of
Veterans Affairs to be permanently disabled as a result of military
service and entitled to veterans' benefits because of that
disability.
(ii) Has a certificate from the United States Department of
Veterans Affairs certifying that he or she is receiving or has
received pecuniary assistance due to disability for specially
adapted housing.
(iii) Has been rated by the United States Department of
Veterans Affairs as individually unemployable.
(c) "Eligible surviving spouse of a disabled veteran" means an
individual who was married to an eligible disabled veteran at the
time of the eligible disabled veteran's death and who has since
remained unmarried.
(d) "Principal residence" means that term as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
(e) "Taxable value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
Sec. 3. For taxes levied after December 31, 2017, real
property used and owned as a homestead by an eligible disabled
veteran or by an eligible surviving spouse of a disabled veteran is
exempt from ad valorem property taxes collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, as provided
under section 7xx of the general property tax act, 1893 PA 206, MCL
211.7xx.
Sec. 4. The assessor of each local tax collecting unit in
which there is real property used and owned as a homestead by an
eligible disabled veteran or eligible surviving spouse of a
disabled veteran shall determine annually as of December 31 the
value and taxable value of that real property.
Sec. 5. (1) There is levied upon real property used and owned
as a homestead by an eligible disabled veteran or by an eligible
surviving spouse of a disabled veteran a specific tax to be known
as the disabled veteran's homestead specific tax.
(2) The amount of the disabled veteran's homestead specific
tax in each year shall be determined as follows:
(a) Multiply the number of mills that would be assessed in the
local tax collecting unit if the real property used and owned as a
homestead by the eligible disabled veteran or the eligible
surviving spouse of a disabled veteran were subject to the
collection of taxes under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, by the property's taxable value. For
purposes of this calculation, to the extent that the real property
used and owned as a homestead by the eligible disabled veteran or
the eligible surviving spouse of a disabled veteran was that
individual's principal residence, he or she may claim an exemption
for that portion of the specific tax attributable to the tax levied
by a local school district for school operating purposes as
provided under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, if he or she claims or has claimed an exemption
for the property as provided in section 7cc of the general property
tax act, 1893 PA 206, MCL 211.7cc.
(b) Discount the result of the calculation in subdivision (a)
by 1 of the following, as applicable:
(i) 100%, if the exemption under section 3 is based on the
disability of an individual who qualified as an eligible disabled
veteran under section 2(b)(ii) or (iii).
(ii) 100%, if the exemption under section 3 is based on the
disability of an individual who qualified as an eligible disabled
veteran under section 2(b)(i) and the United States Department of
Veterans Affairs determined that the severity rating of the
individual's disability is 100%.
(iii) The severity rating of the individual's disability,
expressed as a percentage by the United States Department of
Veterans Affairs, if the exemption under section 3 is based on the
disability of an individual who qualified as an eligible disabled
veteran under section 2(b)(i) and the United States Department of
Veterans Affairs determined that the severity rating of the
individual's disability is less than 100%.
(3) The disabled veteran's homestead specific tax is an annual
tax, payable at the same times, in the same installments, and to
the same collecting officer or officers as taxes collected under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(4) The collecting officer or officers shall disburse the
disabled veteran's homestead specific tax to and among this state
and cities, townships, villages, school districts, counties, or
other taxing units, at the same times and in the same proportions
as required by law for the disbursement of taxes collected under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(5) The collecting officer or officers shall send a copy of
the amount of disbursement made to each taxing unit under this
section to the commission on a form provided by the commission.
Sec. 6. Unpaid disabled veteran's homestead specific taxes are
subject to forfeiture, foreclosure, and sale in the same manner and
at the same time as taxes returned as delinquent under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
Enacting section 1. This act does not take effect unless
Senate Bill No. ____ or House Bill No. 5758 (request no. 05982'18
a) of the 99th Legislature is enacted into law.
