Bill Text: MI SB0059 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Property tax; exemptions; freeze of taxable value for primary residences of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7xx.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-01-24 - Referred To Committee On Finance [SB0059 Detail]

Download: Michigan-2019-SB0059-Introduced.html

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SENATE BILL No. 59

 

 

January 24, 2019, Introduced by Senator CHANG and referred to the Committee on Finance.

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

(MCL 211.1 to 211.155) by adding section 7xx.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7xx. (1) For taxes levied after December 31, 2019, real

 

property used as an individual's primary residence is partially

 

exempt from the collection of taxes under this act in the amount

 

calculated under subsection (2) if all of the following conditions

 

are met:

 

     (a) The real property is owned by the individual, the

 

individual's spouse, or the individual's or his or her spouse's

 

mother, father, brother, sister, son, daughter, adopted son,

 

adopted daughter, grandson, or granddaughter.

 

     (b) Either of the following:

 

     (i) The individual is at least 63 years of age and has

 

continuously used the property as his or her primary residence for

 

at least the immediately preceding 10 years.

 

     (ii) The individual has continuously used the property as his

 

or her primary residence for at least the immediately preceding 30

 

years.

 

     (c) For the current tax year, the total gross income of the

 

individual and all those who are members of his or her household is

 

not greater than $40,000.00.

 

     (2) The amount of the exemption under subsection (1) is the

 

taxable value of the primary residence in the current tax year

 

minus the base amount.

 

     (3) When married persons maintain separate primary residences,

 

the exemption provided for in this section may be claimed by only

 

one of them and for only one primary residence.

 

     (4) The department of treasury shall promulgate rules to

 

implement this section pursuant to the administrative procedures

 

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (5) As used in this section:

 

     (a) "Additions" means that term as defined in section 34d.

 

     (b) "Base amount" means the taxable value of a primary

 

residence in the base year minus all losses and plus all additions

 

since that year.

 

     (c) "Base year" means the tax year for which the exemption

 

claimant first qualifies and applies for the exemption under this

 

section. However, if in any subsequent tax year for which the

 

exemption claimant applies and qualifies for the exemption the

taxable value of the primary residence is less than the taxable

 

value in the existing base year, then that subsequent tax year

 

becomes the base year unless the taxable value for the subsequent

 

tax year results from a temporary irregularity in the property that

 

reduces the taxable value for 1 or more years.

 

     (d) "Gross income" means that term as defined in section 12 of

 

the income tax act of 1967, 1967 PA 281, MCL 206.12.

 

     (e) "Losses" means that term as defined in section 34d.

 

     (f) "Taxable value" means the taxable value as determined

 

under section 27a.