Bill Text: MI SB1170 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: exemptions; application process for poverty exemption; modify. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-10-01 - Referred To Committee On Finance [SB1170 Detail]
Download: Michigan-2019-SB1170-Introduced.html
SENATE BILL NO. 1170
October 01, 2020, Introduced by Senator CHANG
and referred to the Committee on Finance.
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 a person who, in the judgment of the supervisor and
board of review, by reason of poverty, are
is unable to contribute toward
the public charges is eligible for exemption in whole or in part from taxation the
collection of taxes 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 (6), do all of the following on an annual
basis:
(a) Be an owner of Own 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 tax collecting unit.
(b) File a claim
with the supervisor or board of review on a form provided by the local assessing tax
collecting 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 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 published annually in the federal
register Federal Register by
the United States department Department of health
Health and human services Human Services under its
authority of section 673 of subtitle B
of title VI of the omnibus budget reconciliation act of 1981, Public Law 97-35,
to revise the poverty line under 42
USC 9902, or alternative guidelines adopted by the governing body of the local assessing tax
collecting 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
must 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 tax collecting unit shall determine and make
available to the public the policy and guidelines the
local assessing unit uses used
for the granting of exemptions under this section. The guidelines
shall must
include but are 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 tax
collecting 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.
(6) Notwithstanding any provision of
this section to the contrary, subject to subsection (7), a local tax collecting
unit may permit a principal residence exempt from the collection of taxes under
this section to remain exempt under this section for up to 3 years after the
year for which the exemption was initially granted, without subsequent
reapplication for the exemption, if the person who establishes initial
eligibility under subsection (2) meets either of the following:
(a) Receives a fixed income solely
from public assistance that is not subject to significant annual increases
beyond the rate of inflation, such as federal Supplemental Security Income or
Social Security disability or retirement benefits.
(b) Has 1 of the following:
(i) A permanent physical or mental disability, as determined
under federal or state guidelines, that substantially impedes his or her
activities of daily living.
(ii) A disability, as that term is defined in
section 216 of title II of the social security act, 42 USC 416, that
substantially impedes his or her activities of daily living.
(7) Both of the following apply to a
person who obtains the extended exemption described in subsection (6):
(a) The person shall file with the
local tax collecting unit, in a form and manner prescribed by the state tax
commission, an affidavit rescinding the exemption as extended under subsection
(6) within 30 days after either of the following, if applicable:
(i) The person ceases to own or occupy the
principal residence for which the exemption was extended.
(ii) The person experiences a change in household
assets or income that defeats eligibility for the exemption under subsection
(2).
(b) If the person fails to file a rescission
as required under subdivision (a) and the property is later determined to be
ineligible for the exemption under this section, the person is subject to
repayment of any additional taxes with interest as described in this subdivision.
Upon discovery that the property is no longer eligible for the exemption under
this section, the assessor shall remove the exemption of that property and, if
the tax roll is in the local tax collecting unit's possession, amend the tax
roll to reflect the removal of the exemption, and the local treasurer shall,
within 30 days of 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 of 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 the March 1 in the year immediately succeeding the year in which
the corrected or supplemental tax bill is issued.
(8) (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.
(9) (7) As used in this section, "principal residence" means principal residence or qualified agricultural property as those terms are defined in section 7dd.
