HOUSE BILL No. 5393 February 17, 2000, Introduced by Reps. Gilbert, Cassis, Julian, Bisbee, Faunce, Hager, Woronchak, Kowall, Toy, DeRossett, Richardville, Van Woerkom, Bradstreet, Vander Roest, Shackleton, Caul, Howell, Law, Garcia and Cameron Brown and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 522 (MCL 206.522), as amended by 1996 PA 484. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 522. (1) The amount of a claim made pursuant to this 2 chapter shall be determined as follows: 3 (a) A claimant is entitled to a credit against the state 4 income tax liability equal to 60% of the amount by which the 5 property taxes on the homestead, or the credit for rental of the 6 homestead for the tax year, exceeds 3.5% of the claimant's house- 7 hold income for that tax year. 8 (b) A claimant who is a senior citizen or a paraplegic, 9 hemiplegic, or quadriplegic AND FOR TAX YEARS THAT BEGIN AFTER 10 DECEMBER 31, 1999, A CLAIMANT WHO IS TOTALLY AND PERMANENTLY 05828'00 RJA 2 1 DISABLED OR DEAF is entitled to a credit against the state income 2 tax liability for the amount by which the property taxes on the 3 homestead, the credit for rental of the homestead, or a service 4 charge in lieu of ad valorem taxes as provided by section 15a of 5 the state housing development authority act of 1966,Act No. 3466of the Public Acts of 1966, being section 125.1415a of the7Michigan Compiled Laws1966 PA 346, MCL 125.1415A, for the tax 8 year exceeds the percentage of the claimant's household income 9 for that tax year computed as follows: 10 11 Household income Percentage 12 Not over $3,000.00 .0% 13 Over $3,000.00 but not over $4,000.00 1.0% 14 Over $4,000.00 but not over $5,000.00 2.0% 15 Over $5,000.00 but not over $6,000.00 3.0% 16 Over $6,000.00 3.5% 17 (c)AFOR A TAX YEAR THAT BEGINS BEFORE JANUARY 1, 2000, A 18 claimant who is totally and permanently disabled is entitled to a 19 credit against the state income tax liability equal to 60% of the 20 amount by which the property taxes on the homestead, or the 21 credit for rental of the homestead or for a service charge in 22 lieu of ad valorem taxes as provided in section 15a ofAct23No. 346 of the Public Acts of 1966THE STATE HOUSING DEVELOPMENT 24 AUTHORITY ACT OF 1966, 1966 PA 346, MCL 125.1415A, for the tax 25 year, exceeds the percentage of the claimant's household income 26 for that tax year based on the schedule in subdivision (b). 05828'00 3 1 (d) A claimant who is an eligible serviceperson, eligible 2 veteran, or eligible widow or widower is entitled to a credit 3 against the state income tax liability for a percentage of the 4 property taxes on the homestead for the tax year not in excess of 5 100% determined as follows: 6 (i) Divide the taxable value allowance specified in section 7 506 by the taxable value of the homestead or, if the eligible 8 serviceperson, eligible veteran, or eligible widow or widower 9 leases or rents a homestead, divide 17% of the total annual rent 10 paid for tax years before the 1994 tax year, or 20% of the total 11 annual rent paid for tax years after the 1993 tax year on the 12 property by the property tax rate on the property. 13 (ii) Multiply the property taxes on the homestead by the 14 percentage computed in subparagraph (i). 15 (e) A claimant who is blind is entitled to a credit against 16 the state income tax liability for a percentage of the property 17 taxes on the homestead for the tax year determined as follows: 18 (i) If the taxable value of the homestead is $3,500.00 or 19 less, 100% of the property taxes. 20 (ii) If the taxable value of the homestead is more than 21 $3,500.00, the percentage that $3,500.00 bears to the taxable 22 value of the homestead. 23 (2) A person who is qualified to make a claim under more 24 than 1 classification shall elect the classification under which 25 the claim is made. 05828'00 4 1 (3) Only 1 claimant per household for a tax year is entitled 2 to the credit, unless both the husband and wife filing a joint 3 return are blind, then each shall be considered a claimant. 4 (4) As used in this section, "totally and permanently 5 disabled" means disability as defined in section 216 of title II 6 of the social security act, 42 U.S.C. 416. 7 (5) A senior citizen who has a total household income for 8 the tax year of $6,000.00 or less and who for 1973 received a 9 senior citizen homestead exemption under former section 7c of the 10 general property tax act, Act No. 206 of the Public Acts of 1893, 11 may compute the credit against the state income tax liability for 12 a percentage of the property taxes on the homestead for the tax 13 year determined as follows: 14 (a) If the taxable value of the homestead is $2,500.00 or 15 less, 100% of the property taxes. 16 (b) If the taxable value of the homestead is more than 17 $2,500.00, the percentage that $2,500.00 bears to the taxable 18 value of the homestead. 19 (6) For a return of less than 12 months, the claim shall be 20 reduced proportionately. 21 (7) The commissioner may prescribe tables that may be used 22 to determine the amount of the claim. 23 (8) The total credit allowed in this section for each year 24 after December 31, 1975 shall not exceed $1,200.00 per year. 25 (9) The total credit allowable under this act and part 361 26(farmland and open space preservation)of the natural resources 27 and environmental protection act,Act No. 451 of the Public Acts05828'00 5 1of 1994, being sections 324.36101 to 324.36117 of the Michigan2Compiled Laws1994 PA 451, MCL 324.36101 TO 324.36117, shall not 3 exceed the total property tax due and payable by the claimant in 4 that year. The amount by which the credit exceeds the property 5 tax due and payable shall be deducted from the credit claimed 6 under part 361 ofAct No. 451 of the Public Acts of 1994THE 7 NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT, 1994 PA 451, 8 MCL 324.36101 TO 324.36117. 05828'00 Final page. RJA