HOUSE BILL No. 6402 September 24, 2002, Introduced by Reps. Kolb and Lipsey and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.532) by adding section 270. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 270. (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2 2003, A TAXPAYER MAY CLAIM A CREDIT EQUAL TO $3,000.00 FOR THE 3 TAX YEAR IN WHICH THE TAXPAYER PURCHASES AN ELIGIBLE HOMESTEAD IF 4 THE TAXPAYER OR BOTH THE TAXPAYER AND HIS OR HER SPOUSE LIVE IN 5 THAT HOMESTEAD AND 1 OF THEM WALKS TO HIS OR HER PRIMARY PLACE OF 6 EMPLOYMENT OR USES PUBLIC TRANSPORTATION TO GET TO AND FROM HIS 7 OR HER PRIMARY PLACE OF EMPLOYMENT. 8 (2) TO CLAIM THAT CREDIT UNDER THIS SECTION, THE TAXPAYER 9 SHALL ATTACH A COPY OF THE CLOSING DOCUMENTS THAT RELATE TO THE 10 HOMESTEAD, THE PURCHASE OF WHICH QUALIFIES THE TAXPAYER FOR THE 06127'01 RJA 2 1 CREDIT UNDER THIS SECTION, TO THE TAX RETURN ON WHICH THE CREDIT 2 IS CLAIMED. 3 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION 4 EXCEEDS THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT 5 PORTION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE 6 REFUNDED. 7 (4) AS USED IN THIS SECTION: 8 (A) "ELIGIBLE HOMESTEAD" MEANS A HOMESTEAD AS DEFINED IN 9 SECTION 7DD OF THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 10 211.7DD, THAT MEETS BOTH OF THE FOLLOWING CRITERIA: 11 (i) IS LOCATED WITHIN 2 MILES OF THE PRIMARY PLACE OF 12 EMPLOYMENT OF THE TAXPAYER OR HIS OR HER SPOUSE. 13 (ii) THE HOMESTEAD IS THE PRIMARY RESIDENCE OF THE TAXPAYER 14 OR BOTH THE TAXPAYER AND HIS OR HER SPOUSE. 15 (B) "PRIMARY PLACE OF EMPLOYMENT" MEANS THE PLACE WHERE THE 16 TAXPAYER OR HIS OR HER SPOUSE IS EMPLOYED FOR AT LEAST 20 HOURS 17 PER WEEK FOR THE PORTION OF THE TAX YEAR DURING WHICH THE TAX- 18 PAYER OR THE TAXPAYER AND HIS OR HER SPOUSE LIVE IN THE ELIGIBLE 19 HOMESTEAD, THE PURCHASE OF WHICH QUALIFIES THE TAXPAYER FOR THE 20 CREDIT UNDER THIS SECTION. 06127'01 Final page. RJA