September 13, 2017, Introduced by Rep. Kosowski and referred to the Committee on Tax Policy.
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 who, in the
judgment of the supervisor and board of review, by reason of
poverty, are 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
must do all of the following on an annual basis:
(a) Be an owner of and occupy as a principal residence the
property for which an exemption is requested.
(b) File a claim with the supervisor or board of review on a
form provided by the local assessing 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 1 of the
following:
(i) The federal
poverty guidelines updated annually in the
federal
register by the United States department of health and
human
services under authority of section 673 of subtitle B of
title
VI of the omnibus budget reconciliation act of 1981, Public
Law
97-35, 42 USC 9902, or alternative
guidelines adopted by the
governing body of the local assessing unit provided the alternative
guidelines do not provide income eligibility requirements less than
the federal guidelines.
(ii) If the person is a disabled or elderly person, establish
that the person has a household income that is at or below 175% of
the federal poverty guidelines or at or below 175% of the
alternative guidelines described in subparagraph (i).
(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 unit shall
determine and make available to the public the policy and
guidelines the local assessing unit uses for the granting of
exemptions
under this section. The guidelines shall must include
but 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 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) 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.
(7)
As used in this section: , "principal
(a) "Disabled person" and "elderly person" mean those terms as
defined in section 7d.
(b) "Federal poverty guidelines" means the poverty guidelines
published annually in the Federal Register by the United States
Department of Health and Human Services under its authority to
revise the poverty line under 42 USC 9902.
(c) "Principal residence" means principal residence or
qualified agricultural property as those terms are defined in
section 7dd.