SENATE BILL NO. 846

January 25, 2022, Introduced by Senator SANTANA and referred to the Committee on Finance.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7b (MCL 211.7b), as amended by 2013 PA 161.

the people of the state of michigan enact:

Sec. 7b. (1) Real property used and owned as a homestead by a disabled veteran who was discharged from the armed forces Armed Forces of the United States under honorable conditions or by an individual described in subsection (2) is exempt from the collection of taxes under this act. To Except as otherwise provided in subsection (3), to obtain the exemption, the property owner or his or her legal designee shall file an affidavit showing the facts required by this section and a description of the real property shall be filed by the property owner or his or her legal designee with the supervisor or other assessing officer during the period beginning with the tax day for each year and ending at the time of the final adjournment of the local board of review. The affidavit when filed shall be is open to inspection. The county treasurer shall cancel taxes subject to collection under this act for any year in which a disabled veteran eligible for the exemption under this section has acquired title to real property exempt under this section. Upon granting the exemption under this section, each local taxing unit shall bear the loss of its portion of the taxes upon which the exemption has been granted.

(2) If a disabled veteran who is otherwise eligible for the exemption under this section dies, either before or after the exemption under this section is granted, the exemption shall remain remains available to or shall continue continues for his or her unremarried surviving spouse. The surviving spouse shall comply with the requirements of subsection (1) and shall indicate on the affidavit that he or she is the surviving spouse of a disabled veteran entitled to the exemption under this section. The exemption shall continue continues as long as the surviving spouse remains unremarried.

(3) Both of the following apply to an exemption granted under this section to an individual who qualifies as a disabled veteran under subsection (4)(a):

(a) The exemption is effective as to taxes levied in the tax year in which the exemption was first granted, and the exemption remains in effect, without reapplication, until the expiration of the tax year in which the property ceases to be eligible for the exemption on the basis of that individual qualifying as a disabled veteran under subsection (4)(a).

(b) An owner of property that ceases to be eligible for the exemption as described in subdivision (a), or his or her legal designee, shall do 1 of the following, as applicable:

(i) If the property is not eligible for the exemption under this section on another basis provided in this section, rescind the exemption in a form and manner prescribed by the state tax commission not later than 30 days after the property ceases to be eligible for the exemption.

(ii) If the property is eligible for the exemption under this section on another basis provided in this section, such as the basis provided under subsection (2), apply for the exemption on an annual basis, as described in subsection (1).

(4) (3) As used in this section, "disabled veteran" means a person veteran who is a resident of this state and who meets 1 of the following criteria:

(a) Has been determined by the United States department of veterans affairs Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate.

(b) Has a certificate from the United States veterans' administration, or its successors, Department of Veterans Affairs certifying that he or she is receiving or has received pecuniary assistance due to disability for specially adapted housing.

(c) Has been rated by the United States department of veterans affairs Department of Veterans Affairs as individually unemployable.