May 22, 2008, Introduced by Reps. Tobocman, Byrnes, Hopgood, Scott, Accavitti, Melton, Ball, Johnson, Miller, Leland, Robert Jones, Sak, Jackson, Kathleen Law, Condino, Alma Smith, Bennett, Bieda, Gonzales, Farrah, Dean, Polidori, Bauer, Meadows and Clemente and referred to the Committee on Intergovernmental, Urban and Regional Affairs.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7nn; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7nn. (1) The principal residence of a qualified taxpayer
is eligible for exemption from the collection of taxes under this
act as provided in this section. This section does not apply to the
property of a corporation.
(2) The application and renewal affidavit for an exemption
under this section shall be in a form prescribed by the department
of treasury. The department of treasury shall design the
application and renewal affidavit to ensure uniformity, clarity,
simplicity, and ease of use by applicants.
(3) The application for an exemption under this section shall
be filed after January 1 but before the day prior to the last day
of the board of review. If a qualified taxpayer is granted an
exemption under this section for a tax year, that qualified
taxpayer may submit a renewal affidavit to claim an exemption in
the immediately succeeding tax year.
(4) If a qualified taxpayer is eligible for an exemption under
this section, the board of review shall grant the exemption for the
tax year in which the application is filed and the immediately
preceding tax year if the qualified taxpayer would have been
eligible for an exemption under this section if the qualified
taxpayer had claimed an exemption under this section. If a
qualified taxpayer is eligible for an exemption under this section
and the board of review grants the exemption for the immediately
preceding tax year, any exempted and unpaid taxes, interest,
penalties, and fees for the immediately preceding tax year for
which the exemption is granted shall be extinguished.
(5) The exemption under this section shall be applied as
follows:
(a) If the person claiming the exemption under this section is
a qualified taxpayer through application of the household income
requirement set forth in subsection (9)(b)(v)(A), 100% of the
taxable value of the principal residence.
(b) If the person claiming the exemption under this section is
a qualified taxpayer through application of the household income
requirement set forth in subsection (9)(b)(v)(B), 50% of the taxable
value of the principal residence.
(6) The governing body of the local tax collecting unit shall
make available to the public the eligibility requirements for the
exemption under this section and application forms and renewal
affidavits. If a qualified taxpayer is granted an exemption under
this section for a tax year, the local tax collecting unit shall
mail a renewal affidavit to that qualified taxpayer in the
immediately succeeding tax year. The local tax collecting unit
shall publish notice of the availability of, and the eligibility
requirements for, the exemption under this section in a newspaper
of general circulation within the local tax collecting unit.
(7) The board of review may deny an exemption under this
section for 1 or more of the following reasons:
(a) The board of review determines that the person claiming
the exemption is not a qualified taxpayer.
(b) The board of review determines that the claim for
exemption is based on fraud.
(c) The board of review determines that the qualified taxpayer
claiming the exemption under this section has no interest in the
property for which an exemption is claimed and the claim for
exemption is an attempt to avoid the collection of taxes under this
act.
(d) The state equalized valuation of the principal residence
for which an exemption is claimed under this section is 200% or
more greater than the median value of a principal residence in the
local tax collecting unit.
(8) Filing an application for exemption or a renewal affidavit
under this subsection is an appearance before the board of review
and preserves the applicant's right to appeal the decision of the
board of review regarding the claim for exemption. A qualified
taxpayer who files an application for exemption or a renewal
affidavit under this section may also appeal the assessment on the
property for which the exemption is claimed before the board of
review in the same tax year.
(9) As used in this section:
(a) "Principal residence" means principal residence or
qualified agricultural property as those terms are defined in
section 7dd.
(b) "Qualified taxpayer" means a person who meets all of the
following requirements:
(i) Owns and occupies as a principal residence the property for
which an exemption is claimed.
(ii) Files an application for exemption with the supervisor or
board of review, 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 tax year or in the current tax year.
(iii) Produces a valid driver license, state personal
identification card, or other form of identification, if requested
by the supervisor or board of review.
(iv) Produces a deed, land contract, or other evidence of
ownership of the property for which an exemption is requested, if
requested by the supervisor or board of review.
(v) Has household income that meets 1 of the following
requirements:
(A) Is 200% or less of the federal 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.
(B) Is not greater than alternative income guidelines adopted
by the governing body of the local tax collecting unit. Alternative
income guidelines shall not provide an income eligibility
requirement that is less than the income eligibility requirement
set forth in sub-subparagraph (A).
(vi) A local tax collecting unit may establish an asset level
as a criterion for exemption under this section. If the local tax
collecting unit has established an asset level as a criterion for
exemption under this section, the asset level of the person
claiming an exemption under this section does not exceed that asset
level. A local tax collecting unit shall not consider any of the
following in calculating the asset level of a person claiming an
exemption under this section:
(A) The state equalized valuation of the principal residence
of the person claiming an exemption under this section.
(B) Any individual item of tangible personal property with a
value of less than $5,000.00, excluding cash, stocks, bonds, and
similar items of value.
(C) Cash, stocks, bonds, and similar items of value with an
aggregate value of less than $5,000.00.
(c) "Household income" means that term as defined in section
508 of the income tax act of 1967, 1967 PA 281, MCL 206.508.
Enacting section 1. Section 7u of the general property tax
act, 1893 PA 206, MCL 211.7u, is repealed.