October 29, 2008, Introduced by Rep. LeBlanc 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 519.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 519. (1) For the 2008 tax year and each tax year after
2008, a taxpayer that is a resident individual who purchases a
qualified principal residence after May 1 of the tax year may claim
a credit against the tax imposed by this act equal to the
difference between the amount paid for property taxes collected
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, on that qualified principle residence during the tax year
and the amount that would have been paid for property taxes
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155, if an exemption had been claimed under section
7cc of the general property tax act, 1893 PA 206, MCL 211.7cc.
(2) If the credit allowed under this section for the tax year
exceeds the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded.
(3) If the taxpayer disposes of the qualified principal
residence for which a credit under this section was claimed within
2 years after the year in which the credit was claimed or fails to
occupy the qualified principal residence as the taxpayer's
principal residence for which a credit under this section was
claimed within 2 years after the year in which the credit was
claimed the amount of the credit claimed shall be added back to the
tax liability of the taxpayer in the tax year that the taxpayer
disposes of the property or fails to occupy the residence as his or
her principal residence.
(4) As used in this section:
(a) "Eligible single-family residence" means a single-family
structure that is a residence upon which foreclosure has been filed
pursuant to the laws of this state and that satisfies either of the
following:
(i) Is a new previously unoccupied residence for which a
building permit was issued and construction began on or before
September 1, 2007.
(ii) Was occupied as a principal residence by the mortgagor for
at least 1 year prior to the foreclosure filing.
(b) "Principal residence" means that term as defined under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
(c) "Qualified principal residence" means an eligible single-
family residence that is purchased to be the principal residence of
the purchaser.