HOMESTEAD TAX CREDIT: AG PROP. H.B. 4990:
FLOOR SUMMARY
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House Bill 4990 (as reported without amendment)
Sponsor: Representative Jud Gilbert, II
House Committee: Tax Policy
Senate Committee: Finance
CONTENT
The bill would amend the Income Tax Act to exclude agricultural property from the calculation of a homestead's taxable value, for purposes of eligibility for the homestead property tax credit.
Section 520 of the Act allows an eligible taxpayer to claim an income tax credit for a portion of the property taxes on his or her homestead. Under amendments to Section 520 that will take effect on January 1, 2012, a taxpayer may not claim the credit for a tax year in which the taxable value of his or her homestead is more than $135,000.
The bill would exclude from the taxable value of a homestead the portion of a parcel that is unoccupied and classified as agricultural for ad valorem tax purposes.
The bill would take effect on January 1, 2012.
MCL 206.520 Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
According to estimates from the Michigan Department of Treasury, the bill would reduce income tax revenue by approximately $3.0 million to $3.5 million per year.
Date Completed: 12-7-11 Fiscal Analyst: David Zin
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4990/1112