HB-5178, As Passed Senate, May 1, 2012
November 29, 2011, Introduced by Reps. Tlaib, Liss, Howze, Hobbs, Geiss, Ananich, Cavanagh, Santana, Jackson, Stapleton, Olumba, Barnett, Heise, Irwin, Wayne Schmidt, Foster, Constan, Meadows and Oakes 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 2003 PA 140.
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 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 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 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
U.S.C. 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.
(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.
(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 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
(7) As used in this section, "principal residence" means
principal residence or qualified agricultural property as those
terms are defined in section 7dd.