HOUSE BILL No. 4561


     April 8, 1997, Introduced by Reps. Brown, Gire, Varga, Mans, Palamara, Parks, Richner, Hanley, Callahan, Schermesser, Willard, Goschka, Kelly, Bogardus, Rison, Quarles, Griffin, Brewer, Hale, Harder, Curtis, Dobronski, Olshove, Baird, DeHart, Law, Gagliardi, Murphy, Wojno and Price 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 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1997 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1997 TAX YEAR, A TAXPAYER WHO IS REQUIRED TO PURCHASE FLOOD

 3    INSURANCE BY A MORTGAGE COMPANY THAT HOLDS A MORTGAGE ON THE

 4    TAXPAYER'S HOMESTEAD MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED

 5    BY THIS ACT EQUAL TO THE AMOUNT PAID BY THE TAXPAYER IN THE TAX

 6    YEAR TO PURCHASE FLOOD INSURANCE ON THAT HOMESTEAD OR $100.00,

 7    WHICHEVER IS LESS.

 8         (2) THE CREDIT ALLOWED UNDER THIS SECTION IS NOT REFUNDABLE

 9    AND IF THE CREDIT AMOUNT ALLOWED UNDER THIS SECTION EXCEEDS THE

10    TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THE EXCESS AMOUNT

11    SHALL NOT BE REFUNDED TO THE TAXPAYER.


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 1         (3) AS USED IN THIS SECTION, "HOMESTEAD" MEANS THAT TERM AS

 2    DEFINED IN SECTION 7DD OF THE GENERAL PROPERTY TAX ACT, 1893

 3    PA 206, MCL 211.7DD.


















































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