May 22, 2007, Introduced by Senators HUNTER, THOMAS, ANDERSON, CLARK-COLEMAN, SCOTT, BRATER, PRUSI, CLARKE and GLEASON and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7nn.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7nn. (1) The governing body of a local tax collecting
unit may by resolution exempt from the collection of taxes under
this act the principal residence of a person who is an eligible
senior citizen as of the date of the resolution or the date the
person became an eligible senior citizen, whichever is later.
(2) Before acting on the resolution, the clerk of the local
tax collecting unit shall notify in writing the assessor of the
local tax collecting unit and the legislative body of each local
unit that levies ad valorem property taxes in the local tax
collecting unit and shall afford the assessor and a representative
of the affected local units an opportunity for a hearing on the
proposed resolution.
(3) The exemption under this section is effective on the
December 31 immediately succeeding the adoption of the resolution
by the governing body of the local tax collecting unit. The
exemption shall continue in effect until the principal residence is
transferred or for a period specified in the resolution, whichever
is sooner. A copy of the resolution shall be filed with the state
tax commission.
(4) Upon the transfer of ownership of property exempt under
subsection (1), the taxable value of the property shall be adjusted
pursuant to section 27a(3).
(5) The death of a spouse does not terminate the exemption
under this section unless the surviving spouse remarries.
(6) As used in this section:
(a) "Eligible senior citizen" means a person who meets all of
the following conditions:
(i) Is 65 years of age or older.
(ii) His or her only source of taxable income is social
security benefits as defined in section 30 of the income tax act of
1967, 1967 PA 281, MCL 206.30.
(b) "Local unit" means a county, township, city, or village.
(c) "Principal residence" means that term as defined in
section 7dd.
(d) "Taxes" means taxes, and special assessments imposed by a
local unit if the special assessment district is all the territory
of the local unit.
(e) "Transfer of ownership" means that term as defined in
section 27a.