Bill > HB4041

This bill amends the general property tax act to modify provisions related to property tax exemptions for homeowners experiencing poverty. The bill allows local assessing units to continue poverty-based property tax exemptions for homeowners without requiring annual reapplication, specifically for individuals who receive fixed income from public assistance sources like Social Security or disability benefits. Homeowners seeking this exemption must own and occupy the property, file a claim with the board of review, provide income documentation, and meet federal poverty guidelines. The bill provides for full or partial tax exemptions, ranging from 25% to 100% reduction in taxable value, and establishes requirements for maintaining the exemption. Notably, the bill includes provisions for homeowners to maintain their exemption through tax year 2023 if they were previously eligible, with the condition that they must file an affidavit if their ownership or occupancy status changes. Local assessing units are required to develop audit programs to verify continued eligibility and can impose penalties, including additional taxes and interest, if a homeowner is found to be ineligible for the exemption. The bill aims to provide continued tax relief for low-income homeowners while ensuring accountability and proper verification of eligibility.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4041