Bill > HB4372

This bill establishes a new tax framework for senior citizens' principal residences in Michigan, providing a property tax exemption and a specific alternative tax for homeowners aged 65 and older. Starting January 1, 2026, qualifying senior citizens (defined as individuals 65 or older who own and occupy their principal residence) will be exempt from traditional ad valorem property taxes. Instead, they will be subject to a new "senior citizens principal residence specific tax" that is equivalent to 50% of what their property tax would have been. This specific tax will be collected and distributed in the same manner as regular property taxes, ensuring that local governments and school districts continue to receive revenue. The bill defines key terms like "principal residence" and establishes that local tax assessors will annually determine the property's value. The new tax system aims to provide financial relief for senior citizens while maintaining a funding mechanism for local government services. Importantly, the bill is contingent on the passage of a related House Bill (HB 4379), meaning it will only take effect if that companion legislation is also enacted into law.