Bill > SB0442

This bill modifies the property tax exemption for charitable nonprofit housing organizations by updating several key provisions of Michigan's property tax law. The bill changes the process for obtaining a tax exemption from a local resolution-based system to a state tax commission application process, where charitable nonprofit housing organizations can apply directly for an exemption on eligible property. The bill expands the definition of an "income-eligible person" from those with family incomes at or below 80% of the statewide median gross income to those with incomes up to 120% of the statewide median gross income. The exemption periods are standardized to 5 years for residential building lots and 3 years for other types of eligible properties, with the exemption ending if the property is either occupied by an income-eligible person or transferred by the charitable nonprofit housing organization. The bill also introduces more precise language around terms like "transferred" and "residential building lot" and requires that any previous years of exemption before December 31, 2014, be subtracted from the total possible exemption period. These changes aim to streamline the property tax exemption process for nonprofit organizations focused on creating affordable housing and expand the potential pool of eligible recipients.

Housing and Urban Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0442