Bill > HB5235

This bill amends Michigan's income tax law to clarify and expand definitions related to income and property ownership. The bill updates the definition of "income" by replacing references to "a person" with "an individual" and makes minor technical corrections to language about various income exclusions, such as gifts, awards, surplus foods, and government grants. More significantly, the bill expands the definition of "owner" to explicitly include individuals who have placed their homestead in a revocable trust or a qualified personal residence trust, which was not previously specified in the law. This change provides clarity for homeowners who use certain types of trusts to manage their property, ensuring they can still qualify for property tax-related benefits. The bill also maintains existing provisions that exclude specific types of income from tax calculations, such as small gifts, lottery winnings, energy assistance grants, and certain stipends for senior volunteers, thereby preserving existing tax benefits for Michigan residents.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5235