Michigan Senate Bill SB0455

Michigan 2023-2024 Regular Session

• Introduced: 7/20/23
• Refer: 7/20/23

Caption

Property tax: exemptions; disabled veteran exemption; replace with process to apply for an income tax credit. Amends sec. 7b of 1893 PA 206 (MCL 211.7b). TIE BAR WITH: SB 0454'23

Impact

The bill introduces a process for disabled veterans, who meet specific criteria set by the United States Department of Veterans Affairs, to defer property taxes while granting local taxing entities the ability to claim homestead credits on their behalf. This means that instead of making immediate tax payments, these veterans can postpone their tax liabilities without incurring penalties or interest during the deferment period. The transition to an income tax credit framework for this demographic is expected to alleviate financial burdens on veterans, further facilitating their reintegration into civilian life.

Summary

Senate Bill 455 aims to amend the General Property Tax Act of 1893 by altering the way property tax exemptions are granted to disabled veterans and their surviving spouses. Under this bill, eligible disabled veterans will be exempt from property taxes on their homesteads, provided they file an affidavit with local assessments. This exemption not only applies directly to veterans but also extends to their unremarried spouses, assuring that they continue to receive this benefit following the veteran's death. The initiative is part of a broader effort to support those who have served in the military and have been deemed permanently disabled due to their service.

Contention

Notable points of contention surrounding this bill may arise from discussions on local fiscal impacts and potential administrative challenges in processing affidavits. Local tax collectors will now be responsible for a significant shift in how they handle property tax collection related to this demographic, which could complicate tax collection processes and budgeting at the municipal level. While the intention of supporting veterans is widely recognized, concerns about ensuring the smooth implementation of the new framework and its ramifications for local government revenue without adequate adjustments are potential topics for debate.