Michigan House Bill HB5055

Michigan 2023-2024 Regular Session

• Introduced: 9/27/23
• Refer: 9/27/23

Caption

Property tax: exemptions; exemption for the surviving spouse of a disabled veteran; modify. Amends sec. 7b of 1893 PA 206 (MCL 211.7b).

Impact

By enforcing this legislation, the state aims to alleviate some financial burdens faced by disabled veterans and their surviving spouses, allowing them to retain more of their income and savings. This change may encourage veterans to invest in home ownership while providing a safety net for their families after their passing. However, the bill places upon the survivors the obligation to adhere to specific criteria to maintain eligibility, which includes filing an affidavit that proves their qualification for such exemptions.

Summary

House Bill 5055 proposes to amend the General Property Tax Act of 1893 in Michigan, focusing specifically on property tax exemptions for disabled veterans and their surviving spouses. The bill specifies that real property used and owned as a homestead by a disabled veteran who has been honorably discharged from the armed forces is exempt from certain taxes. This exemption extends to the surviving spouse, provided they remain unmarried, promoting support for a vital demographic of veterans and their families.

Contention

A notable point of contention arising from the bill includes the conditions surrounding the continuation of the property tax exemption for surviving spouses, especially regarding homestead status. There are outlined consequences related to potential loss of the exemption if the surviving spouse moves to a new property that the deceased veteran did not own or use as a homestead. Critics could argue that these restrictions complicate the process for eligible families, potentially leading to confusion over what constitutes continued eligibility and impacting their financial security.