Taxation: specific tax; specific tax on certain property of senior citizens; provide for. Creates new act. TIE BAR WITH: HB 5133'23
Impact
Under this law, local tax assessors will be responsible for determining the value and taxable value of properties owned by senior citizens annually. While seniors will not be subject to the standard property taxes, they will still be required to pay a specific tax that is set at 50% of the property’s taxable value multiplied by the local assessment mills. This unique taxation structure seeks to balance tax relief with the necessity of supporting local governmental units financially, as the revenue collected from these specific taxes will be distributed among state and local entities, including cities, townships, and school districts.
Summary
House Bill 5134, known as the Senior Citizens Principal Residence Specific Tax Act, aims to provide a tax exemption for certain properties owned and occupied by senior citizens in Michigan. Specifically, the bill exempts properties owned by individuals aged 65 and older from ad valorem property taxes that are typically collected under the general property tax act. This exemption is set to take effect for taxes levied after December 31, 2023, thereby providing immediate financial relief to senior homeowners seeking to manage their tax burdens more effectively.
Contention
The introduction of HB 5134 has sparked discussions around its implications for state taxation policies and local governance. Proponents argue that this bill is a step towards offering greater financial support to senior citizens who may struggle with increased living costs. However, some detractors raise concerns about the long-term viability of funding local services if reliance on property taxes is diminished. They argue that while seniors may benefit, communities could face challenges in adequately funding essential services such as education and public safety if a significant portion of tax revenue is removed from the general tax base.
Same As
Property tax: senior citizens; property tax exemption for certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 5134'23
Taxation: specific tax; specific tax on certain homesteads of disabled veterans and their surviving spouses; provide for. Creates new act. TIE BAR WITH: HB 4444'25
Taxation: specific tax; application of neighborhood enterprise zone tax to certain facilities; modify. Amends sec. 9 of 1992 PA 147 (MCL 207.779). TIE BAR WITH: HB 4966'23
Property tax: senior citizens; property tax exemption for certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 5134'23
Property tax: senior citizens; property tax exemption for certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1. - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 4372'25
Taxation: specific tax; determination of eligible tax reverted property specific tax; modify. Amends sec. 5 of 2003 PA 260 (MCL 211.1025). TIE BAR WITH: HB 4966'23
Taxation: specific tax; application of tax reverted property specific tax to certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends secs. 4 & 5 of 2003 PA 260 (MCL 211.1024 & 211.1025). TIE BAR WITH: SB 0484'25
Property tax: payment in lieu of taxes; payment in lieu of taxes for certain renewable energy facilities; provide for. Creates new act. TIE BAR WITH: HB 4318'23
Property tax: exemptions; property tax exemption for principal residence of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy.