Michigan Senate Bill SB0163

Michigan 2023-2024 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23

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

The potential impact of SB 163 is significant, especially for disabled veterans and their surviving spouses who stand to benefit from reduced financial burdens relating to property taxes. By facilitating this exemption, the bill aims to provide financial support for veterans who may have already faced challenges due to their disabilities. Local taxing units will bear the implications of lost tax revenue, leading to discussions about balancing support for veterans with fiscal responsibilities.

Summary

Senate Bill 163 amends the General Property Tax Act in Michigan to enhance tax exemption provisions for disabled veterans and their surviving spouses. The bill explicitly states that real property classified as homestead and owned by a disabled veteran or an eligible surviving spouse is exempt from property taxes. This exemption continues for surviving spouses as long as they remain unremarried, and applies to any homestead property the surviving spouse may acquire post the veteran's death. To benefit from this exemption, an affidavit must be filed, documenting eligibility and property specifics.

Contention

While the bill is designed to protect and support veterans and their families, there may be contentions regarding the financial impact on local governments. Critics might argue that providing extended exemptions may complicate local funding structures, affecting services funded by property taxes. Additionally, discussions may arise about whether the bill sufficiently addresses the needs of all veterans or if it should incorporate further provisions to broaden the support offered.