Michigan House Bill HB4741

Michigan 2023-2024 Regular Session

• Introduced: 6/13/23
• Refer: 6/13/23

Caption

Property tax: exemptions; disabled veteran exemption; hold local taxing units harmless for. Amends sec. 7b of 1893 PA 206 (MCL 211.7b).

Impact

If enacted, HB 4741 would alter the current landscape of property tax exemptions significantly. The legislation mandates that for taxes levied after December 31, 2022, the state will reimburse local taxing units for the taxes associated with the exemptions granted under this law. This change is expected to ease the financial burden on disabled veterans and their families, promoting stability for those who have served in the military. Additionally, it ensures that local governments will not suffer unduly from the lost tax revenue due to these exemptions, as the state will cover those costs.

Summary

House Bill 4741 proposes amendments to the 1893 General Property Tax Act, specifically targeting property tax exemptions for disabled veterans. The bill aims to provide a broader exemption for real property used as a homestead by disabled veterans who were discharged from the armed forces under honorable conditions. A key aspect of this proposal is the continuation of the tax exemption not only for the veterans but also for their surviving spouses, provided they remain unremarried and continue to use the property as their homestead.

Contention

While the bill seeks to support disabled veterans and their families, it may face scrutiny from local governments regarding the financial implications of the reimbursement process. Critics may argue that while state reimbursement can mitigate losses, the reliance on state funds could lead to complications in local budgeting and potentially shift resources away from other community needs. The measure also raises questions about how the definition of 'disabled veteran' will be applied and verified, which could affect the inclusiveness of the intended beneficiaries.