Michigan House Bill HB4970

Michigan 2023-2024 Regular Session

• Introduced: 9/12/23
• Refer: 9/12/23
• Report Pass: 9/28/23

Caption

Property tax: other; definition of property taxes for purposes of income tax credits; modify. Amends sec. 512a of 1967 PA 281 (MCL 206.512a). TIE BAR WITH: HB 4966'23

Impact

If enacted, HB4970 would redefine the framework under which property taxes intersect with income tax regulations in the state of Michigan. The amendment is intended to facilitate clearer interpretations regarding eligibility for income tax credits linked to property taxes, which could potentially affect many taxpayers in the state. By clarifying the conditions under which special assessments can be included in property taxes, the bill strives for greater transparency and fairness in tax practices.

Summary

House Bill 4970 aims to amend section 512a of the Income Tax Act of 1967 to clarify the definition of property taxes for the purpose of income tax credits. The proposed changes seek to specify what constitutes property taxes that are eligible for income tax deductions or credits, particularly concerning special assessments. This legislative effort is part of a broader initiative to improve the accuracy and efficiency of tax regulations in Michigan, ensuring that residents benefit from legitimate credits without ambiguity.

Contention

There are some notable points of contention regarding the reclassification of special assessments in relation to property taxes. Supporters of the bill argue that this will streamline the process and eliminate confusion for taxpayers who might struggle with current ambiguities in tax regulations. However, opposing viewpoints may raise concerns about how these changes will impact local governments' ability to levy special assessments, as such assessments are sometimes critical for funding essential services, including police and fire services.