Michigan House Bill HB5133

Michigan 2023-2024 Regular Session

• Introduced: 10/12/23
• Refer: 10/12/23

Caption

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

Impact

If enacted, HB 5133 would significantly impact the property tax landscape in Michigan for senior citizens. It would exempt eligible seniors from the usual property tax obligations, thereby enabling them to retain more of their income for other essential needs. However, the bill establishes that properties exempt under this provision will still be subject to the specific tax levied under the senior citizens principal residence specific tax act, which may mitigate the financial benefits provided through this new exemption.

Summary

House Bill 5133 aims to provide a tax exemption for properties owned and occupied as a principal residence by senior citizens. Specifically, the bill amends the General Property Tax Act of 1893, introducing a new section (7yy) that exempts such properties from property tax collection starting after December 31, 2023. This legislative change is designed to alleviate the financial burden of property taxes on senior citizens, who often face fixed or reduced incomes in retirement.

Contention

There may be points of contention regarding the bill, particularly around how the tax exemption is funded and its implications for local government revenues. Opponents may argue that while the intention is to support seniors, the loss of property tax revenue could strain local governments, which rely on these funds for critical services. Furthermore, there could be discussions about definitions related to 'senior citizen' and 'principal residence', which may have varying interpretations and potential implications for the implementation of this bill.