Michigan House Bill HB5134

Michigan 2023-2024 Regular Session

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

Caption

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.