Michigan House Bill HB5419

Michigan 2023-2024 Regular Session

• Introduced: 2/1/24
• Refer: 2/1/24

Caption

Property tax: special assessments; income eligibility cap for special assessment deferment program; modify. Amends secs. 3 & 4 of 1976 PA 225 (MCL 211.763 & 211.764).

Impact

The bill will notably affect homeowners by providing them an opportunity to defer certain special assessments based on their income level. By increasing the income cap for deferment eligibility, it is expected to help more seniors and disabled homeowners retain their properties during financial hardships. As the language specifies, any deferral will mean the state places a lien on the property, creating an obligation for repayment once the homeowner's circumstances change. This could lead to a significant impact on property tax collections at the local level.

Summary

House Bill 5419 seeks to amend the provisions of 1976 PA 225 concerning the deferral of special assessments on homestead properties. The bill specifically targets homeowners who are 65 years of age or older, or those who are totally and permanently disabled. To qualify for the deferment, applicants must have been sole owners of their homestead for at least five years and meet specific income criteria. Under this bill, the household income threshold for eligibility is set to increase gradually, aligning with the Detroit Consumer Price Index to ensure it remains relevant over time.

Contention

Notable points of contention surrounding HB 5419 include concerns about the long-term implications of placing a lien on a property. While proponents argue that this measure is essential for supporting vulnerable populations, critics may express apprehension regarding the potential for future debt accumulation by homeowners, particularly if they are unable to repay the deferred amounts. Additionally, the adjustment mechanism for income eligibility could lead to debates about fairness and accessibility, particularly as it pertains to varying economic conditions and the potential effects on local government finances.