Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762).
Impact
By deferring special assessments due and payable until a year after the owner's death, the bill significantly alters the financial landscape for homestead property owners in Michigan. It effectively helps reduce the financial stress that assessments impose on families during a difficult time. The bill stipulates that payments are due in full if the property is sold or transferred, thus ensuring that the local governments and treasury departments retain their rightful collections while offering some relief to property owners. The impact of this legislation could help residents, especially the elderly or disabled, manage their properties without the immediate worry of outstanding assessments.
Summary
House Bill 5420 aims to amend the existing law regarding the deferment of special assessments on homestead properties in Michigan. The bill seeks to provide clear conditions under which homestead property owners can defer the payment of special assessments until specific events occur, such as the owner's death or transfer of the property. The legislation reinforces the eligibility criteria for deferment, especially highlighting provisions for individuals who are permanently disabled. This is essential for protecting vulnerable demographics, ensuring they are not burdened by immediate financial obligations related to property assessments.
Contention
Some points of contention arise from the implications of this deferment structure on local government tax revenue. Local governments may need to adjust their budgets and financial planning based on the expected deferment of income from property assessments. Furthermore, there might be concerns regarding how this bill interacts with other state regulations or proposed legislation, particularly Senate Bill No. 5419, which is tied to the enactment of HB5420. Legislators and advocacy groups may raise differing opinions on the effectiveness of such a deferment policy in addressing broader issues of housing affordability and tax equity within the state.
Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762). TIE BAR WITH: HB 4079'25
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).
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). TIE BAR WITH: HB 4080'25
Property tax: special assessments; certain references in act providing for deferment of special assessments on certain homesteads; make gender neutral. Amends sec. 4 of 1976 PA 225 (MCL 211.764). TIE BAR WITH: HJR F'25
Property tax: special assessments; certain references in act providing for deferment of special assessments on certain homesteads; make gender neutral. Amends sec. 4 of 1976 PA 225 (MCL 211.764). TIE BAR WITH: HJR F'23
Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762). TIE BAR WITH: HB 4079'25
Proposing a constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes and providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of an elderly or disabled person to reflect the increased exemption amount, authorizing the legislature to prohibit a political subdivision that has adopted an optional residence homestead exemption from ad valorem taxation from reducing the amount of or repealing the exemption, and prohibiting the enactment of a law that imposes a transfer tax on a transaction that conveys fee simple title to real property.