Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0095

Introduced

3/1/23

Refer

3/1/23

Caption

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23

Impact

The bill modifies existing provisions of the Income Tax Act regarding property tax calculations and credits, especially for disabled veterans who previously received a full property tax exemption. Instead, under this new structure, a credit will be available that varies based on the taxpayer's financial situation, which can significantly alter the tax liabilities for affected individuals. Adjustments to thresholds for total household resources and the allowable credits are included to ensure that the benefits are equitably distributed according to income levels.

Summary

Senate Bill 0095 proposes to modify the Income Tax Act of 1967 by replacing the property tax exemption currently provided to disabled veterans with a property tax credit. This amendment is aimed at offering a more practical financial relief mechanism for disabled veterans and potentially aligns with other state tax reforms. The proposed changes are designed to adjust property tax credits available for individuals based on their total household resources, thus pursuing a targeted assistance model to those most in need, particularly veterans and senior citizens.

Contention

One notable point of contention regarding SB0095 centers around the adequacy of the new tax credit compared to the former exemption's straightforward benefits for disabled veterans. Critics may argue that while the credit provides some level of financial help, it introduces complexity that could prove burdensome for beneficiaries to navigate. Discussions may also arise regarding the bill's potential impacts on local government financing and whether the adjustments to the tax credits truly meet the needs of the disabled veteran community.

Latest SB0095 Activity

Companion Bills

MI SB0096

Same As Property tax: exemptions; disabled veteran exemption; replace with process to apply for an income tax credit. Amends sec. 7b of 1893 PA 206 (MCL 211.7b). TIE BAR WITH: SB 0095'23

Similar Bills

MI HB4894

MI SB0454

MI HB4724

Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).

MI HB4767

Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23

MI HB4088

Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).

KS SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2074

Including homestead renters as eligible to participate in certain homestead property tax refund claims.

KS SB453

Excluding social security payments from household income and expanding eligibility related to increased property tax homestead property tax refund claims.