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
The proposed changes aim to streamline the process by which disabled veterans and their surviving spouses can defer property taxes. Notably, beginning January 1, 2024, eligible veterans or their unremarried spouses can authorize their local tax collecting unit to claim an income tax credit on their behalf, which would assist in alleviating their property tax burden. This approach shifts from direct exemptions to a deferred tax collection system, thereby potentially easing the financial pressures faced by these individuals during tax seasons.
Senate Bill 0096 proposes amendments to the General Property Tax Act of 1893, specifically targeting tax exemptions for disabled veterans. The bill establishes that real property used as a homestead by eligible disabled veterans shall be exempt from property tax collection. To obtain this exemption, veterans must file a specific affidavit demonstrating their eligibility and property details with the local tax assessing officers. The legislation reflects a commitment to providing financial relief to those who have served in the armed forces and who may face significant economic challenges due to their disabilities.
While the bill is designed to support veterans, notable points of contention include concerns regarding the administrative burdens it might place on local tax collecting units in terms of processing affidavits and managing the deferred tax claims. Additionally, some lawmakers may raise issues about the implications of shifting financial responsibility for property tax losses from local municipalities to the state, as local units could bear the financial impact of reduced tax revenues due to the exemptions granted. Stakeholders in the veterans' community may also express differing views on whether the new process will adequately meet their needs or complicate their existing benefits.