Relating to the deferral or abatement of the collection of ad valorem taxes on certain real property.
Impact
The implementation of HB 969 is expected to have significant implications on local tax revenues, particularly for regions with numerous historic properties. By allowing tax deferrals, families may retain ownership of properties that might otherwise be sold due to financial burdens imposed by tax liabilities. Moreover, the provision establishes a lower interest rate during the abatement period, contributing to further financial relief for qualifying owners. This bill can be seen as a way to encourage the preservation of family-owned historic properties that hold intrinsic value to communities.
Summary
House Bill 969 addresses the deferral or abatement of the collection of ad valorem taxes on specific categories of real property. The bill introduces provisions that allow individuals owning historic family properties the opportunity to defer tax collections or have suits to collect delinquent taxes abated, provided they meet certain eligibility criteria. Specifically, properties need to be owned continuously for at least 100 years by family members, defined as those related within the third degree by consanguinity or affinity. The bill seeks to preserve family heritage and provide financial relief during challenging economic times.
Contention
Despite its intent to offer support to property owners, concerns regarding HB 969 may stem from the potential reduction in immediate tax revenues for municipal and county governments. Opponents may argue that such tax deferrals could undermine local budgets and the services reliant on tax revenue, such as education and public safety. Additionally, there may be apprehensions about the subjective nature of the eligibility criteria and the process by which individuals can file for tax deferrals, with potential for misuse or bureaucratic delays. These aspects could spark debate among policymakers about the balance between historical preservation and fiscal responsibility.
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts, or who utilize the property tax deferral program in section 33.06, Tax Code.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts and of the number of residence homesteads of certain property owners for which the owner deferred collection of a tax, abated a suit to collect a delinquent tax, or abated a sale to foreclose a tax lien.
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; 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; 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: 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 0454'23