SB 442 creates a new state-level process for charitable nonprofit housing organizations to obtain property tax exemptions on specific residential properties (like single-family homes, duplexes, or small multi-unit buildings). Organizations must apply to the state tax commission, which has 60 days to approve or deny the exemption. If approved, the exemption lasts 3-5 years (depending on property type) or ends sooner if the property is occupied by an income-eligible person (family income ≤120% of statewide median) or transferred. The bill modifies existing rules to shift from local resolution-based exemptions to a centralized state application system.
SB 485 creates a new tax on properties sold by government units (like cities or counties) after tax foreclosure. It applies to owners of these "reverted" properties, requiring them to pay a tax calculated as if the property were subject to regular property taxes. Revenue from the tax is split: 50% goes to local taxing units (like school districts), and 50% to the government authority that sold the property. The bill also specifies that properties in designated Renaissance Zones are partially exempt from this tax, with certain portions still distributed to the relevant taxing units.
SB 484 creates a 5-year property tax exemption for real estate sold or conveyed by land banks or local governments after tax delinquency. This applies to properties sold under the Land Bank Fast Track Act or Tax Reverted Clean Title Act, beginning the year after sale and lasting through the fifth December 31. The exemption does not apply to properties in brownfield redevelopment plans if specific conditions are met (e.g., land bank bonds or brownfield plan details). Properties under this exemption remain subject to the tax levied under the Tax Reverted Clean Title Act.
SB 344 modifies Michigan's property tax credit for individual income tax filers by changing the percentage rates used to calculate the credit. It directly affects homeowners who claim this credit, particularly those with lower property values who benefit from the credit against their state income tax. The bill amends specific sections of Michigan's Income Tax Act to adjust the credit percentages, making the calculation more precise. This change alters how much property tax can be deducted from income tax liability for eligible residents.
SB 345 increases the property tax credit threshold for Michigan homeowners, raising the taxable value cap for homestead property tax credits from $135,000 to $160,700 for the 2024 tax year. Beginning in 2025, the cap will automatically adjust annually based on the U.S. Consumer Price Index, rounded to the nearest $100. This change directly affects homeowners whose property value falls within the new threshold, allowing them to claim a larger credit against their state income tax for qualifying property taxes. The bill modifies Section 520 of Michigan’s Income Tax Act to implement this adjustment.
HB 4079 adjusts the income limit for homeowners aged 65 or older, or those totally and permanently disabled, who qualify for a property tax deferment on special assessments. Currently set at $34,900 as of October 2022, the bill replaces this fixed amount with an annual adjustment based on the Detroit-area Consumer Price Index (CPI), meaning the limit will rise or fall each year with local inflation. The state treasurer will calculate the new limit annually using the prior year's CPI data, rounding to the nearest dollar. This change directly affects eligible homeowners seeking to defer special assessments on their primary residences without immediate payment.
SB 565 amends Michigan's property tax reimbursement fund rules to require that unused funds from the local government reimbursement fund lapse (transfer) to the state's general fund at year-end, instead of remaining in the fund. It directly affects municipalities that receive state reimbursements for revenue lost due to small business property tax exemptions under the General Property Tax Act. The key change modifies Section 3a of the Michigan Trust Fund Act (2000 PA 489) to ensure unspent funds are returned to the state's general budget annually, rather than carrying over. This is a procedural adjustment to fund management, not a change to tax exemptions or reimbursement eligibility.
HB 4041 would automatically renew property tax exemptions for eligible homeowners who previously qualified under the poverty exemption program, eliminating the need for them to reapply annually. It directly affects low-income homeowners in Michigan who have already established eligibility for the exemption under current law. The bill amends Michigan law to require automatic continuation of this exemption in specified circumstances, reducing administrative burdens for qualifying residents. This change streamlines the process by removing annual application requirements for those already verified as eligible.
HB 4088 adjusts the property tax credit for Michigan homeowners by raising the taxable value cap for homestead eligibility from $135,000 (through 2021) to $196,500 starting in 2026. It requires annual adjustments to this cap based on the U.S. Consumer Price Index (CPI), rounded to the nearest $100, to maintain its real value over time. The bill directly affects homeowners claiming the property tax credit who own homestead properties with taxable values exceeding the new cap. This change modifies the eligibility threshold under Section 520 of Michigan's Income Tax Act, ensuring the cap keeps pace with inflation.
HB 5235 clarifies who qualifies for Michigan's property tax credit on primary homes by expanding the definition of "owner" to include homeowners who place their homestead in revocable trusts or qualified personal residence trusts. This change directly affects homeowners using these specific trust structures to hold their primary residence, ensuring they remain eligible for the tax credit. The bill modifies existing law to explicitly include grantors (homeowners) who transfer their homestead into such trusts, removing ambiguity about their eligibility. It does not change the credit amount or create new requirements, only defining who qualifies under current rules. The bill is currently in committee review after being introduced in November 2025.
