HB 5865 establishes a new annual property tax specifically for properties that were previously owned by land banks and sold to clear title issues. This tax is designed to generate revenue for the state and the specific land bank authority that originally sold the property, with funds split evenly between general local taxes and the land bank for future cleanup efforts. The bill includes an exemption for properties located in designated HOPE zones or Renaissance zones, ensuring these areas remain financially supported. Additionally, the tax is treated as a lien on the property, subject to the same collection fees, interest, and foreclosure processes as standard delinquent property taxes.
This bill proposes an amendment to the Michigan state constitution to permanently extend a property tax relief measure for homeowners who sell their primary residences. Currently, selling a home triggers a full reassessment of its value, which often leads to a significant spike in property taxes for the new owner; this change would allow the new owner to keep the lower taxable value established under the existing cap rules. The relief applies only to homes that are continuously owned and used as a principal residence, meaning the tax advantage ends if the property is sold for investment purposes or converted to a non-residential use. By removing the automatic reset of taxable value upon transfer, the bill aims to reduce the financial burden on families moving between primary homes.
SB 966 amends the State Housing Development Authority Act of 1966 to add new powers for the State Housing Development Authority in Michigan. The bill allows the authority to establish and collect fees for its publications, loans, and related services, and to use the resulting income for its corporate purposes. These funds are not considered interest and can be used to support the authority's housing initiatives, provided they are not pledged for bond repayment. The legislation directly affects the State Housing Development Authority by expanding its financial and operational capabilities to better serve housing needs across Michigan.
This bill modifies Michigan's property tax law to expand exemptions for homeowners who cannot pay taxes due to poverty. To qualify, individuals must own and live in their primary residence, file an annual claim with required income documentation, and meet specific financial thresholds based on federal poverty guidelines or fixed income limits like Social Security. Local officials will determine eligibility using clear income and asset criteria, granting either full or partial tax reductions depending on the applicant's situation. The legislation also allows certain residents with fixed incomes to keep their exemption for up to three years without reapplying, provided their financial status remains unchanged.
SB 792 amends Michigan's "Obsolete Property Rehabilitation Act" to clarify definitions and update eligibility for tax exemptions on rehabilitation projects. The bill specifies that "obsolete property" includes blighted, functionally obsolete, or brownfield sites (e.g., industrial buildings converted to residential use), and defines "rehabilitation" to require major improvements (exceeding 10% of property value), excluding minor repairs. It refines criteria for local governments to establish rehabilitation districts, limiting eligibility to areas with economic hardship indicators like low median income or proximity to large cities. This affects property owners and local governments in designated districts by ensuring only substantial rehabilitation projects qualify for tax relief under the updated rules.
HB 5365, the "SFR Tax and Economics Act," imposes a surtax on large investors (entities owning 50+ single-family homes) for acquiring, selling, or holding properties. It requires certified entities (like community land trusts or MSHDA-approved groups) to implement 15-year affordability covenants limiting rent/sale prices to 30-80% of local median income. The bill affects large real estate investors and entities receiving state benefits related to single-family homes, mandating reporting and compliance. Proceeds from surtaxes fund affordable housing initiatives, while exemptions apply to qualifying "mission buyers" like public housing agencies.
HB 4080 reinstates a program deferring property tax special assessments for eligible Michigan homestead owners. It applies to assessments due before October 1, 2020, or on/before October 1, 2022, for primary residences owned by qualifying individuals (including those who are totally and permanently disabled). The bill allows owners to defer payments until death, sale, or transfer of the property, with up to four annual partial payments (minimum $500 or 5% of the balance) and interest accruing on unpaid amounts. Full payment becomes due upon sale, transfer, or death, and the bill requires the state to notify owners of these terms. This amendment to Michigan’s 1976 property tax law (MCL 211.761-762) is contingent on HB 4079 passing.
SB 192 creates a partial property tax exemption for Michigan homeowners aged 63+ who have lived in their primary residence as their main home for at least 10 years, or homeowners of any age who have lived there continuously for 30 years. It applies to households with total gross income under $40,000 annually. The exemption amount equals the current taxable value minus a "base amount" established in the year the homeowner first qualifies. This bill directly affects low-income senior homeowners meeting specific residency and income criteria, freezing their tax burden relative to a base year value.
HB 4741 modifies Michigan's property tax law by ending certain programs that reduced delinquent tax payments or prevented foreclosure. It adds a $175 fee for properties forfeited to county treasurers due to unpaid taxes (after 12+ months delinquent), changes interest calculations for residential properties under foreclosure avoidance agreements, and updates redemption rules. Homeowners with delinquent taxes, particularly those in residential properties covered by existing tax foreclosure avoidance agreements, will be directly affected by these changes. The bill sunsets specific programs that previously offered payment reductions, requiring property owners to pay full delinquent amounts plus fees to avoid losing their homes.
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.
