HOUSE BILL No. 5070


     September 23, 1997, Introduced by Rep. Martinez and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending section 7u (MCL 211.7u), as amended by 1994 PA 390.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 7u.  (1) The homestead of  persons  A PERSON who, in

 2    the judgment of the supervisor  and  OR board of review,  by

 3     reason of poverty, are  IS unable to contribute toward the public

 4    charges BECAUSE OF POVERTY is eligible for exemption, in whole or

 5    in part, from  taxation  THE COLLECTION OF TAXES under this act.

 6    This section does not apply to the property of a corporation.

 7         (2) To be eligible for exemption under this section, a

 8    person shall do all of the following on an annual basis:

 9         (a)  Be an owner of  OWN and occupy as a homestead the

10    property for which an exemption is requested.




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 1         (b) File a claim FOR EXEMPTION with the supervisor or board

 2    of review on a form provided by the local  assessing  TAX

 3    COLLECTING unit, accompanied by federal and state income tax

 4    returns for all persons residing in the homestead, including any

 5    property tax credit returns  ,  filed in the immediately preced-

 6    ing year or in the current year.  The filing of  FILING a claim

 7    under this subsection  constitutes  IS an appearance before the

 8    board of review  for the purpose of preserving  AND PRESERVES the

 9    claimant's right to appeal the  decision of the  board of

10     review  REVIEW'S DECISION regarding the claim FOR EXEMPTION.

11         (c) Produce a valid driver's license or other form of iden-

12    tification if requested by the supervisor or board of review.

13         (d) Produce a deed, land contract, or other evidence of

14    ownership of the property for which an exemption is requested if

15    required by the supervisor or board of review.

16         (e) Meet the federal poverty income standards as defined and

17    determined annually by the United States office of management and

18    budget or alternative guidelines adopted by the governing body of

19    the local  assessing  TAX COLLECTING unit  provided  IF the

20    alternative guidelines do not provide income eligibility require-

21    ments less than the federal guidelines.

22         (3) The  application for an  CLAIMANT SHALL FILE A CLAIM FOR

23    exemption under this section  shall be filed  after January 1 but

24    before the day  prior to  IMMEDIATELY PRECEDING the last day  of 

25    the board of review MEETS.

26         (4) The governing body of the local  assessing  TAX

27    COLLECTING unit shall determine and make available to the public



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 1    the policy and guidelines the local  assessing  TAX COLLECTING

 2    unit uses  for the granting of exemptions  TO GRANT AN EXEMPTION

 3    under this section.  The guidelines shall include, but ARE not

 4     be  limited to, the specific income and asset levels of the

 5    claimant and total household income and  assets  ASSET LEVELS.

 6         (5) BEGINNING ON THE EFFECTIVE DATE OF THE AMENDATORY ACT

 7    THAT ADDED THIS SUBSECTION, THE LOCAL TAX COLLECTING UNIT SHALL

 8    NOTIFY THE OWNERS OF PROPERTY ON WHICH THE TAXES ARE DELINQUENT

 9    OF THE EXEMPTION AVAILABLE UNDER THIS SECTION AND THE OWNER OF

10    PROPERTY ON WHICH THE TAXES ARE DELINQUENT MAY FILE A CLAIM FOR

11    EXEMPTION PURSUANT TO SUBSECTION (3) FOR THE TAX YEARS FOR WHICH

12    THE DELINQUENT TAXES WERE ASSESSED.  IF THE EXEMPTION IS GRANTED

13    UNDER THIS SECTION, THE ASSESSOR OF THE LOCAL TAX COLLECTING UNIT

14    OR, IF THE TAX ROLL IS IN THE POSSESSION OF THE COUNTY TREASURER,

15    THE COUNTY TREASURER SHALL CORRECT THE TAX ROLL TO REFLECT THE

16    EXEMPTION.

17         (6)  (5)  The board of review shall follow the policy and

18    guidelines of the local  assessing  TAX COLLECTING unit in grant-

19    ing or denying an exemption under this section unless the board

20    of review determines THAT there are substantial and compelling

21    reasons why  there should be a deviation  THE BOARD OF REVIEW

22    SHOULD DEVIATE from the policy and guidelines and  the substan-

23     tial and compelling  THOSE reasons are communicated in writing to

24    the claimant.

25         (7)  (6)  A person who files a claim FOR EXEMPTION under

26    this section  is not prohibited from  MAY also  appealing  APPEAL





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 1    the assessment  on  OF the property for which that claim is made

 2     before  TO the board of review in the same year.

 3         (8)  (7)  As used in this section, "homestead" means A home-

 4    stead or qualified agricultural property as those terms are

 5    defined in section 7dd.














































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