SB-0847, As Passed Senate, June 11, 2014

SUBSTITUTE FOR

SENATE BILL NO. 847

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 522 (MCL 206.522), as amended by 2013 PA 206.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 522. (1) The amount of a claim made pursuant to this

2 chapter shall be determined as follows:

3 (a) A claimant who is not a senior citizen is entitled to a

4 credit against the state income tax liability under this part

5 equal to 60% of the amount by which the property taxes on the

6 homestead, or the credit for rental of the homestead for the tax

7 year, exceeds 3.5% of the claimant's total household resources

8 for ~~that tax year.~~tax years ending before January 1, 2015 or

9 exceeds 2.6% of the claimant's total household resources for tax

10 years beginning after December 31, 2014.

1 (b) A claimant who is a senior citizen is entitled to a

2 credit against the state income tax liability under this part

3 equal to the following:

4 (i) For a claimant with total household resources of

5 $21,000.00 or less, an amount as determined in accordance with

6 subdivision (c).

7 (ii) For a claimant with total household resources of more

8 than $21,000.00 and less than or equal to $22,000.00, an amount

9 equal to 96% of the difference between the property taxes on the

10 homestead or the credit for rental of the homestead for the tax

11 year and 3.5% of total household resources for tax years ending

12 before January 1, 2015 and 2.6% of total household resources for

13 tax years beginning after December 31, 2014.

14 (iii) For a claimant with total household resources of more

15 than $22,000.00 and less than or equal to $23,000.00, an amount

16 equal to 92% of the difference between the property taxes on the

17 homestead or the credit for rental of the homestead for the tax

18 year and 3.5% of total household resources for tax years ending

19 before January 1, 2015 and 2.6% of total household resources for

20 tax years beginning after December 31, 2014.

21 (iv) For a claimant with total household resources of more

22 than $23,000.00 and less than or equal to $24,000.00, an amount

23 equal to 88% of the difference between the property taxes on the

24 homestead or the credit for rental of the homestead for the tax

25 year and 3.5% of total household resources for tax years ending

26 before January 1, 2015 and 2.6% of total household resources for

27 tax years beginning after December 31, 2014.

1 (v) For a claimant with total household resources of more

2 than $24,000.00 and less than or equal to $25,000.00, an amount

3 equal to 84% of the difference between the property taxes on the

4 homestead or the credit for rental of the homestead for the tax

5 year and 3.5% of total household resources for tax years ending

6 before January 1, 2015 and 2.6% of total household resources for

7 tax years beginning after December 31, 2014.

8 (vi) For a claimant with total household resources of more

9 than $25,000.00 and less than or equal to $26,000.00, an amount

10 equal to 80% of the difference between the property taxes on the

11 homestead or the credit for rental of the homestead for the tax

12 year and 3.5% of total household resources for tax years ending

13 before January 1, 2015 and 2.6% of total household resources for

14 tax years beginning after December 31, 2014.

15 (vii) For a claimant with total household resources of more

16 than $26,000.00 and less than or equal to $27,000.00, an amount

17 equal to 76% of the difference between the property taxes on the

18 homestead or the credit for rental of the homestead for the tax

19 year and 3.5% of total household resources for tax years ending

20 before January 1, 2015 and 2.6% of total household resources for

21 tax years beginning after December 31, 2014.

22 (viii) For a claimant with total household resources of more

23 than $27,000.00 and less than or equal to $28,000.00, an amount

24 equal to 72% of the difference between the property taxes on the

25 homestead or the credit for rental of the homestead for the tax

26 year and 3.5% of total household resources for tax years ending

27 before January 1, 2015 and 2.6% of total household resources for

1 tax years beginning after December 31, 2014.

2 (ix) For a claimant with total household resources of more

3 than $28,000.00 and less than or equal to $29,000.00, an amount

4 equal to 68% of the difference between the property taxes on the

5 homestead or the credit for rental of the homestead for the tax

6 year and 3.5% of total household resources for tax years ending

7 before January 1, 2015 and 2.6% of total household resources for

8 tax years beginning after December 31, 2014.

9 (x) For a claimant with total household resources of more

10 than $29,000.00 and less than or equal to $30,000.00, an amount

11 equal to 64% of the difference between the property taxes on the

12 homestead or the credit for rental of the homestead for the tax

13 year and 3.5% of total household resources for tax years ending

14 before January 1, 2015 and 2.6% of total household resources for

15 tax years beginning after December 31, 2014.

16 (xi) For a claimant with total household resources of more

17 than $30,000.00, an amount equal to 60% of the difference between

18 the property taxes on the homestead or the credit for rental of

19 the homestead for the tax year and 3.5% of total household

20 resources for tax years ending before January 1, 2015 and 2.6% of

21 total household resources for tax years beginning after December

22 31, 2014.

23 (c) A claimant who is a senior citizen with total household

24 resources of $21,000.00 or less or a paraplegic, hemiplegic, or

25 quadriplegic and for tax years that begin after December 31,

26 1999, a claimant who is totally and permanently disabled, deaf,

27 or, for tax years that begin after December 31, 2012, blind is

1 entitled to a credit against the state income tax liability for

2 the amount by which the property taxes on the homestead, the

3 credit for rental of the homestead, or a service charge in lieu

4 of ad valorem taxes as provided by section 15a of the state

5 housing development authority act of 1966, 1966 PA 346, MCL

6 125.1415a, for the tax year exceeds the percentage of the

7 claimant's total household resources for that tax year computed

8 as follows:

9	For tax years ending before January 1, 2015
10	Total household resources Percentage
11	Not over $3,000.00 .0%
12	Over $3,000.00 but not over $4,000.00 1.0%
13	Over $4,000.00 but not over $5,000.00 2.0%
14	Over $5,000.00 but not over $6,000.00 3.0%
15	Over $6,000.00 3.5%
16
17	For tax years beginning after December 31, 2014
18	Total household resources Percentage
19	Not over $6,000.00 .0%
20	Over $6,000.00 2.6%

21 (d) A claimant who is an eligible serviceperson, eligible

22 veteran, or eligible widow or widower is entitled to a credit

23 against the state income tax liability for a percentage of the

24 property taxes on the homestead for the tax year not in excess of

25 100% determined as follows:

26 (i) Divide the taxable value allowance specified in section

27 506 by the taxable value of the homestead or, if the eligible

1 serviceperson, eligible veteran, or eligible widow or widower

2 leases or rents a homestead, divide 17% of the total annual rent

3 paid for tax years before the 1994 tax year, or 20% of the total

4 annual rent paid for tax years after the 1993 tax year on the

5 property by the property tax rate on the property.

6 (ii) Multiply the property taxes on the homestead by the

7 percentage computed in subparagraph (i).

8 (e) A claimant who is blind is entitled to a credit against

9 the state income tax liability for a percentage of the property

10 taxes on the homestead for the tax year determined as follows:

11 (i) If the taxable value of the homestead is $3,500.00 or

12 less, 100% of the property taxes.

13 (ii) If the taxable value of the homestead is more than

14 $3,500.00, the percentage that $3,500.00 bears to the taxable

15 value of the homestead.

16 (2) A person who is qualified to make a claim under more

17 than 1 classification shall elect the classification under which

18 the claim is made.

19 (3) Only 1 claimant per household for a tax year is entitled

20 to the credit, unless both the husband and wife filing a joint

21 return are blind, then each shall be considered a claimant.

22 (4) As used in this section, "totally and permanently

23 disabled" means disability as defined in section 216 of title II

24 of the social security act, 42 USC 416.

25 (5) A senior citizen who has total household resources for

26 the tax year of $6,000.00 or less and who for 1973 received a

27 senior citizen homestead exemption under former section 7c of the

1 general property tax act, 1893 PA 206, may compute the credit

2 against the state income tax liability for a percentage of the

3 property taxes on the homestead for the tax year determined as

4 follows:

5 (a) If the taxable value of the homestead is $2,500.00 or

6 less, 100% of the property taxes.

7 (b) If the taxable value of the homestead is more than

8 $2,500.00, the percentage that $2,500.00 bears to the taxable

9 value of the homestead.

10 (6) For a return of less than 12 months, the claim shall be

11 reduced proportionately.

12 (7) The department may prescribe tables that may be used to

13 determine the amount of the claim.

14 (8) The total credit allowed in this section for each year

15 after December 31, 1975 shall not exceed $1,200.00 per year.

16 (9) The total credit allowable under this part and part 361

17 of the natural resources and environmental protection act, 1994

18 PA 451, MCL 324.36101 to 324.36117, shall not exceed the total

19 property tax due and payable by the claimant in that year. The

20 amount by which the credit exceeds the property tax due and

21 payable shall be deducted from the credit claimed under part 361

22 of the natural resources and environmental protection act, 1994

23 PA 451, MCL 324.36101 to 324.36117.

24 Enacting section 1. This amendatory act does not take effect

25 unless all of the following bills of the 97th Legislature are

26 enacted into law:

27 (a) Senate Bill No. 752.