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HB 5272

AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- NONTRANSPARENT WINDSHIELDS AND WINDOWS

2025 Regular Session Introduced by Anthony DeSimone and 2 co-sponsors

Michigan HB 5272 rewrites the homestead tax credit, changing who qualifies and how much they receive for homeowners, renters, seniors, the disabled, and veterans.

02/12/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5272

Summary — HB 5272 (Income Tax Act amendments: homestead/property tax credit)

Status: Introduced (House); electronically reproduced 11/12/2025. Introduced Mar 14, 2025; read first time Apr 7, 2025; referred to Ways & Means and other committees. Tie-bar with HB 5275 (2025). Companion: SB 211.

Purpose

Amends the Michigan Income Tax Act (1967 PA 281) to revise the calculation and eligibility rules for the state property tax credit (homestead credit). The changes clarify and adjust credit percentages for different claimant classes (non‑seniors, seniors, low‑income and disabled claimants, and certain veterans/servicepersons), and provides for a credit treatment for disabled veterans (and surviving spouses) who rent or lease a homestead and excludes that credit from a cap (per the bill title).

Key provisions and changes

  • Amends MCL 206.522 (and cross‑references MCL 206.530) to revise how the homestead/property tax credit is computed.
  • Non‑senior claimants: credit equals 60% of the amount by which property taxes (or rental credit for homestead) exceed a household‑resources threshold (3.5% for tax years before 2018; 3.2% for 2018 and later).
  • Senior claimants: applies a sliding scale of credit percentages based on total household resources. Example tiers include:
    • ≤ $21,000: treated under the special low‑income/disabled formula (see below).
    • > $21,000 to $22,000: 96% of the excess above the resource threshold;
    • > $22,000 to $23,000: 92%;
    • …continued in 4% steps down to…
    • > $30,000: 60% of the excess.
  • Low‑income seniors and certain disabled claimants (paraplegic, hemiplegic, quadriplegic, totally and permanently disabled, deaf, or blind with applicable effective dates) use a graduated percentage table that determines the portion of total household resources counted (e.g., 0% for ≤ $3,000; 1% for > $3,000–$4,000; up to 3.5% for > $6,000 in pre‑2018 years, 3.2% for 2018+).
  • Eligible servicepersons, veterans, and widows/widowers: allowed a credit up to 100% of property taxes based on a formula using the taxable value allowance in section 506; special treatment for renters—use of 20% (pre‑2018) or 23% (2018+) of annual rent divided by the property tax rate to compute the eligible percentage.
  • Title indicates the bill explicitly provides for disabled veterans or surviving spouses who rent/lease a homestead and excludes that credit from any cap (text truncated in provided excerpt).

Who is affected

  • Michigan residents claiming the homestead/property tax credit: homeowners and renters who use the existing property tax/rental homestead credit.
  • Distinct impacts for non‑seniors, seniors (with multiple income tiers), specified disabled persons, and eligible military/veteran claimants and surviving spouses.
  • State government (Treasury) and the state General Fund—potential fiscal impact from changes in credit amounts and eligibility.

Procedural/timeline notes

  • Filed and advanced through committee steps in spring 2025 (public hearing 03/12/2025; joint favorable report). Reproduced and reintroduced in November 2025. Currently referred to House Government Operations (as of 11/12/2025).

Fiscal/administrative considerations

  • Adjusting credit percentages and expanding/clarifying renter/veteran treatment could increase the aggregate property tax credit payments and affect state revenue; the Office of Fiscal Analysis would quantify budgetary impact if enacted.
  • Administrative changes may be required for the Department of Treasury to implement new formulas and renter‑veteran provisions.

For full statutory text and exact numeric formulas, consult the bill language amending MCL 206.522 and 206.530 and related legislative analyses.

Compiled from official sources — confirm details with the bill’s official record.

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