WeVote
Log In

Bill

Bill

HB 5999

Property tax: exemptions; poverty exemption; modify. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).

2025-2026 Regular Session Introduced by Tyrone Carter and 2 co-sponsors

The bill expands eligibility for principal residence property tax exemptions to more low-income homeowners by tightening annual documentation, income limits, and oversight.

bill electronically reproduced 05/20/2026
#propertytax:exemptions
0
WeVote Research Nonpartisan
Bill Summary · HB 5999

Summary of HB 5999 (Michigan, 2025-2026)

Purpose and intent

  • HB 5999 proposes amendments to the general property tax act (1893 PA 206), specifically to the poverty exemption provisions in section 7u.
  • The bill aims to modify eligibility criteria, application requirements, and enforcement related to exemptions from local property taxes for principal residences when the owner is unable to contribute toward public charges due to poverty.

Key provisions and changes

  • Eligibility basis (subsection 2):

    • Maintains that the principal residence of a person who is deemed impoverished by the local supervisor and board of review may be eligible for a full or partial exemption from property taxes.
    • Eligibility is anchored in demonstrated poverty and ownership/occupancy of the principal residence, with specific annual filing and documentation requirements outlined below.
    • Three main thresholds to meet, including income-based guidelines and a low income cap for certain sole-source incomes (e.g., Social Security disability or retirement benefits).

  • Annual requirements to qualify (subsection 2): mandatory steps each year

    • (a) Confirm ownership and occupancy of the property in writing via a form prescribed by the State Tax Commission (STC) and filed with the local assessing unit.
    • (b) File a claim with the local board of review using a form prescribed by the STC, including:
    • Federal and state income tax returns for all residents of the home, or an affidavit if the resident is not required to file a tax return.
    • If tax returns are filed, they must be included; if not required, an affidavit may substitute.
    • Filing constitutes an appearance before the board of review to preserve appeal rights.
    • (c) Provide a valid driver license or ID upon request.
    • (d) Provide evidence of property ownership (deed, land contract, etc.) if required.
    • (e) Meet income guidelines:
    • (i) Federal poverty guidelines (prior year) published by HHS.
    • (ii) Optional alternative guidelines adopted by the local assessing unit that are not more lenient than federal guidelines.
    • (iii) Have as sole income Social Security disability or retirement benefits not exceeding $2,200 per month, with an annual CPI-based adjustment by the state treasurer starting after the act’s effective year.

  • Application window (subsection 3):

    • Exemption applications must be filed after January 1 and before the last day of the board of review’s determination period for the year.

  • Local policy transparency (subsection 4):

    • Local governing bodies must publish their exemption policies and guidelines, including the specific income and asset levels of claimants and total household income/assets.
    • If there is a local website, the policy, guidelines, and the claim forms must be accessible online.

  • Board of Review discretion (subsection 5):

    • If eligibility is met, the board may grant:
    • 100% exemption (full exemption) for the tax year.
    • Or partial exemptions at 75%, 50%, or 25%, or other percentage reductions approved by the STC.

  • Temporary expansions and extensions (subsections 6, 8):

    • Allows a local unit to extend exemptions without reapplication for certain earlier years (2019-2023) under specified conditions, including no ownership/occupancy changes and meeting extended criteria for fixed-income residents with low or infrequent increases.
    • In 2021-2023, some exemptions may continue for up to 3 additional years in certain circumstances.

  • Audits and compliance (subsection 9):

    • Local units that adopt extended exemption provisions must implement an audit program evaluating all information filed under subsection (2).
    • If an audit reveals ineligibility, the claimant must repay additional taxes with interest per the same rules as the extension provisions.
    • STC to issue guidance on audits.

  • Retroactive or prior-year exemptions (subsection 10):

    • If the assessor determines eligibility criteria were met for the immediately preceding tax year and an exemption was not on the roll or denied, the July/December board of review can grant an exemption for the preceding year, with documentation and notice to the Department of Treasury.

  • Definition clarification (subsection 11):

    • “Principal residence” includes both standard principal residences and qualified agricultural property as defined in section 7dd.

Affected parties and potential impact

  • Individuals and families: Michigan residents who own and occupy a qualifying principal residence and meet poverty or low-income criteria could receive full or partial property tax exemptions, reducing their annual property tax burden.
  • Local assessing units and boards of review: Must apply the stated guidelines, process exemption applications, publish policies, administer annual eligibility checks, and potentially conduct audits.
  • State agencies: State Tax Commission and Department of Treasury would provide forms, guidance, and process requirements; monitor and, if necessary, collect repayments for ineligible exemptions.
  • Public charge considerations: The changes reinforce the link between income/poverty status and exemption eligibility, with explicit poverty guidelines and CPI-based adjustments for certain income limits.

Procedural and timeline aspects

  • Filing window: Applications accepted after January 1 and before the last day of the board of review’s tax-year determination period.
  • Annual renewal: Eligible individuals must annually affirm ownership/occupancy and file income documentation.
  • Audits: Local units must implement audits if exemptions are extended; penalties include repayment with interest if ineligible.
  • Administrative accessibility: Policies and forms must be publicly available, including online access where available.
  • Effective adjustments: CPI-based adjustments to the income limit for certain sole-source incomes (starting after the amendatory act’s effective year).

Note: The bill retains several existing structural elements of Michigan’s poverty exemption framework while expanding eligibility checks, documentation requirements, and oversight, and it introduces specific CPI-adjusted income limits for certain benefit-based incomes.

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

Sign in to ask a question.