[nfbmi-talk] Hot off the press: HB5086 of 2013

Thu Oct 17 19:28:55 UTC 2013

I just found this and thought one of our tax law experts will say if this helps us or hurts us.  Given the sponsor and cosponsors, I'd say all bets are off at this point.

Joe

HOUSE BILL No. 5086
October 17, 2013, Introduced by Reps. Denby, Cavanagh, Rendon, Roberts, Rogers, Robinson,
Outman, VerHeulen and Muxlow and referred to the Committee on Tax Policy.
      A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 522 (MCL 206.522), as amended by 2011 PA 180.
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.
 9        (b) A claimant who is a senior citizen is entitled to a
 1  credit against the state income tax liability under this part
 2  equal to the following:
 3        (i) For a claimant with total household resources of
 4  $21,000.00 or less, an amount as determined in accordance with
 5  subdivision (c).
 6        (ii) For a claimant with total household resources of more
 7  than $21,000.00 and less than or equal to $22,000.00, an amount
 8  equal to 96% of the difference between the property taxes on the
 9  homestead or the credit for rental of the homestead for the tax
10  year and 3.5% of total household resources.
11        (iii) For a claimant with total household resources of more
12  than $22,000.00 and less than or equal to $23,000.00, an amount
13  equal to 92% of the difference between the property taxes on the
14  homestead or the credit for rental of the homestead for the tax
15  year and 3.5% of total household resources.
16        (iv) For a claimant with total household resources of more
17  than $23,000.00 and less than or equal to $24,000.00, an amount
18  equal to 88% of the difference between the property taxes on the
19  homestead or the credit for rental of the homestead for the tax
20  year and 3.5% of total household resources.
21        (v) For a claimant with total household resources of more
22  than $24,000.00 and less than or equal to $25,000.00, an amount
23  equal to 84% 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.
26        (vi) For a claimant with total household resources of more
27  than $25,000.00 and less than or equal to $26,000.00, an amount
 1  equal to 80% of the difference between the property taxes on the
 2  homestead or the credit for rental of the homestead for the tax
 3  year and 3.5% of total household resources.
 4        (vii) For a claimant with total household resources of more
 5  than $26,000.00 and less than or equal to $27,000.00, an amount
 6  equal to 76% of the difference between the property taxes on the
 7  homestead or the credit for rental of the homestead for the tax
 8  year and 3.5% of total household resources.
 9        (viii) For a claimant with total household resources of more
10  than $27,000.00 and less than or equal to $28,000.00, an amount
11  equal to 72% 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.
14        (ix) For a claimant with total household resources of more
15  than $28,000.00 and less than or equal to $29,000.00, an amount
16  equal to 68% 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.
19        (x) For a claimant with total household resources of more
20  than $29,000.00 and less than or equal to $30,000.00, an amount
21  equal to 64% of the difference between the property taxes on the
22  homestead or the credit for rental of the homestead for the tax
23  year and 3.5% of total household resources.
24        (xi) For a claimant with total household resources of more
25  than $30,000.00, an amount equal to 60% of the difference between
26  the property taxes on the homestead or the credit for rental of
27  the homestead for the tax year and 3.5% of total household
 1  resources.
 2        (c) A claimant who is a senior citizen with total household
 3  resources of $21,000.00 or less or a paraplegic, hemiplegic, or
 4  quadriplegic and for tax years that begin after December 31,
 5  1999, a claimant who is totally and permanently disabled, or
 6  deaf, or, for tax years that begin after December 31, 2012, blind
 7  is entitled to a credit against the state income tax liability
 8  for the amount by which the property taxes on the homestead, the
 9  credit for rental of the homestead, or a service charge in lieu
10  of ad valorem taxes as provided by section 15a of the state
11  housing development authority act of 1966, 1966 PA 346, MCL
12  125.1415a, for the tax year exceeds the percentage of the
13  claimant's total household resources for that tax year computed
14  as follows:
15      Total household resources                      Percentage
16      Not over $3,000.00                                 .0%
17      Over $3,000.00 but not over $4,000.00             1.0%
18      Over $4,000.00 but not over $5,000.00             2.0%
19      Over $5,000.00 but not over $6,000.00             3.0%
20      Over $6,000.00                                    3.5%
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
 1  506 by the taxable value of the homestead or, if the eligible
 2  serviceperson, eligible veteran, or eligible widow or widower
 3  leases or rents a homestead, divide 17% of the total annual rent
 4  paid for tax years before the 1994 tax year, or 20% of the total
 5  annual rent paid for tax years after the 1993 tax year on the
 6  property by the property tax rate on the property.
 7        (ii) Multiply the property taxes on the homestead by the
 8  percentage computed in subparagraph (i).
 9        (e) A claimant who is blind is entitled to a credit against
10  the state income tax liability for a percentage of the property
11  taxes on the homestead for the tax year determined as follows:
12        (i) If the taxable value of the homestead is $3,500.00 or
13  less, 100% of the property taxes.
14        (ii) If the taxable value of the homestead is more than
15  $3,500.00, the percentage that $3,500.00 bears to the taxable
16  value of the homestead.
17        (2) A person who is qualified to make a claim under more
18  than 1 classification shall elect the classification under which
19  the claim is made.
20        (3) Only 1 claimant per household for a tax year is entitled
21  to the credit, unless both the husband and wife filing a joint
22  return are blind, then each shall be considered a claimant.
23        (4) As used in this section, "totally and permanently
24  disabled" means disability as defined in section 216 of title II
25  of the social security act, 42 USC 416.
26        (5) A senior citizen who has total household resources for
27  the tax year of $6,000.00 or less and who for 1973 received a
 1  senior citizen homestead exemption under former section 7c of the
 2  general property tax act, 1893 PA 206, may compute the credit
 3  against the state income tax liability for a percentage of the
 4  property taxes on the homestead for the tax year determined as
 5  follows:
 6        (a) If the taxable value of the homestead is $2,500.00 or
 7  less, 100% of the property taxes.
 8        (b) If the taxable value of the homestead is more than
 9  $2,500.00, the percentage that $2,500.00 bears to the taxable
10  value of the homestead.
11        (6) For a return of less than 12 months, the claim shall be
12  reduced proportionately.
13        (7) The department may prescribe tables that may be used to
14  determine the amount of the claim.
15        (8) The total credit allowed in this section for each year
16  after December 31, 1975 shall not exceed $1,200.00 per year.
17        (9) The total credit allowable under this part and part 361
18  of the natural resources and environmental protection act, 1994
19  PA 451, MCL 324.36101 to 324.36117, shall not exceed the total
20  property tax due and payable by the claimant in that year. The
21  amount by which the credit exceeds the property tax due and
22  payable shall be deducted from the credit claimed under part 361
23  of the natural resources and environmental protection act, 1994
24  PA 451, MCL 324.36101 to 324.36117.