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

Fri Oct 18 15:55:22 UTC 2013

OK Guys, here's the deal as I read This bill.  As blind people, it would give us a credit on our property taxes if we are home owners, but wait until you hear what kind of a credit we get:  

Well if your home is valued at $3,500 or less, you get 100% of your property taxes forgiven.  Yes that's three thousand five hundred dollars or less...Any takers?  

But if your home is valued at more than $3,500, then you get a credit that is equal to the percentage that 3,500 represents in relation to the taxable value of your home.  In other words, let's say that your house has a taxable value of $200,000:  3500 dollars is 1.5 percent of 200,000.  So you get 1.5 percent of your property taxes forgiven.  Wow, that's a savings of a dollar fifty for every hundred dollars in taxes that we pay as blind people.  

If your house is worth $100,000, then you would save 3.5 percent on your property tax bill.  So there you have it, for what ever it is worth.  

Christine

  . 
On Oct 17, 2013, at 3:28 PM, "Joe Sontag" <suncat0 at gmail.com> wrote:

> 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.
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