Bumstead bills reform veterans property tax exemption, also give relief to local governments
LANSING, Mich. – Legislation introduced by Sen. Jon Bumstead on Wednesday would reform the Michigan property tax exemption for 100% disabled veterans by shifting the tax burden from local government units to the state’s Treasury Department.
Senate Bills 783 and 784 would maintain the same level of tax relief for veterans with disabilities at 100%, but would transform the benefit of a property tax exemption into an income tax credit in order to ” lighten the burden on local governments.
“It is important that our 100% disabled veterans understand that this reform will not affect the amount of property tax credit they may receive, the process they claim for their credit, or force them to pay.” their property taxes up front, âBumstead said. , R-Newaygo. âFrom an eligible veteran’s perspective, in reality, nothing changes.
âLocal governments are under financial pressure and the goal is simply to place the burden on the state for administering credit and repaying exempt property taxes to local governments. This will provide cities, towns, townships and counties with financial relief while maintaining the current benefits veterans receive. “
The process for qualifying veterans to claim their credit would remain unchanged – a veteran or their spouse would file an affidavit with their local government unit to request the exemption, which would then defer the collection of property tax until such time. that the Ministry of the Treasury proceed to the payment of the reimbursement.
When paying by the state, the local unit must provide written notification to the person who filed the affidavit explaining the payment or rejection by the state, as well as any additional amount that may be due and the later due date.
SB 783-784 has been referred to the Senate Finance Committee for consideration.