Thursday, August 27, 2015

Little-known property tax exemptions

It is time to pay summer property taxes. Most municipalities give residents until September 15 to pay.

Many people are unaware of special exemptions that apply under Michigan law.

Under MCL 211.7b, the homestead of a disabled veteran who was discharged under honorable conditions is exempted from all property taxes. To qualify, the veteran must have one of the following:
  • a 100% disability rating based on a service-related disability
  • a certificate from the VA for monetary assistance for specially adapted housing, or
  • a rating by the VA as "individually unemployable."
Under MCL 211.7u, the principal residence of a person who is "unable to contribute toward the public charges" by reason of poverty is exempt. There are requirements for filing an application and satisfying the municipality's criteria, and the determination must be made annually by the "supervisor and board of review." Each municipality is required to develop and make available to the public the policy and guidelines to be used for the exemption, and the policy and guidelines must be followed.

There are numerous other exemptions under Chapter 211 as well.