Properties qualified for a poverty exemption could soon remain exempt from property taxes for up to three years if they file an annual extension. House Bill 4041, sponsored by Rep. Tyrone Carter (D-Detroit), was approved by the House Committee on Finance and would replace the annual filing requirement for the exemption. The bill is permissive and allows a local assessing unit to permit a principal residence with a poverty exemption to remain exempt for up to three years as long as there is no change in ownership or occupancy status, the individual receives a fixed income solely from public assistance, and files an annual extension. Current law allows a local board of review to grant a full or partial poverty exemption from property taxes for a qualifying owner of a principal residence, but the individual must file an application with supporting documentation every year.
Michigan Townships Association
