November 19, 2008, Introduced by Rep. Meekhof and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 254.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 254. (1) For tax years that begin after December 31,
2008, a taxpayer that sells his or her property that is his or her
principal residence to the state or a political subdivision of the
state or whose property that is his or her principal residence is
taken for public use under the power of eminent domain in
accordance with the laws of this state may claim a credit against
the tax imposed by this act in an amount determined by subtracting
the taxable value from the state equalized value, multiplying that
amount by the total property tax millage rate applicable to the
property taken, and multiplying that result by the number of years
the taxpayer owned the principal residence, but not more than 15
years.
(2) If the amount of the credit exceeds the tax liability of
the taxpayer for the tax year, that portion of the credit that
exceeds the tax liability shall not be refunded.
(3) As used in this section:
(a) "Principal residence" means that term as defined under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, and exempt from taxation under section 7cc of the general
property tax act, 1893 PA 206, MCL 211.7cc.
(b) "Taxable value" means that value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.