HOUSE BILL NO. 5419

February 01, 2024, Introduced by Reps. Schuette and Hoadley and referred to the Committee on Tax Policy.

A bill to amend 1976 PA 225, entitled

"An act to defer the collection of special assessments on homestead properties; to provide for conditions of eligibility for such a deferment; to prescribe the powers and duties of the department of treasury, local assessing officers, and local collecting officers; to provide for the advancement of moneys by the state to indemnify special assessment districts for losses from deferment of collections; to provide for the advancement of money by the state to an owner for the repayment of loans used by the owner to pay special assessments; to provide for the collection of deferred special assessments and interest thereon, and the disposition of these collections; to make an appropriation; and to prescribe penalties,"

by amending sections 3 and 4 (MCL 211.763 and 211.764), as amended by 1980 PA 403.

the people of the state of michigan enact:

Sec. 3. (1) An owner of a homestead who is 65 years of age or older or who is totally and permanently disabled, and who is a citizen of the United States, a resident of this state for 5 or more years, and the sole owner of the homestead for 5 or more years, is eligible for the deferment of special assessments on that homestead pursuant to under this act. The owner and the owner's spouse shall must not have received during the last calendar year household income as defined in section 508 of Act No. 281 of the Public Acts of 1967, as amended, being section 206.508 of the Michigan Compiled Laws, the income tax act of 1967, 1967 PA 281, MCL 206.508, in excess of $8,000.00; this amount shall is to be increased to $10,000.00 for the determination of eligibility for a deferment after December 31, 1982, and to $29,619.00 for the determination of eligibility for a deferment after the effective date of the amendatory act that added this phrase. The gross amount of the special assessment deferred under this act, exclusive of interest, shall must not be less than $300.00.

(2) The maximum dollar amount of household income required by subsection (1) to be eligible for the deferment of special assessments under this act shall be adjusted each year beginning on January 1, 1984, pursuant to the annual average percentage increase or decrease in the Detroit consumer price index—all items as defined and reported by the United States department of labor, bureau of labor statistics. The adjustment shall be made by multiplying the annual average percentage increase or decrease in the Detroit consumer price index for the prior calendar year by the current maximum dollar amount of the household income requirement as adjusted by this subsection. The resultant product shall be added to the maximum dollar amount of the household income requirement as adjusted by this subsection and then rounded off to the nearest whole number, which shall be the new household income requirement for the current year.At the end of each calendar year, the state treasurer shall adjust the amount of the eligibility cap on household income under subsection (1) by an amount determined by the state treasurer to reflect the cumulative annual percentage change in the Consumer Price Index. As used in this subsection, "Consumer Price Index" means the most comprehensive index of consumer prices available for the Detroit area from the Bureau of Labor Statistics of the United States Department of Labor.

(3) After January 1, 1975, a person 65 years of age or older An individual who otherwise qualifies under this section for deferral deferment of special assessments who fails failed to pay a prior delinquent special assessment and thereby lost the property homestead to the local unit of government who purchased the property through tax forfeiture, foreclosure, and sale may reacquire the property from the local unit of government through a land contract. The A land contract for a parcel of property homestead reacquired under the circumstances set forth in this subsection shall is to be treated as a special assessment for purposes of this act.

(4) The owner of a homestead who is 65 years of age or older or is totally and permanently disabled, a citizen of the United States, a resident of this state for 5 or more years, and the sole owner of the homestead for 5 or more years, in the year the special assessment was levied, and An individual who qualifies under this section for deferment of special assessments who has borrowed money from a lending institution to pay a special assessment before the effective date of this subsection, shall be January 8, 1981 is eligible to receive money from the special revolving fund created in section 10, to be used for the purpose of repaying to repay the lending institution the principal amount used by the person individual to pay the special assessment. The department shall cause a lien on the homestead in favor of the this state to be recorded with the appropriate register of deeds, indicating the amount of the money paid and identifying the homestead. Money paid from the fund under this subsection shall must be treated as if the money had been paid as a deferred special assessment.

Sec. 4. An owner may apply to the local assessing officer for deferment of the payment of special assessments on the owner's homestead. The application shall must be made upon on an affidavit form to be furnished and made available provided by the department at convenient locations throughout the this state. The affidavit form shall must contain the following statement in 10-point boldface boldfaced type located immediately above the affiant's signature: "If this deferment is authorized the state will place a lien on your property." A person An individual making a false affidavit for the purpose of obtaining deferment of special assessments under this act is guilty of perjury. If the homestead is owned jointly by husband and wife, a married couple, each spouse shall must sign and file the affidavit. If the homestead is encumbered by a mortgage or an unpaid balance on a land contract, a deferment of special assessments shall must not be made without the written consent of the mortgagee or the land contract vendor, which shall must be filed with the affidavit. The consent document must further include a statement indicating that the mortgagee or land contract vendor understands that its interest in the homestead is subordinate to this state's lien, as described in section 6, which is a first lien on the homestead. The affidavit shall must be filed with the local assessing officer at least 30 days after the due date of a special assessment or installment of a special assessment for which deferment is requested.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5420 (request no. 05280'24) of the 102nd Legislature is enacted into law.