Michele Hoitenga
ALPENA — A proposed bill by State Senator Michele Hoitenga, R-Manton, could allow seniors in Michigan to be exempt from having to pay property taxes.
Senate Bill 292 would allow seniors to file to not pay their property taxes on their primary residence.
In turn, the State would send local governments “sufficient funds” to make up for the property tax they would lose from their tax roll. The bill does not specify what that amount or percentage may be.
Hoitenga introduced the bill on May 13 that would amend the General Property Tax Act.
If passed by the State Senate and State House, and then signed by Gov. Gretchen Whitmer, the new law would take effect on Jan.1 and on property taxes levied after December 31.
This is the second tax-cutting bill introduced by Hoitenga this year. In March, she introduced SB 125 to eliminate state income tax on overtime earnings.
Both bills have been referred to the Senate Committee on Finance, Insurance, and Consumer Protection for further consideration.
Hoitenga said inflation and rising costs have taken a toll on everyone, but especially seniors. She said too many seniors are losing their homes because they can’t afford the taxes or being forced to work long after the retirement age to make ends meet.
“People across northern Michigan are feeling the financial burden of high taxes, especially our seniors, many of whom are on a fixed income and have worked their whole lives, only to now face losing their homes due to skyrocketing property tax increases,” said Hoitenga. “If you are a retired senior or still working, you’ve earned the right to stay in your home without worrying about property taxes.”
In order to qualify for the tax break, a person 70 years old or older must own and occupy as a principal residence the property for which the exemption is claimed.
They must also file a claim, along with supporting documentation affirming that they own and reside in the home as a primary residence, and affirm an individual’s eligibility with the local assessing unit in a form and manner formed by the Michigan Department of Treasury.
A granted exemption would remain in effect as long as the individual who was granted the exemption continuously owns and occupies the property as their principal residence.
Hoitenga said if passed into law, the intent is to have the state fully make local governments who depend on property tax revenue to provide critical services whole. She said because tax bills often change each year, putting a specific total on what it would cost the State was not possible right now.
“The ‘Over 70’ exemption would be the same as Michigan’s disabled veteran exemption. It applies to all property taxes levied on the homestead, which would include millages for schools and emergency services,” she said. “The general fund would backfill the lost revenue. I have asked the treasury for a calculation of the cost but because local millages vary and change, it is impossible to estimate at this time.”
Hoitenga said she hopes her Democratic colleges will rally in support of the bill and offer a little help to seniors who are struggling to pay their bills and often going without basic needs because of property taxes.
“This bill is a step in the right direction of cutting back the tax burden Michiganders face and sends the message that Republicans want to make life better for our seniors, not worse,” Hoitenga said. “If Democrats feel the same way, they should put their money where their mouth is and support this bill.”
It is unknown when the Senate Committee on Finance, Insurance, and Consumer Protection will bring the bill up for consideration.
