Title
Resolution to Adopt the Board of Review Guidelines for Poverty Exemptions from Property Taxation of Principal Residence Pursuant to MCL 211.7u
Memorandum
Attached for your approval is a resolution to adopt the Board of Review Guidelines for Poverty Exemptions pursuant to MCL 211.7u. Local governing bodies may adopt guidelines that set income levels for poverty exemptions from taxes of principal residences at levels higher than the Federal poverty guidelines published in the prior calendar year in the Federal Register by the United States Department of Health and Human Services; MCL 211.7u and also requires local governing bodies to identify in their guidelines, specific income and asset level limitations of both the applicant and the household (“asset test”).
Approval of the attached Board of Review Guidelines further defines Poverty Exemption, maintains the existing maximum $50,000.00 asset level test, and sets the income limits not to exceed 50% of the area median income (AMI) limits established by the Department of Housing and Urban Development for Washtenaw County as published in the previous year. If Council approves the revision, the Board of Review will implement the changes for the 2027 tax year.
Approval of the Board of Review Guidelines will establish specific reductions in taxable value for residents that qualify for a reduction in taxable value because of poverty. The Board of Review shall grant the exemption in whole or in part as follows:
• A full exemption equal to 100% reduction in taxable value for the tax year in which the exemption is granted if the income of a resident is equal to or less than the federal poverty level.
• A partial exemption of 75%, 50% or 25% reduction in taxable value for the tax year in which the exemption is granted based on the household income of a resident greater than the federal poverty level and less than or equal to the maximum poverty level adopted by council. The level of exemption shall correspond ...
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