Title
Resolution to Revise and Approve Board of Review Guidelines for Poverty Exemptions
Memorandum
Attached for your approval is a Resolution to Adopt the Board of Review Guidelines for Poverty Exemptions. Local governing bodies are required to adopt guidelines that set income levels for their poverty exemptions guidelines; which income levels may not be set lower than the U.S. Department of Health and Human Services.
PA 390 of 1994, gave the governing body of a city or township the ability to adopt income eligibility requirements greater than the federal guidelines adopted by the state when reviewing poverty exemptions for homesteads.
PA 390 of 1994 further states that the poverty exemption guidelines established by the governing body of the local assessing unit shall also include an asset level test. An asset test means the amount of cash, fixed assets or other property that could be used, or converted to cash for use in the payment of property taxes.
City Council previously adopted Guidelines for Poverty Exemptions in 1998. Approval of the revision to the Board of Review Guidelines will allow for the adoption of an asset level test, further define the definition of a Poverty Exemption and set the income limits. If Council approves the revision, the Board of Review will implement the change effective March 1, 2014.
The adjusted 2014 Maximum Income levels will be:
$ 19,500 - 1 Person $ 39,500 - 5 People
$ 24,500 - 2 People $ 44,500 - 6 People
$ 29,500 - 3 People $ 49,500 - 7 People
$ 34,500 - 4 People $ 54,500 - 8 People
$5,000 For each additional person
Staff
Prepared by: David R. Petrak, Assessor
Reviewed by: Tom Crawford, Financial Services Area Administrator & CFO
Approved by: Steven D. Powers, City Administrator
Body
Whereas, Public Act 390 of 1994, as revised, (the Act) allows the homesteads of persons who, in the judgment of the supervisor and the Board of Review, by reason of poverty, are unable to contribute toward the public...
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