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File #: 20-1801    Version: 3 Name: Resolution to Approve the Board of Review Guidelines for Poverty Exemptions
Type: Resolution Status: Held in Council
File created: 12/21/2020 In control: City Council
On agenda: 1/19/2021 Final action:
Enactment date: Enactment #:
Title: Resolution to Adopt the Board of Review Guidelines for Poverty Exemptions from Property Taxation of Principal Residence Pursuant to MCL 211.7u
Attachments: 1. 2021 Poverty Guidelines 12.2.2020.pdf, 2. Memo T.Gillotti - 2021 recommended Poverty Exemption guidelines.pdf
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 their poverty exemptions from taxes of principal residences at levels higher than the federal guidelines. MCL 211.7u 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 revised Board of Review Guidelines (which are attached) will further define the definition of a Poverty Exemption, maintain the existing maximum $50,000 asset level test, set the income limits not to exceed 2.0 times the U.S. Department of Health and Human Services for a one-person household, which is annually published by the Michigan State Tax Commission, and adjust the Federal Poverty Standards for each additional person times a factor of 1.20. If Council approves the revision, the Board of Review will implement the changes for the 2021 tax year.
Staff
Prepared by: Jerry Markey, Assessor
Reviewed by: Matthew V. Horning, Interim Financial Services Area Administrator and CFO
Approved by: Tom Crawford, City Administrator
Body
Whereas, MCL 211.7u allows the principal residences of persons who, in the judgment of the Board of Review, by reason of poverty, are unable to contribute toward the public charges be eligible for exemption in whole or in part from taxation under this act;
Whereas, MCL 211.7u(2)(e) set the income guidelines to meet the Federal poverty income standards or alternative guidelines adopted by the governing body of the local assessing unit provided those guidelines are not less than the Federal guidelines; and
Whereas, The City Council last approved the series of guidelines in 2020 de...

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