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 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 and continue to set the income limits not to exceed 2.20 times the U.S. Department of Health and Human Services for each person in the household, which is annually published by the Michigan State Tax Commission. Upon Councils approval, the Board of Review will implement the changes for the 2023 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.
* Taxable value will be reduced by 100% if the income of a resident is equal to or less than 125% of the federal poverty level.
* Taxable value will be reduced by 50% if the income of a resident is greater than 125% of the federal poverty level and less than 75% of the poverty level established by city council.
* Taxable value will be reduced by 25% if the income of a resident is equal to or greater than 75% of the poverty level established by city council.
Approval of the Board of Review Guidelines for 2023 is a continuation of Poverty Levels established by City Council in 2022.
Staff
Prepared by: Jerry Markey, Assessor
Reviewed by: Marti Praschan, Financia...
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