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(revised December 2004)
with 2008 Income Limits
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This policy was written
in accordance with and governed by MCL 211.7u, as amended.
In order to be eligible
for the poverty exemption, the claimant MUST do all of the following
on an annual basis:
1.
Own and occupy as your
principal residence, as defined in Section 7dd of the General Property Tax
Act, the property for which the exemption is requested;
2.
File a claim with the Board of
Review after January 1st, but before the day prior to the last
day of the Board of Review, on a form provided by the City Assessor;
3.
Provide federal and state
income tax returns for all persons residing in the principal residence (also
referred to as “household” or “homestead”) including any property tax credit
returns (MI-1040 CR-4.) These income tax returns are those filed in the
current year or in the immediately preceding year. If you did not file a
Tax Return, then you MUST get a statement of benefits paid from the
Social Security Administration or Michigan Department of Social Services;
4.
Produce a valid driver’s
license or other form of identification;
5.
Produce a deed, land contract,
or other evidence of ownership of the property for which the exemption is
being requested;
6.
Meet the federal poverty
income guidelines for the household, which are updated annually in the
federal register by the United States Department of Health and Human
Services; and
7.
Meet the claimant and total
household asset levels set by the Bay City Commission.
INCOME & ASSET GUIDELINES
FOR POVERTY EXEMPTIONS
If your income exceeds
the amounts shown or your assets exceed the amounts shown,
unless the Board of Review determines there are substantial and compelling
reasons why there should be a deviation from this policy and guidelines, you
are NOT eligible for a Poverty Exemption.
Income Eligibility for 2008
(these income levels are updated
annually, as stated on page one, item #6)
Federal Poverty
Guidelines:
Size of
Family Unit Income Level
1 person $10,210
2 persons
$13,690
3 persons
$17,170
4 persons
$20,650
5 persons
$24,130
6 persons
$27,610
7 persons
$31,090
8 persons
$34,570
for each additional person add: $ 3,480
Asset Eligibility
The State Equalized
Value (SEV) of your principal residence may not exceed $59,732 for
the 2008 tax year, which is one and a half times the average 2007 SEV in the
City of Bay City.
Applicants cannot have
more than $10,000 in assets to be eligible for consideration and no more
cash than an amount equal to one month’s gross household income. Assets do
not include the homestead or an automobile. Assets do include: stocks,
bonds, mutual funds, insurance policies, coin collections, boats, ORVs,
motorcycles, recreational vehicles, second homes or salable property,
retirement accounts, jewelry, etc.
GUIDELINES BY
WHICH
POVERTY EXEMPTIONS ARE DETERMINED
1.
Completed application form and
all required documents and attachments MUST be filed with the City
Assessor’s Office no later than:
March 14, 2008 for action
by the March Board of Review; or
July 14, 2008 for action
by the July Board of Review; or
December 1, 2008 for
action by the December Board of Review.
Sign the form when you return it to the City
Assessor’s Office. It MUST be notarized or witnessed by a member of
the City Assessor’s staff.
NOTE: The filing of a claim constitutes an
appearance before the Board of Review. Also, the dates for filing will be
updated annually in accordance with the State of Michigan Property Tax
Calendar.
2.
The Board of Review determines
if Income Standards have been met.
3.
The Board of Review determines
if Asset limits have been met.
a.
Cash assets to the total
household may not exceed an amount equal to one month’s gross household
income. Cash assets are defined as cash, money held in checking or savings
accounts, money markets and other financial institution accounts, and/or
instruments or securities which can be readily converted to cash.
b.
Non-cash assets to the total
household may not exceed $10,000. Non-cash assets are defined as those
which are not considered to be cash assets, as defined above. The following
assets are excluded from this limit:
1.
Applicant’s homestead
2.
Applicant’s household personal
property
3.
Assets not accessible by the
applicant, co-owner or any member of the applicant’s household.
4.
All applicants, if approved by
the Board of Review, shall pay taxes equal to 3.5% of their total household
gross income.
Applicants over 65,
paraplegic, quadriplegic, hemiplegic or totally and permanently disabled as
defined under Social Security Guidelines 42 USC 416, will pay taxes equal to
the following percentages:
Total household gross
income less than $7,296 0%
Total household gross
income $7,297 to $8,320 1%
Total household gross
income $8,321 to $9,341 2%
Total household gross
income $9,342 to $10,209 3%
Total household gross
income greater than $10,210 3.5%
5.
The Board of Review will
consider all revenue and non-revenue producing assets of the owner, co-owner
and all members of the household. Any attempt to hide and/or shift assets
to another person, business or corporation shall be grounds for denial.
6.
The Board of Review will
consider the effect of all Michigan Income Tax Credits the applicant
receives or can receive. Credits include Homestead Property Tax credits,
Senior Citizen Prescription Drug credits and Home Heating credits.
7.
Applications must be filed
every year. If granted, the exemption is for one year only.
8.
Poverty exemptions shall be
granted no more than three (3) times during one ownership of the property,
unless the applicant can prove hardship beyond his/her control. The Board
of Review will grant exceptions for persons over 65, paraplegic,
quadriplegic, hemiplegic or totally and permanently disabled as defined
under Social Security Guidelines 42 USC 416.
9.
All applications will be
reviewed by the Board of Review. The Board may ask applicants, or their
authorized agents, to be physically present to answer questions.
Teleconferencing for the purpose of asking questions of the applicant is
allowable if the applicant is not able to attend.
10.
Applicants, or their
authorized agents, may have to answer questions regarding such subject as
financial affairs, health and/or the status of people living in the
principal residence at a meeting that is open to the public.
11.
All applications will be
evaluated based on data and statements given to the Board by the applicant.
The Board can also use information gathered from any other source.
12.
The Board of Review shall
follow the policy and guidelines established herein when granting or denying
an exemption.
13.
The Board of Review may
deviate from the guidelines if it determines there are substantial and
compelling reasons which are to be communicated, in writing, to the
applicant. Compelling reasons include, but are not limited to, excessive
medical expenses or excessive expenses necessary for the care of elderly or
handicapped persons.
14.
Applicants may be subject to
investigation of their entire financial and property records by the City.
This would be done to verify information given or statements made to the
Board of Review or assessor in regards to the poverty tax claim.
15.
Household income limits are
adjusted each year to comply with the Federal Poverty Guidelines.
16.
Applicants will be sent a
written notice of the Board of Review’s final decision. An applicant may
appeal the Board of Review’s decision to the Michigan Tax Tribunal. An
assessor may also appeal the Board of Review’s decision. Appeals must be
filed with the Michigan Tax Tribunal by the following dates:
June 30th for decision made by the March Board of Review
August 20, 2008 for decision made by the July Board of Review
January 7, 2009 for decision made by the December Board of Review
Poverty Exemption Calculations
Board of Review Use Only
Parcel ID
#_____________________ State Equalized Value $____________
Homestead %______
Tax Year__________
□
Under 65, no
disabilities, not a veteran.
□
Over 65,
paraplegic, quadriplegic or hemiplegic (as defined under Social Security
Guidelines 42 USC 416) with income greater than $10,210.
□
Over 65,
paraplegic, quadriplegic or hemiplegic (as defined under Social Security
Guidelines 42 USC 416) with income less than $10,210.
□
Blind,
veteran with service-connected disability or veteran’s surviving spouse,
surviving spouse of veteran deceased in service, veteran of wars before WWI,
pensioned veteran, their surviving spouse, or active military, or surviving
spouse of non-disabled or non-pensioned veteran of the Korean, WWII.
Petitioner:________________________________________________________
Address of
Property:________________________________________________
1.
Current
property tax due:
Taxable Value $__________
x millage rate __________
Amount due
$__________
2.
Homestead
Property Tax Credit
(see appropriate Homestead Property Tax
Credit Calculation
Sheet) $__________
3.
Taxes owed by
Petitioner
(subtract line 2 from line
1) $__________
4.
Gross Income
from all sources $__________
5.
Extenuating
circumstances $__________
6.
Income
subject to pay tax liability
(subtract line 5 from line
4) $__________
7.
Allowable tax
amount (see page 4)
(line 6 x appropriate tax liability %)
$__________
8.
Amount that
needs to be adjusted
(line 3 minus line 7; if less than zero,
enter
none)
$__________
9.
Taxable value
reduction
(line 8 divided by millage
rate) $__________
10.
New Taxable
Value
(taxable value minus line 9)
$__________
Property Tax Credit
Calculation Sheets
□
Under 65, no disabilities,
not a veteran.
1.
Total Gross Household Income
$__________
2.
Taxable Value of Homestead Property
$__________
3.
Estimate of Taxes:
Taxable
Value $__________
x millage
rate __________
Taxes: $__________
4. Petitioner’s Tax
Responsibility
(3.5% of Total Household Income)
$__________
5.
State Homestead Property Tax Credit
(line 3 minus line 4; maximum $1,200)
$__________
□
Over 65, paraplegic,
quadriplegic or hemiplegic (as defined under Social Security Guidelines 42
USC 416) with income greater than $10,210.
1.
Total Gross Household Income
$__________
2.
Taxable Value of Homestead Property
$__________
3.
Estimate of Taxes:
Taxable
Value $__________
x millage
rate __________
Taxes: $__________
4. Petitioner’s Tax
Responsibility
(3.5% of Total Household Income)
$__________
5.
State Homestead Property Tax Credit
(line 3 minus line 4; maximum $1,200)
$__________
□
Over 65, paraplegic,
quadriplegic or hemiplegic (as defined under Social Security Guidelines 42
USC 416) with income less than $10,210.
1.
Total Gross Household Income
$__________
2.
Taxable Value of Homestead Property
$__________
3.
Estimate of Taxes:
Taxable
Value $__________
x millage
rate __________
Taxes: $__________
4. Petitioner’s Tax
Responsibility
3% x Total household gross income $9,342 to $10,209
2% x Total household gross income $8,321 to $9,341
1% x Total household gross income $7,297 to $8,320
0% x Total household gross income less than
$7,296
$__________
5.
State Homestead Property Tax Credit
(line 3 minus line 4; maximum $1,200)
$__________
□
Blind, veteran with
service-connected disability or veteran’s surviving spouse, surviving spouse
of veteran deceased in service, veteran of wars before WWI, pensioned
veteran, their surviving spouse, or active military, or surviving spouse of
non-disabled or non-pensioned veteran of the Korean, WWII.
1.
Total Gross Household Income
$__________
2.
Taxable Value of Homestead Property
$__________
3.
% of tax relief (percent of tax relief for the
SEV of your home from the Current Tax
Table form)
$__________
4. Estimate of taxes:
Taxable
Value $__________
x millage
rate __________
Taxes: $__________
5.
State Homestead Property Tax Credit
(line 3 minus line 4; maximum $1,200)
$__________
THE GENERAL PROPERTY TAX
ACT (EXCERPT)
Act 206 of 1893
211.7u Principal residence of persons in poverty; exemption from
taxation; applicability of section to property of corporation; eligibility
for exemption; application; policy and guidelines to be used by local
assessing unit; duties of board of review; appeal of property assessment;
“principal residence” defined.
Sec. 7u. (1) The principal
residence of persons who, in the judgment of the supervisor and board of
review, by reason of poverty, are unable to contribute toward the public
charges is eligible for exemption in whole or in part from taxation under
this act. This section does not apply to the property of a corporation.
(2) To be eligible for exemption under this section, a person shall do all
of the following on an annual basis:
(a) Be an owner of and occupy as a principal residence the property for
which an exemption is requested.
(b) File a claim with the supervisor or board of review on a form provided
by the local assessing unit, accompanied by federal and state income tax
returns for all persons residing in the principal residence, including any
property tax credit returns, filed in the immediately preceeding year or in
the current year. The filing of a claim under this subsection constitutes
an appearance before the board of review for the purpose of preserving the
claimant’s right to appeal the decision of the board of review regarding the
claim.
(c) Produce a valid driver’s license or other form of identification if
requested by the supervisor or board of review.
(d) Produce a deed, land contract, or other evidence of ownership of the
property for which an exemption is requested if required by the supervisor
or board of review.
(e) Meet the federal poverty guidelines updated annually in the federal
register by the United States department of health and human services under
authority of section 673 of subtitle B of title VI of the omnibus budget
reconciliation act of 1981, Public Law 97-35, 42 U.S.C. 9902, or alternative
guidelines adopted by the governing body of the local assessing unit
provided the alternative guidelines do not provide income eligibility
requirements less than the federal guidelines.
(3) The application for exemption under this section shall be filed after
January 1 but before the day prior to the last day of the board of review.
(4) The governing body of the local assessing unit shall determine and make
available to the public the policy and guidelines the local assessing unit
uses for the granting of exemptions under this section. The guidelines
shall include but not be limited to the specific income and asset levels of
the claimant and total household income and assets.
(5) The board of review shall follow the policy and guidelines of the local
assessing unit in granting or denying an exemption under this section unless
the board of review determines there is substantial and compelling reasons
why there should be a deviation from the policy and guidelines and the
substantial and compelling reasons are communicated in writing to the
claimant.
(6) A person who files a claim under this section is not prohibited from
also appealing the assessment on the property for which that claim is made
before the board of review in the same year.
(7) As used in the section, “principal residence” means principal residence
or qualified agricultural property as those terms are defined in section
7dd.
History:
Add. 1980, Act 142, Imd. Eff. June 2, 1980; -- Am. 1993, Act 313, Eff. Mar.
15, 1994; -- Am. 1994, Act 390, Imd. Eff. Dec. 29, 1994; -- Am. 2002, Act
620, Imd. Eff. Dec. 23, 2002; -- Am. 2003, Act 140, Eff. Jan 1, 2004.
Popular name: Act 206
Poverty Exemption Application Form
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