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HomeMy WebLinkAboutResolutions - 1999.05.27 - 25804MAY 27, 1999 REPORT (Misc. #99108) BY: GENERAL GOVERNMENT COMMITTEE - SHELLEY G. TAUB, CHAIRPERSON IN RE: MR#99108, (SUPPORT) HB4032, TAX RELIEF FOR SENIOR CITIZENS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: The General Government Committee, having reviewed the above-referenced resolution on May 17, 1999, reports with the recommendation that the resolution be adopted. Chairperson, on behalf of the General Government Committee, I move the acceptance of the foregoing Report. GENERAL GOVERNMENT COMMITTEE General Government Committee Vote: Motion carried unanimously on a roll call vote with Sever, Friedman-Appel, and Melton absent. COMMISSIONER DISTRICT #18 e DAVID L. MOFFITT APRIL 29, 1999 MISCELLANEOUS RESOLUTION #99 108 BY: COMMISSIONER DAVID L. MOFFITT, COMMISIONER DISTRICT #18 RE: (SUPPORT) HB 4032, TAX RELIEF FOR SENIOR CITIZENS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRPERSON, LADIES AND GENTLEMEN: WHEREAS, the homestead property tax credit or "circuit breaker" provides taxpayers with an income tax credit for the amount of property taxes paid on their homesteads that exceed a certain percentage of household income; and for seniors this credit is 100 percent of the amount by which property taxes exceed 3.5% of household income for those with household incomes over $6000; and WHEREAS, following a lifetime of hard work and sacrifices for their families, our seniors, who often face severely reduced income in their retirement, deserve greater consideration for their property tax burden; and WHEREAS HB 4032, which is cosponsored by Representative Raczkowski, would amend the Income Tax Act to increase the homestead property tax credit available to persons 65 years of age and older, by calculating the credit using 3% of household income rather than 3.5%, and would phase out the $1200 credit maximum by indexing that maximum to the rate of inflation. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby support HB 4032 to provide much -need property tax relief to Michigan Senior Citizens. BE IT FURTHER RESOLVED that certified copies of this resolution be sent to Oakland County's legislators, lobbyists and the Michigan Association of Counties. Chairperson, I move the adoption of the foregoing resolution. HOUSE BILL No. 4032 January 26, 1999, Introduced by Reps. Sanborn, Gilbert, Woronchak, Garcia, Howell, Bisbee and Raczkowski and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 522 (MCL 206.522), as amended by 1996 PA 484. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 522. (1) The amount of a claim made pursuant to this 2 chapter shall be determined as follows: 3 (a) A claimant is entitled to a credit against the state 4 income tax liability equal to 60% of the amount by which the 5 property taxes on the homestead, or the credit for rental of the 6 homestead for the tax year, exceeds 3.5% of the claimant's house- 7 hold income for that tax year OR 3.0% OF THE CLAIMANT'S HOUSEHOLD 8 INCOME FOR THAT TAX YEAR IF THE CLAIMANT IS 65 YEARS OF AGE OR 9 OLDER. 00247'99 RJA 7 1966, Ecru 13 Household income 14 Not over $3,000.00 Percentage .0% . . 1 (b) A claimant who is a senior citizen or a paraplegic, 2 hemiplegic, or quadriplegic is entitled to a credit against the 3 state income tax liability for the amount by which the property 4 taxes on the homestead, the credit for rental of the homestead, 5 or a service charge in lieu of ad valorem taxes as provided by 6 section 15a of the state housing development authority act of 8 125.1415a of the Michigan Compiled Laws 1966 PA 346, 9 MCL 125.1415A, for the tax year exceeds the percentage of the 10 claimant's household income for that tax year computed —a-s- 11 follows IN EITHER OF THE FOLLOWING WAYS: 12 (i) FOR CLAIMANTS WHO ARE YOUNGER THAN 65 YEARS OF AGE: 15 Over $3,000.00 but not over $4,000.00 1.0% 16 Over $4,000.00 but not over $5,000.00 2.0% 17 Over $5,000.00 but not over $6,000.00 3.0% 18 Over $6,000.00 3.5% 19 (ii) FOR CLAIMANTS WHO ARE 65 YEARS OF AGE OR OLDER: 20 HOUSEHOLD INCOME PERCENTAGE 21 NOT OVER $3,000.00 .0% 22 OVER $3,000.00 BUT NOT OVER $4,000.00 1.0% 23 OVER $4,000.00 BUT NOT OVER $5,000.00 2.0% 24 OVER $5,000.00 3.0% 25 (c) A claimant who is totally and permanently disabled is 26 entitled to a credit against the state income tax liability equal 27 to 60% of the amount by which the property taxes on the 00247'99 • . 1 homestead, or the credit for rental of the homestead or for a 2 service charge in lieu of ad valorem taxes as provided in section 3 15a of Act No. 346 of the Public Acts of 1966, THE STATE HOUS- 4 ING DEVELOPMENT AUTHORITY ACT OF 1966, 1966 PA 346, 5 MCL 125.1415A, for the tax year, exceeds the percentage of the 6 claimant's household income for that tax year based on the sched- 7 ule in subdivision (b). 8 (d) A claimant who is an eligible serviceperson, eligible 9 veteran, or eligible widow or widower is entitled to a credit 10 against the state income tax liability for a percentage of the 11 property taxes on the homestead for the tax year not in excess of 12 100% determined as follows: 13 (i) Divide the taxable value allowance specified in section 14 506 by the taxable value of the homestead or, if the eligible 15 serviceperson, eligible veteran, or eligible widow or widower 16 leases or rents a homestead, divide 17% of the total annual rent 17 paid for tax years before the 1994 tax year, or 20% of the total 18 annual rent paid for tax years after the 1993 tax year on the 19 property by the property tax rate on the property. 20 (ii) Multiply the property taxes on the homestead by the 21 percentage computed in subparagraph (1). 22 (e) A claimant who is blind is entitled to a credit against 23 the state income tax liability for a percentage of the property 24 taxes on the homestead for the tax year determined as follows: 25 (i) If the taxable value of the homestead is $3,500.00 or 26 less, 100% of the property taxes. 00247'99 4 1 (ii) If the taxable value of the homestead is more than 2 $3,500.00, the percentage that $3,500.00 bears to the taxable 3 value of the homestead. 4 (2) A person who is qualified to make a claim under more 5 than 1 classification shall elect the 1 classification under 6 which the claim is made. 7 (3) Only 1 claimant per household for a tax year is entitled 8 to the credit, unless both the husband and wife filing a joint 9 return are blind, then each shall be considered a claimant. 10 (4) As used in this section, "totally and permanently 11 disabled" means disability as defined in section 216 of title II 12 of the social security act, 42 U.S.C. 416. 13 (5) A senior citizen who has a total household income for 14 the tax year of $6,000.00 or less and who for 1973 received a 15 senior citizen homestead exemption under former section 7c of the 16 general property tax act, Act No. 206 of the Public Acts of 17 1093 1893 PA 206, may compute the credit against the state 18 income tax liability for a percentage of the property taxes on 19 the homestead for the tax year determined as follows: 20 (a) If the taxable value of the homestead is $2,500.00 or 21 less, 100% of the property taxes. 22 (b) If the taxable value of the homestead is more than 23 $2,500.00, the percentage that $2,500.00 bears to the taxable 24 value of the homestead. 25 (6) For a return of less than 12 months, the claim shall be 26 reduced proportionately. 00247'99 8 Crel . 45 . . • 1 (7) The commissioner may prescribe tables that may be used 2 to determine the amount of the claim. 3 (8) The total credit allowed in this section for each year 4 after December 31, 1975 shall not exceed $1,200.00 per year. 5 (9) The total credit allowable under this act and part 361 6 (farmland and open space pleselvertion) of the natural resources 7 and environmental protection act, Act No. 451 of the Public Acts 9 Compiled Laws 1994 PA 451, MCL 324.36101 TO 324.36117, shall not 10 exceed the total property tax due and payable by the claimant in 11 that year. The amount by which the credit exceeds the property 12 tax due and payable shall be deducted from the credit claimed 13 under part 361 of Act No. 451 of the Public—A-Lts of 1994 THE 14 NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT, 1994 PA 451, 15 MCL 324.36101 TO 324.36117. 00247'99 Final page. RJA Resolution #99108 April 29, 1999 The Vice Chairperson referred the resolution to the General Government Committee. There were no objections. Resolution #99108 May 27, 1999 Moved by Taub supported by Moffitt the General Government Committee Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Taub supported by Moffitt the resolution be adopted. AYES: Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell, Colasanti, Coleman. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on May 27, 1999 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 22th da/of May, 1999. G. William Caddell, County Clerk