LANSING, Mich. — The House of Representatives on Tuesday approved Sen. Jon Bumstead’s bill that would ensure certain military veterans receive property tax exemptions.
Senate Bill 784 would ensure 100% disabled military veterans and the spouses of those killed in action continue to receive a 100% property tax exemption through the current process and would also set a $2,000 property tax cap for veterans who are more than 50% disabled but less than 100% disabled.
The bill also would shift the tax burden from local governments by requiring the state to reimburse them for the property tax exemptions. This will help to relieve local municipalities from some of the financial stress they currently face.
“This is a small but important reform that protects our 100% disabled veterans property tax credits and the process they use to obtain them,” said Bumstead, R-North Muskegon. “By putting the burden of administering the credit on the state’s shoulders, we’d alleviate the financial stress many local governments are experiencing throughout Michigan. The process for eligible veterans to claim their credit will remain the same, while cities, villages, townships, and counties get much-needed financial relief — it’s a win-win.”
SB 784 was part of a larger family inflation relief plan that would provide Michigan workers, families, seniors and veterans $2.5 billion in savings to better afford the increasing costs of living in the state.
The MI Family Inflation Relief Plan will also help residents by:
- Offering a $500 per child tax credit for those 19 and under.
- Increasing the personal income tax deduction by $1,800.
- Raising the personal exemption for seniors 67 and older to $21,800 for individuals and $43,600 for couples and tying subsequent increases to the rate of inflation.
- Lowering the state income tax to 4%.
- Restoring the Earned Income Tax Credit to 20%.
SB 784 now goes to the governor for consideration, joining House Bill 4568, which advanced last week.