MI SB1335

Creates tax exemption for the increase in taxable value when an elder-friendly dwelling in a neighborhood enterprise zone is transferred to a qualified purchaser (age 65+) beginning December 31, 2010.

Exemption applies only to the amount by which the new property's taxable value exceeds the qualified purchaser's previous principal residence taxable value, and continues until the property is subsequently transferred.

Owner must file an affidavit with the local tax collecting unit by May 1 to claim the exemption, with the assessor determining eligibility and granting or denying the exemption accordingly.

Property owner may appeal denied or modified exemptions to the board of review and then to the Michigan tax tribunal, and may request in writing to withdraw an erroneously granted exemption with penalties and interest waived if corrected tax bill is paid within 30 days.

Married couples filing joint Michigan income tax returns are entitled to no more than one exemption under this section, though only one spouse must be a qualified purchaser.