MI HB5278

Amends the Income Tax Act of 1967 to modify property tax credit calculations for non-senior citizens, establishing a 60% credit for property taxes exceeding 3.5% of total household resources.

Creates a tiered credit system for senior citizens with household resources between $21,000 and $30,000, with credit percentages declining from 96% to 60% as income increases.

Provides senior citizens and disabled individuals (paraplegic, hemiplegic, quadriplegic, totally and permanently disabled, deaf, or blind) with credits based on a percentage table ranging from 0% to 3.5% of household resources.

Adds new subdivision (f) effective for tax year 2014 and thereafter, allowing eligible servicemembers, veterans, and eligible widows/widowers who rent a homestead and receive 100% disability compensation from the Veterans Administration to claim a credit equal to 20% of annual rent paid, not exceeding 100% of property taxes on that homestead.

Maintains a maximum annual property tax credit of $1,200 per year and limits total credits under this section and part 361 of the Natural Resources and Environmental Protection Act to the total property tax due and payable by the claimant.