MI HB5759

Establishes the "Disabled Veteran's Homestead Specific Tax Act" to exempt homesteads owned by eligible disabled veterans and surviving spouses from ad valorem property taxes, effective for taxes levied after December 31, 2017.

Defines "eligible disabled veteran" as a Michigan resident honorably discharged from the U.S. Armed Forces who is permanently disabled per U.S. Department of Veterans Affairs, receiving disability housing assistance, or rated as individually unemployable.

Levies a specific tax on exempt homesteads calculated by multiplying applicable mill rates by the property's taxable value, then discounting by 100% for certain disability categories or by the veteran's disability severity rating percentage.

Allows disabled veterans and surviving spouses to claim exemptions for school district operating taxes if the property is their principal residence and they claim exemptions under existing law.

Requires tax collecting officers to disburse the specific tax revenue to state and local taxing units in the same proportions as regular property tax collections, with unpaid taxes subject to forfeiture and foreclosure proceedings.