Senate Bill 1042 Summary

• Amends the Income Tax Act of 1967 to define "disabled veteran" as a veteran meeting one of three criteria: permanently and totally disabled at 100% rate by the Department of Veterans Affairs, receiving pecuniary assistance for specially adapted housing, or rated as individually unemployable.

• Eliminates the $135,000 homestead taxable value cap for property tax credits for disabled veterans and their surviving spouses beginning in tax years after December 31, 2017.

• Removes income limits and household resource reduction requirements for disabled veterans and widows/widowers of disabled veterans claiming homestead property tax credits, allowing them 100% credit on property taxes.

• Increases the homestead property tax credit cap from $1,200 to $1,500 annually beginning in 2018 tax year, with annual adjustments based on the consumer price index beginning in 2021.

• Repeals section 7b of the General Property Tax Act (MCL 211.7b) effective December 31, 2017, eliminating the prior homestead property tax exemption for senior citizens and disabled individuals.