MI SB1234

Allows principal residences of persons unable to contribute to public charges due to poverty to receive full or partial exemptions from property tax collection.

Requires annual applications with federal and state income tax returns (or affidavits if not required to file), valid identification, proof of ownership, and compliance with federal poverty guidelines published by the Department of Health and Human Services.

Permits local assessing units to extend exemptions for up to 3 additional years without reapplication for properties initially exempt in 2019-2023 if owners receive fixed public assistance income not subject to significant annual increases.

Requires owners with extended exemptions to file affidavits within 45 days of ceasing occupancy or experiencing changes in assets/income that affect eligibility, with penalties of 1% monthly interest plus repayment of additional taxes if exemptions were improperly retained.

Mandates local assessing units adopting multi-year exemptions to develop and implement audit programs to verify continued eligibility of exempt properties.