MI HB6402

Replaces the existing disabled veteran property tax exemption with a property tax deferment program tied to the homestead credit under the Income Tax Act of 1967.

Allows disabled veterans, surviving spouses of disabled veterans, and surviving spouses of veterans killed in action to file an affidavit to defer property taxes while the state claims the homestead credit on their behalf.

Expands the definition of "disabled veteran" to include veterans rated 50% or greater disabled (in addition to existing categories of 100% disabled, specially adapted housing recipients, and individually unemployable veterans).

Requires local tax collecting units to defer property taxes without penalties or interest pending state approval of the homestead credit claim; if the state rejects the claim, unpaid taxes become due with 90 days before penalties and interest apply.

Takes effect December 31, 2022, contingent upon enactment of Senate Bill No. ____ or House Bill No. 6401.