MI HB6513

Creates two income eligibility tiers for poverty-based property tax exemptions: claims filed before January 1, 2023 must meet federal poverty guidelines; claims filed after December 31, 2022 must have household income not exceeding 150% of federal poverty guidelines.

Allows local assessing units to adopt alternative income guidelines for eligibility, provided they are not less restrictive than the federal or 150% federal standards respectively.

Permits extended exemptions lasting up to 3 additional years without reapplication for property owners receiving fixed public assistance income (such as Social Security or Supplemental Security Income), provided ownership and occupancy status remain unchanged.

Requires property owners receiving extended exemptions to file an affidavit rescinding the exemption within 45 days of any change in ownership, occupancy, household assets, or income that affects eligibility.

Establishes audit requirements for local assessing units with extended exemptions and imposes repayment obligations with 1% monthly interest for property owners who fail to timely report eligibility changes.