MI SB0783

Adds new Section 521 creating a property tax credit for disabled veterans, widows/widowers of disabled veterans, and widows/widowers of veterans killed in action, effective for tax years beginning January 1, 2023, equal to 100% of property taxes on their homestead up to $2,500.00 annually (adjusted annually for inflation beginning 2024).

Credits claimed under Section 521 are processed through local tax collecting units rather than offset against income tax liability, with the state remitting direct payment to the local unit within 14 days of receiving required documentation.

Modifies Section 520 to exclude disabled veterans claiming under Section 521 from the standard homestead property tax credit, preventing duplicate claims.

Increases the minimum household resources threshold for Section 520 credits from $41,000 to $51,000 beginning in the 2018 tax year, adjusts annually for inflation starting in 2021, and increases the maximum annual credit from $1,200 to $1,500 for tax years after 2017.

Makes technical changes throughout including updating rent credit percentages from 20% to 23% (for tax years after 2017), changing "consumer price index" to "Consumer Price Index," and replacing gendered language with gender-neutral terms.