MI SB1084

Eliminates the existing property tax exemption for disabled veterans and replaces it with a homestead income tax credit process effective January 1, 2023.

Allows disabled veterans, widows/widowers of disabled veterans, and widows/widowers of veterans killed in action to defer property taxes by filing an affidavit authorizing the local tax collecting unit to claim a homestead credit on their behalf under section 521 of the income tax act.

Requires local tax collecting units to defer collection of property taxes during the calendar year an affidavit is filed, with no penalties or interest during the deferment period, pending state approval or rejection of the homestead credit claim.

Expands the definition of "disabled veteran" to include veterans rated 50% or greater disabled (previously only 100% disabled), those with specially adapted housing certificates, and those rated individually unemployable.

Takes effect December 31, 2022, contingent upon Senate Bill No. 783 being enacted into law.