MI SB1141

Creates a new property tax credit for homeowners with residential improvements on community land trust property, effective for tax years beginning January 1, 2022.

Allows qualified claimants to claim a credit equal to 100% of property taxes on the underlying land plus a percentage of property taxes on improvements (up to 25% or the appreciation limitation in the land-lease, whichever is less).

Requires claimant household resources to be below 120% of statewide median gross income at point of sale, and the land-lease must have at least 89 years remaining, a sale price below appraised value, and appreciation limitations.

Community land trusts submit applications to the Department of Treasury for certification within 60 days, with the department notifying local assessors to determine separate taxable values for land and improvements.

Claimants can receive the credit as a reduction to income tax liability, a refund if credit exceeds tax liability, or direct state remittance to the local tax collecting unit if property taxes are deferred under MCL 211.7yy.

Enacts only if Senate Bill 1142 is simultaneously enacted into law.