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HB 4041 Michigan House · 2025-2026 Regular Session

Property tax: exemptions; continuation of poverty exemption, without subsequent application, for homeowner who previously established eligibility; provide for in certain circumstances. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).

HB 4041 would automatically renew property tax exemptions for eligible homeowners who previously qualified under the poverty exemption program, eliminating the need for them to reapply annually. It directly affects low-income homeowners in Michigan who have already established eligibility for the exemption under current law. The bill amends Michigan law to require automatic continuation of this exemption in specified circumstances, reducing administrative burdens for qualifying residents. This change streamlines the process by removing annual application requirements for those already verified as eligible.
Issues: ✓ Budget & TaxesSupports Budget & TaxesAutomatically renews property tax exemptions for low-income homeowners, reducing their tax burden and administrative hassle per tax relief indicators.90% confidence ✓ HousingSupports HousingAutomatically renews property tax exemptions for low-income homeowners, reducing financial burden and preventing displacement - directly advancing housing affordability for qualifying residents.92% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 30, 2025 Last action Oct 28, 2025
Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → Substitute (H-3) · 4 edits
MODERATE
This bill amendment updates the Michigan General Property Tax Act to clarify that the poverty exemption does not apply to corporations and adds a new requirement for applicants to provide proof of ownership (such as a deed) upon request. It also expands the list of required documents for the exemption claim to include federal and state income tax returns for all household members, with an affidavit option for those not required to file taxes. Additionally, the amendment clarifies the rules for extending exemptions for individuals on fixed incomes, specifying that extensions are limited to three years and require reapplication.
Scope change
The bill's scope is narrowed by explicitly excluding corporations from the poverty exemption, which was previously ambiguous. It also tightens eligibility verification by requiring proof of ownership and income documentation for all household members.
ELIGIBILITY

Added a new provision stating that the principal residence exemption is not available to corporations.

REQUIREMENT

Added a new requirement for applicants to produce a deed, land contract, or other evidence of ownership if requested by the supervisor or board of review.

Updated the documentation requirements to include federal and state income tax returns for all persons residing in the principal residence, with an affidavit alternative for those not required to file.

TIMELINE

Clarified that extensions for fixed-income individuals are limited to a maximum of three years and must be claimed by reestablishing eligibility.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
6
Key actions
1
Committee
3
Oct 28, 2025
Committee
referred to second reading
lower
Oct 28, 2025
Lower · Passed
reported with recommendation with substitute (H-3)
lower
Jan 30, 2025
Committee
referred to Committee on Finance
lower
Jan 30, 2025
Introduced
introduced by Representative Rep. Tyrone Carter
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
TC
Tyrone Carter
DDemocratic
MI
1