This bill amends the State Housing Development Authority Act to expand the powers of Michigan's State Housing Development Authority. The key changes allow the authority to charge fees for its loans and publications, save usable housing from demolition by funding rehabilitation costs, and make mortgage loans to subsequent property buyers even if they do not meet standard income limits. These provisions directly affect the authority's operations and the people seeking affordable housing assistance in the state.
HB 5878 eliminates the personal property tax in Michigan for all items that do not qualify for an existing specific exemption, effective for taxes levied after December 31, 2026. Owners of such property must annually file a statement with their local tax collector to claim this new exemption, while property that already has a designated exemption cannot be claimed under this new rule. The bill also requires local tax units to send summary data to the state Department of Treasury by April 1 each year to track the revenue impact of these new exemptions. This legislation directly affects business owners and individuals holding personal property by removing a tax burden on eligible assets, provided they complete the necessary filing requirements.
This bill amends Michigan's Commercial Redevelopment Act to exempt new, replacement, or restored facilities located in designated HOPE zones from the commercial facilities tax. By removing this specific tax liability for properties in these zones, the legislation aims to provide financial relief to businesses undergoing redevelopment in areas identified for economic growth. The measure is tied to companion bills and will only take effect if all related legislation is passed by the legislature.
HB 5865 establishes a new annual property tax specifically for properties that were previously owned by land banks and sold to clear title issues. This tax is designed to generate revenue for the state and the specific land bank authority that originally sold the property, with funds split evenly between general local taxes and the land bank for future cleanup efforts. The bill includes an exemption for properties located in designated HOPE zones or Renaissance zones, ensuring these areas remain financially supported. Additionally, the tax is treated as a lien on the property, subject to the same collection fees, interest, and foreclosure processes as standard delinquent property taxes.
This bill creates a state income tax credit for owners of mobile home parks who sell their property to current residents or resident associations starting in 2026. To receive the credit, which equals 15% of the sale price, the seller must submit proof that they provided required notice to potential buyers and include the final settlement statement with their tax return. The credit can be claimed by individual owners or by members of flow-through entities that own the park, but any unused portion of the credit cannot be refunded. The legislation also clarifies that the credit only applies to sales made to people already living in the park or to their governing cooperative.
HB 5973 extends the tax deduction for contributions to Michigan's First-Time Home Buyer Savings Account, allowing eligible individuals to lower their state taxable income when they save for a home. The bill amends the state's income tax law to ensure this specific financial benefit remains available for future tax years. By maintaining this provision, the legislation directly affects Michigan residents who utilize the savings account program to purchase their first home.
This bill amends Michigan's Natural Resources and Environmental Protection Act to exempt commercial forestland located in HOPE zones from a specific annual tax per acre. The legislation directly affects landowners in designated HOPE zones by removing their property from the specific tax roll that currently charges a fee ranging from $1.10 to $1.20 per acre, with scheduled increases every five years. By tying this change to a companion bill, the measure ensures that forestland in these economic development areas receives the same tax relief as land in Renaissance zones. If enacted, the exemption applies only for the duration and to the extent specified by the existing HOPE zone act.
This bill modifies Michigan's Enterprise Zone Act to clarify tax exemptions for properties located in Renaissance or HOPE zones, ensuring these areas receive specific tax relief. It explicitly states that casinos and their associated facilities, such as hotels and retail stores, are excluded from these exemptions. The legislation also outlines how any remaining specific taxes not covered by the exemption must be distributed among the local taxing units that originally imposed them. This change is contingent upon the passage of two related companion bills, HB 5852 and HB 5856, before it can take effect.
Senate Bill 965 updates Michigan's use tax laws to clarify registration requirements for businesses and strengthen rules for online marketplace facilitators. The bill mandates that foreign corporations must register for use tax before obtaining permission to do business in the state and requires aircraft lessors to pay use tax on lease receipts instead of sales tax on the full property cost. It also defines marketplace facilitators as entities that must collect and remit use tax on sales made by third-party sellers on their platforms, even if those sellers do not have a physical presence in Michigan. Additionally, the bill limits the ability to sue marketplace facilitators for overpaid taxes and protects them from liability if sellers fail to provide accurate information about their transactions.
SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.
