Council Comment 743

Citizens Research Council of Michigan625 SHELBY STREET, DETROIT, MI 48226-4154C o u n c i l (313) 961-5377909 MICHIGAN NATIONAL TOWER, LANSING, MI 48933-1738(517) 485-9444C o m m e n t s :No. 743 October 9, 1963HOMESTEAD EXEMPTION FOR SENIOR CITIZENSGovernor’s PlanAs part of his tax reform program, the Governor proposes (H. B. 28) that a citizenwho has attained the age of 65, or 62 if an unmarried woman, may defer the pay-ment of property taxes and special assessments on a homestead in an amount not toexceed $200 per year, if:1. The owner is a citizen of the United States, has resided in Michigan forten years or more, has owned the homestead for five years or more, andhas a family income of $2,000 or less.2. The homestead must be a single family unit, owned and occupied solelyas a residence, with not to exceed one acre of land when located withinan incorporated city or village, or 40 acres outside such city or village.The homestead can not have a value in excess of $5,000 state equalized(i.e., an average of $10,000 true cash value).3. The state would reimburse local governments for revenue lost under theplan. Deferred taxes and special assessments would be a lien against thehomestead in favor of the state, collectible with interest (five percent),within the limit of the value of the homestead, at death or upon sale ofthe property.If all of those eligible took advantage of the deferment, about $6 million in generalproperty taxes would be involved ...