Michigan Senate Bill SB0192

Michigan 2025-2026 Regular Session

• Introduced: 3/20/25
• Refer: 3/20/25

Caption

Property tax: exemptions; freeze of taxable value for primary residences of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7zz.

Summary

SB 192 would create a new partial property tax exemption for certain primary residences in Michigan beginning with taxes levied after December 31, 2025. The bill applies to owner-occupied homes held by the taxpayer or close family members, and it is aimed at long-term residents who are either at least 63 years old and have lived in the home for at least 10 consecutive years, or who have lived in the home for at least 30 consecutive years. To qualify, the household’s total gross income must not exceed $40,000. The exemption is structured as a freeze of taxable value: the exempt amount equals the current taxable value minus a “base amount,” which is generally the taxable value in the year the taxpayer first qualifies, adjusted for losses and additions. The bill also limits married couples who maintain separate primary residences to claiming the exemption on only one home, and it directs the Department of Treasury to adopt implementing rules. The measure amends the General Property Tax Act and defines key terms by reference to existing property tax and income tax statutes.

Impact

SB 192 would add a new section to the General Property Tax Act creating a targeted property tax relief program for qualifying long-term, lower-income homeowners. It would affect local property tax collections by reducing the taxable value subject to tax for eligible primary residences, thereby lowering tax bills for qualifying seniors and other long-term residents. The bill also creates new administrative responsibilities for the Department of Treasury and ties eligibility to existing statutory definitions of gross income, taxable value, losses, and additions.

Sentiment

The bill’s caption and structure suggest a generally supportive policy goal of providing property tax relief to senior citizens and other long-term homeowners, especially those with modest incomes. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or formal opposition in the available materials. Based on the text alone, the measure appears designed as a targeted tax break rather than a broad tax reduction.

Contention

The main points of potential contention are likely to be the income cap, the age-and-tenure requirements, and the limitation to one exemption for married individuals with separate primary residences. Some stakeholders may view the $40,000 household income threshold as too restrictive or too generous, depending on policy goals, while others may question whether the 10-year/30-year residency tests fairly target long-term homeowners. Local governments and tax administrators could also be concerned about reduced revenue and the complexity of implementing and verifying eligibility.