Legislative Analysis
Phone: (517) 373-8080
DISABLED VETERANS’ PROPERTY TAX EXEMPTION
http://www.house.mi.gov/hfa
Senate Bill 176 (S-3) as reported and amended Analysis available at
Sponsor: Sen. Sylvia Santana http://www.legislature.mi.gov
Senate Bill 330 (S-1) as reported and amended
Sponsor: Sen. Mary Cavanagh
Senate Bill 364 (S-1) as reported from House committee
Sponsor: Sen. John N. Damoose
House Committee: Military, Veterans and Homeland Security
Senate Committee: Finance, Insurance, and Consumer Protection
Complete to 9-28-23
(Enacted as Public Acts 150, 151, and 152 of 2023)
SUMMARY:
Senate Bill 176 would amend the General Property Tax Act to provide that a disabled veteran
or their surviving spouse only needs to file an application for the Disabled Veterans Property
Tax Exemption once, rather than refiling every year.
Currently, the act provides for the exemption of real property owned and used as a homestead
by a disabled veteran or their surviving spouse (if the veteran was eligible for the exemption
prior to their death) as long as the spouse does not remarry. In order to obtain this exemption,
the act requires the veteran or spouse (or their legal designee) to annually file an affidavit with
the local assessing officer between the beginning of the tax year and the final adjournment of
the local board of review.
The bill would provide that, for an exemption granted for taxes levied on or after January 1,
2025, the exemption remains in effect until it is rescinded by the recipient of the exemption or
denied by the local assessor. In addition, the bill would replace the required affidavit with an
application in a form and manner established by the State Tax Commission (STC).
The bill would also specify that the exemption remains available to property owned and used
as a homestead by a surviving spouse after the disabled veteran’s death.
Finally, the bill would provide that the application could be submitted any time after January
1 and before December 31 of each calendar year.
Proration of exemption
The bill would provide that an exemption granted to a disabled veteran or their surviving
spouse applies to all property taxes during the current tax year that have been paid by the
qualifying individual and all taxes that would have been owed if the property were not exempt.
If the individual did not own and use the property as a homestead for the entire tax year, the
exemption would be prorated using one of the following methods:
• Using the closing or other purchase documents to calculate the amount of taxes to be
exempted. No refund would be provided to the seller by the exempt individual.
House Fiscal Agency Page 1 of 3
 • By calculating the amount of taxes to be exempted by dividing the total property taxes
levied in a year by 365 and multiplying that number by the number of days the exempt
individual would occupy and own the property as a homestead.
• Using a proration that takes the effective date of any removal of the exemption into
account, by dividing the total property taxes levied in a year by 365 and multiplying
that number by the number of days the individual used and owned the property as a
homestead while qualified for the exemption.
Own or owned would mean one of the following:
• For a disabled veteran, that legal title to the property is held solely by that
individual or jointly by that individual and that individual’s spouse.
• For a surviving spouse, that legal title to the property is held solely by that
individual.
MCL 211.7b
Senate Bill 330 would establish procedures for recission of a disabled veterans’ property tax
exemption and for local assessors to audit and deny claims for an exemption.
Under the bill, an individual would be required to file a form rescinding their exemption within
45 days of either of the following:
• The individual ceases to use and own as a homestead the property for which the
exemption was granted.
• The individual no longer meets the requirements to receive the exemption.
The bill would also require local assessing units to implement an audit program, in a form and
manner prescribed by the STC, that includes, at a minimum, the audit of all information filed
in an application for the disabled veterans’ property tax exemption. An audit would occur not
more often than once every three years, unless there is a reasonable belief that the property is
ineligible for the exemption. An assessor could deny a new or existing claim for an exemption
after an audit. Existing claims could be denied for the current year and up to three immediately
preceding calendar years. If an audit determined a property to be ineligible for exemption, the
assessor would notify the individual in a form and manner prescribed by the STC of the denial,
of the reason for the denial, and that the decision may be appealed in the residential and small
claims division of the Michigan Tax Tribunal within 35 days of the notice.
Upon denial of a claim, the tax roll would be amended to reflect the removal of the exemption
and a corrected or supplemental tax bill would be issued withing 30 days with an interest rate
of 1% per month or fraction of a month computed from the date the taxes were last payable
without interest. Interest on any tax on a corrected or supplemental tax bill would begin to
accrue at the same rate 60 days after the bill was issued. Taxes on these bills would be returned
as delinquent on March 1 in the year immediately succeeding year.
Proposed MCL 211.7c
House Fiscal Agency SBs 176, 330, and 364 as reported and amended Page 2 of 3
 Senate Bill 364 would include the denial of a disabled veterans property tax exemption for the
surviving spouse of a disabled veteran by a board of review during the 2023 tax year among
the qualified errors1 that can be corrected upon appeal to a board of review.
Currently, the act provides that the following issues are qualified errors that are “beyond the
control” of the disabled veteran or their spouse:
• An error made by the local tax collecting unit in the processing of a timely filed
exemption affidavit.
• A delay in the determination by the United States Department of Veterans Affairs that
a veteran is permanently and totally disabled as a result of military service and entitled
to veterans’ benefits at the 100% rate.
MCL 211.53b
Senate Bills 176 and 330 are tie-barred and would not take effect unless both are enacted.
Senate Bill 364 would not take effect unless Senate Bill 176 is also enacted.
FISCAL IMPACT:
As written, the bills would potentially affect both state and local property tax revenue, although
the amounts would likely be small. To the extent that audits reveal exemption claims that were
awarded in error, state and local revenue might increase. To the extent that the board of review
allows claims that were previously denied, state and local revenue would fall. However, as
previously noted, any net impact would be expected to be minimal.
POSITIONS:
Representatives of the following entities testified in support of the bills (9-12-23):
• Department of Treasury
• VetLife
• American Legion
The following entities indicated support for the bills (9-12-23):
• Department of Military and Veterans Affairs
• Michigan Commanders Group
• Michigan Assessors Association
Legislative Analyst: Alex Stegbauer
Fiscal Analysts: Ben Gielczyk
Jim Stansell
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
1
https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/STC/2022/Bulletin-14-of-2022---Qualified-
Errors.pdf
House Fiscal Agency SBs 176, 330, and 364 as reported and amended Page 3 of 3


Statutes affected:
Substitute (S-3): 211.7
Senate Introduced Bill: 211.7
As Passed by the Senate: 211.7
As Passed by the House: 211.7
Senate Concurred Bill: 211.7
Public Act: 211.7
Senate Enrolled Bill: 211.7