The bill amends the General Property Tax Act of 1893, specifically section 7kk, to update the provisions regarding tax exemptions for eligible nonprofit housing properties. It introduces new language that allows charitable nonprofit housing organizations to apply for tax exemptions from the state tax commission, which must respond within 60 days of receiving the application. The exemption is effective from December 31 of the year it is approved. The bill also clarifies the duration of the exemption, stating that it can last for up to five years for residential building lots or three years for other types of eligible nonprofit housing properties, contingent upon certain conditions such as occupancy by an income-eligible person or transfer of ownership.

Additionally, the bill replaces the term "low-income person" with "income-eligible person" and raises the income threshold from 80% to 120% of the statewide median gross income for eligibility. It also modifies the definitions related to the properties and organizations involved, ensuring that the language reflects the updated criteria for tax exemptions. The changes aim to streamline the process for nonprofit housing organizations to obtain tax relief while ensuring that the properties serve income-eligible individuals as intended.

Statutes affected:
Senate Introduced Bill: 211.7