Governor Rick Snyder of Michigan
On February 5, 2014, Governor Snyder proposed to expand the Homestead Property Tax Credit to provide $102.7 million in additional property tax relief to seniors, working families and the disabled. The following calculator has been created to help taxpayers estimate how much their Homestead Property Tax Credit would increase under the Governor’s plan.
Currently, the general Homestead Property Tax Credit is available to homeowners and renters with incomes up to $50,000. It is calculated by subtracting 3.5 percent of a taxpayer’s income from the amount of property taxes on the taxpayer’s home and multiplying the result by 60 percent. An enhanced credit is available for low-income seniors and disabled citizens. Renters calculate their credit using 20 percent of their rent.
Beginning with tax year 2013, the Governor proposes two significant changes to the calculation of the Homestead Property Tax Credit. First, the governor proposes to change the income multiplier from 3.5 percent to 3.0 percent, allowing a greater percentage of property taxes to be refunded. Second, the Governor proposes to extend the credit to taxpayers with income up to $60,000.
The proposed changes will provide additional property tax relief to an estimated 1.3 million taxpayers. Seniors will receive approximately 33 percent of this relief.
To estimate the amount your Homestead Property Tax Credit would change under this proposal, fill in the following information in the spaces below:
After you have submitted your information, press the “Calculate Tax Credit” button and the calculator will produce the following:
In order to be eligible for the Homestead Property Tax Credit, the taxable value of your home can not exceed $135,000.