Poverty Exemption Forms & Policy Related to PA 253 of 2020

Public Act 253 of 2020 was signed into law on December 23, 2020.  The Act made several changes to the poverty exemption statute (MCL 211.7u) that will impact how local units, assessors, and boards of review handle the exemption starting with the 2021 tax year.

To request a poverty exemption, a taxpayer must file:

  1. Form 5737 - Application for MCL 211.7u Poverty Exemption
  2. Form 5739 - Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty
  3. All required additional documentation (such as federal/state income tax returns)

​PA 253 allows Board of Review to grant either a 100%, 50% or 25% reduction in taxable value.  No other percentage reductions may be given by the Board of Review unless the local unit has requested and received approval from the State Tax Commission to use another percentage reduction by submitting Form 5738.

Poverty Exemption Forms

  • Form 5737 - Application for MCL 211.7u Poverty Exemption
  • Form 5738 - Request for Approval of Percentage Reduction in Taxable Value for Poverty Exemptions Under MCL 211.7u
  • Form 5739 - Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty
  • Form 4988 - Poverty Exemption Affidavit

 

Policy Regarding Requests for Percentage Reductions in Taxable Value for Poverty Exemptions

Poverty Exemption Taxpayer Fact Sheet

Bulletin 3 of 2021 - Poverty Exemption