Poverty Exemption Forms and Policy Related to PA 253 of 2020

Poverty Exemption Forms & Policy Related to PA 253 of 2020

Public Act 253 of 2020, as updated by Public Act 191 of 2023.  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.

To request a poverty exemption, a taxpayer must file:

Form 5737 - Application for MCL 211.7u Poverty Exemption

Form 5739 - Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty

All required additional documentation (such as federal/state income tax returns)

PA 253 allows Board of Review to grant either a 100%, 75%, 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

Additional Resources

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

Poverty Exemption Taxpayer Fact Sheet

Bulletin 22 of 2023 - Poverty Exemption