Property tax credit will include disabled veterans who rent or lease their homes
LANSING, Mich., Oct. 31, 2023 — State Rep. Natalie Price’s (D-Berkley) legislation to give more disabled veterans access to property tax relief passed the Michigan House of Representatives this afternoon. House Bill 4724 will allow veterans determined to be 100% disabled, or a surviving spouse if the veteran is deceased, to claim an income tax credit for property taxes if they rent or lease their home. Currently, only veterans and spouses who own their home can benefit from this kind of tax relief.
“One hundred-percent disabled veterans deserve this relief, whether they rent or own a home,” Price said. “I am glad we are fixing this oversight in the initial legislation.”
As of Nov. 11, 2013, veterans who own their own home and have been rated by the federal Department of Veteran Affairs as 100% disabled have been able to claim a full exemption of their annual property taxes. HB 4724 uses the same formula renters currently use in law to determine the percentage of property tax that makes up their rent for the purposes of claiming the Homestead Property Tax Credit. It allows 100% disabled veterans who rent and their widows to claim an income tax credit against 100% of their estimated property tax liability.
The Housing Assistance Council has found that around 18.2% of Michigan veterans do not own a home and roughly 21.6% of Michigan veterans are reported to pay too much for their housing. Under HB 4724, an additional 8,000 disabled vets would be eligible for tax relief.
“Disabled veterans rent homes in every one of our great state’s 83 counties,” Price said. “For ten years, these veterans have not been afforded the same benefits as their home-owning counterparts. I am excited to extend this relief to all our Michigan veterans who have sacrificed so much for our country.”
HB 4724 next heads to the state Senate for consideration.