Chapter 44: Taxation - SoapBox Detroit

Article 4: Personal Property Taxes, Real Property Taxes, and Special Assessments

Division 1: Generally

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Division 8: Homeowners Property Exemption

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Section 44-4-151: Purpose

(a) To set forth the procedures and standards for the submission and review of applications for property tax exemptions, in whole or in part, for persons who, in the judgment of the Board of Review by reason of poverty, are unable to contribute toward the public charges.

(b) This ordinance title has been changed from the Homeowners Property Tax Assistance Program to the Homeowners Property Exemption. The title “Homeowners Property Exemption (H.O.P.E.)” speaks to exactly what the ordinance expects to provide, and creates an acronym that offers encouragement.

Codified by Ord. No. 28-19 (JCC 7/23/2019, Passed 9/10/2019, Approved 9/11/2019, Published 9/20/2019, Effective 10/1/2019); Amended by Ord. No. 2021-48 (JCC 11/3/2021, Passed 11/16/2021, Approved 11/22/2021, Published 12/1/2021, Effective 12/1/2021).

Section 44-4-152: Ownership and occupancy required

The applicant must be an owner and occupy as a principal residence the property for which the exemption is requested. This applicant shall affirm this ownership and occupancy status by completing and filing a form provided by the State Tax Commission with the Office of the Assessor.

Section 44-4-153: Annual application required; time of submission

(a) Except as otherwise provided by Subsection 7u(6) and (8) of the Michigan Property Tax Act, being MCL 211.7u(6)
and (8), the applicant must submit a new application each year to qualify for the exemption provided for in the Homeowners Property Exemption

(b) The application for an exemption shall be filed after January 1st but prior to the last day of the December Board of Review.

Section 44-4-154: Application for Homeowners Property Exemption; availability

(a) Homeowners Property Exemption applications, as prescribed and provided by the State Tax Commission, shall be available to the general public at the Office of the Assessor, City of Detroit Recreation Centers, Department of Neighborhood Offices, and on the City’s website under all web pages that reference property taxes or the payment of property taxes. In addition:

(1) The Office of the Assessor shall post a notice near the Homeowners Property Exemption applications and on the Property Assessment Documents Page that advises residents that the applicant may speak with a representative of the Board of Review if they have any questions about the application; and

(2) The Board of Review shall maintain and provide, upon request, a resource list of organizations that will assist in the completion of the Homeowners Property Exemption application.

(b) An application for Homeowners Property Exemption made pursuant to Section 7u of the Michigan General Property Tax Act, being MCL 211.7u, shall be made by the property owner on a form that is provided by the State Tax Commissioner as set forth in Subsection (a) of this section.

(c) The applicant shall produce with the application:

(1) A deed, land contract, or any other recorded proof of ownership, including, but not limited to, a probate order or judgment of divorce;

(2) A valid driver’s license, or any unexpired government issued identification so long as it includes the applicant’s photograph and address; and

(3) Complete federal and state income tax returns, including schedules, for all adults for the current year, provided, that tax returns are not required for a person residing in the principal residence if that person was not required to file a federal tax return in the tax year in which at the exemption is claimed or in the immediately preceding tax year, instead, an affidavit on a form provided for by the State Tax Commission may be accepted.

(d) The applicant shall not be required to provide utility bills to support the claim of occupancy of the subject property.

(e) In the instance of physical impairment the Board of Review may be contacted to pick up the application.

(f) The application packet shall include a document checklist of all items needed for the application to be considered by the Board of Review and language strongly encouraging the applicant to apply as soon as possible.

Section 44-4-155: Guidelines

(a) City Council shall determine and make available to the public the policy and guidelines that the City uses for the granting of exemptions.

(b) The guidelines must include, but are not limited to, the specific income and asset levels of the claimant and total household income and assets to quality for property tax exemption for the applicant.

(1) Qualifying levels of household income shall be computed based on the following table:

Household Size	Full Exemption 100%	Partial Exemption 50%	Partial Exemption 25%
1	138% of FPL	159% of FPL	179% of FPL
2	123% of FPL	138% of FPL	152% of FPL
3	108% of FPL	120% of FPL	131% of FPL
4	104% of FPL	114% of FPL	124% of FPL
5	100% of FPL	109% of FPL	117% of FPL
6	100% of FPL	108% of FPL	115% of FPL
7	100% of FPL	107% of FPL	113% of FPL
8 or greater	100% of FPL	106% of FPL	112% of FPL

[FPL = federal poverty level]

(2) For the purposes of this section, “federal poverty level” means the most recently available release of the federal poverty guidelines applicable to the State of Michigan that are published and adjusted annually by the United States Department of Health and Human Services.

(3) The maximum value of asset levels of the claimant established by the guidelines shall not be less than $12,000.00.

(c) The Board of Review shall submit the proposed guidelines to City Council by October 15th for consideration and adoption via resolution for the next tax
year.

(d) The policy and guidelines shall include the appeal process for applicants that are denied relief.

(e) The policy and guidelines must describe, in clear language, the conditions that qualify applicants for a multiyear exemption as described in MCL 211.7u(6) and (8).

(f) As provided for in the Michigan General Property Tax Act, being MCL 211.1 et seq., the Board of Review shall follow the policy and guidelines of the City in granting or denying an exemption.

Section 44-4-156: Relief

(a) If a person claiming an exemption is qualified based on the guidelines referenced in Section 44-4-155 of this Code, the Board of Review shall grant an exemption in whole or in part.

(b) Exemptions may be granted in the following levels:

(1) A full exemption equal to a 100% reduction in taxable value for the tax year in which the exemption is granted.

(2) A partial exemption equal to 1 of the following:

a. A 50% or 25% reduction in taxable value for the tax year in which the exemption is granted; or

b. Any other percentage reduction in taxable value as approved by the State Tax Commission for the tax year in which the tax exemption is granted, to be applied in the form and manner prescribed by the State Tax Commission.

Section 44-4-157: Notice of the Homeowners Property Exemption; outreach

(a) The City shall include on the Notice of Assessment mailed to homeowners the second week in January that the Homeowners Property Exemption help is available and contact information to request or obtain an application.

(b) The Assessor’s Office or the Board of Review shall mail an informational packet regarding eligibility and applications for the Homeowners Property Exemption to all residential homeowners In the City at least two times each calendar year.

(c) The Assessor’s Office or the Board of Review shall conduct at least three community based educational programs each calendar year. These events may be conducted in-person or by electronic media.

(d) The City shall provide and maintain easily accessible information on its website that describes the Homeowners Property Exemption, the program guidelines and the process to apply.

Section 44-4-158: Decision letter

(a) All applicants for the Homeowners Property Exemption shall receive a written notification of the Board of Review’s decision within ten days after the close of the Board of Review.

(b) The Board of Review shall provide notice of all approved application by letter stating in clear language that the application for exemption was approved and the percentage level of the discount granted. The notice must also state that the taxpayer will receive a revised tax bill within 30 days of the date of the approval letter, if approved in July or December, and that the taxpayer is still obligated to pay the solid waste fee and any non exempt portion of their property tax bill.

(c) If the Board of Review denies an application the notice shall include the reasons for denial and provide the process and timeline for the appeal.

(d) If the Board of Review fails to consider an application the notice shall include information as to the inadequacy or untimeliness of the application.

Section 44-4-159: Appeal of assessment preserved

If they are an applicant for the Homeowners Property Exemption, a person is not prohibited from also appealing the assessment on the same property before the Board of Review in the same year.

Section 44-4-160: Tax bill

(a) Tax payers that receive a partial or complete property tax exemption will be issued a revised tax bill within 30 days after the close of the July or December Board of Review, whichever is applicable.

(b) Except for a partial exemption, the revised tax bill will reflect the amount of the reduced solid waste fee.

Section 44-4-161: Data Confidentiality

Except as otherwise provided by applicable law, the Board of Review and the Assessors Office shall not knowingly
use or disclose to third parties confidential information which is gained through the administration of this program and is not available to members of the public.

Sections 44-4-162 to 44-4-180: Reserved