Rep. Howrylak introduces property tax relief bill

State Rep. Martin Howrylak has introduced legislation that will restore the Michigan Homestead Property Tax Credit to many taxpayers who were recently eliminated from qualifying.

Currently, homesteads with a taxable value greater than $135,000 do not qualify for the credit. House Bill 5183 increases that amount to $145,000 and provides for its annual adjustment based on the Consumer Price Index (CPI).

“Many seniors and other hardworking taxpayers have been put under extra pressure since their Social Security and other income are included in the Homestead Property Tax Credit determination,” said Howrylak, R-Troy.  “Many Michigan residents were hit hard this year with the loss of this credit, and this legislation will help alleviate some of that pressure.  In talking with our neighbors in Clawson and Troy this year, the loss of the Homestead Property Tax Credit was of great concern and frustration.  This bi-partisan bill will help to make the credit more attainable for individuals and families who are in need of this tax relief.”

The Homestead Property Tax Credit is currently phased out for people with total household resources between $41,000 and $50,000.  HB 5183 would increase the phase-out to between $51,000 and $70,000, which would be adjusted annually in accordance with the CPI.

The resolution was co-sponsored by 14 other representatives, including Democrats, Republicans and one independent. It now moves to the House Tax Policy for further consideration.