Property Tax Relief / Poverty Exemption

For taxpayers who may be experiencing difficulty in paying their property taxes at this time, there may be help.  Under the City of Owosso Property Tax Poverty Exemption Policy and Guidelines, you can receive partial relief from the Board of Review.

The General Property Tax Act, 211.7u, describes the poverty exemption as; The homestead of persons who, in the judgment of the supervisor and board of review, by reason of poverty, are unable to contribute toward the public charges is eligible for exemption in whole or in part from taxation under this act.

To qualify, you must first file an exemption application in its entirety and provide the income tax information for all persons living in the home.  A poverty exemption can only be considered on a person’s principal residence.  Since this exemption is only granted for one year, you must file annually. 

To be considered for this exemption, you must have an income less than or equal to the Federal Guidelines for the Poverty Income Level.  You must also satisfy the asset test as established in the policy and guidelines.  Some of the documents required are State and Federal Income Tax Returns, Income and Expense Statements along with documents that support the statements, proof of ownership as your principal residence, Michigan driver’s license or proper identification and any other data requested on the application that will support the claim.

Poverty Exemption Policy & Guidelines

The City of Owosso will grant partial exemptions due to poverty according to Section 211.7u of the Michigan Compiled Laws.  Property Tax Poverty exemptions must be applied for each year. 

The Assessor and the Board of Review will apply the guidelines as adopted by the City uniformly to all applicants without prejudice and shall not deviate from the adopted guidelines without substantial and compelling reasons.  Any such deviation shall be communicated in writing to the applicant. (211.7u).

The Assessor’s office will determine the estimated property tax liability for the applicable tax year and the estimated State homestead credit for each applicant.  The exemption shall not exceed the tax liability minus the homestead credit refund.  (Example:  if the tax liability is $1000. and the homestead credit is $300., the exemption shall not exceed $700.)

The Board of Review may deviate from the above policy where there are substantial and compelling reasons and such substantial and compelling reasons are communicated in writing to the City Council and the claimant (211.7u).

Guidelines

The applicant shall:

Be the owner and occupant of the homestead property for which an exemption is applied (211.7u).

File a claim (application) on the form provided by the City Assessor’s office.  The filing of a claim constitutes an appearance before the Board of Review for the purpose of preserving the claimant’s right to appeal (211.7u).  The application form shall be fully completed.

Sign the application at the Assessor’s office when the application is returned.  If the applicant cannot personally return the application, a notarized application is acceptable.

Supply a copy of federal and state income tax returns for all persons residing in the homestead, including any property tax credit returns, filed in the immediately preceding or in the current year (211.7u).

Supply a copy of proof of income for the most recent one-month period for all household members (current pay stubs, benefit statement, etc.)

Supply identification, proof of residency and ownership if requested by the Assessor or Board of Review (211.7u).

If the applicant fails to supply the required documents or if it is found that the information supplied is fraudulent, the application shall be denied.

Income Test

Applicant’s income shall not exceed the federal poverty income thresholds as defined and determined annually by the U.S. Department of Commerce.