Michigan House committee OKs plan to close tax loophole for outofstate homeowners

Michigan House committee OKs plan to close tax loophole for outofstate homeowners

first_img Legislation to prevent out-of-state residents from unfairly taking advantage of property tax exemptions when they buy second homes in Michigan was unanimously approved today by the House Tax Policy Committee.The bills are sponsored by state Reps. Dave Pagel of Berrien Springs and Kim LaSata of Bainbridge Township. The issue is key in the southwest part of the state near Lake Michigan, where many out-of-state residents buy second homes.Some property owners intentionally declare a homestead property tax exemption on their second home in Michigan, while at the same time claiming a similar exemption on their primary residence in another state. This practice, which improperly reduces the amount of taxes collected for schools and local governments, should not be allowed for any amount of time under Michigan law.“When out-of-state residents improperly claim this second exemption, it takes money away from our schools and community services,” LaSata said. “This practice must stop.”The new legislation would clarify and close loopholes in Michigan law. If a property owner has claimed a principal residence exemption in Michigan while claiming a similar exemption in another state, the Michigan exemption would be rescinded.A claim for a Michigan homestead tax exemption could be denied and enforced retroactively if it is discovered the property owner had claimed a similar exemption in another state.Intentional violators could face a misdemeanor criminal charge.LaSata and Pagel said they welcome out-of-state property owners who want to buy homes in Michigan, but emphasized tax laws should be followed fairly and consistently.“This legislation is needed to end an unfair practice that hurts our communities financially,” Pagel said. “Too many homeowners are using this loophole and not facing any consequences, even after they are caught.”###The legislation: House Bills 4335-6. Categories: LaSata News,News,Pagel News 17May Michigan House committee OKs plan to close tax loophole for out-of-state homeownerslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments