News Release: Tying Homestead Property Tax Credit Increase to Inflation Would Benefit Low-Income Workers, Seniors
FOR IMMEDIATE RELEASE
(Lansing, Mich.) — Legislation voted out of the House Tax Policy Committee this morning to increase the Homestead Property Tax Credit would provide simple tax relief for both low-income residents and senior citizens, Michigan Catholic Conference stated today in support of House Bill 4871. The bill, sponsored by Representative Martin Howrylak (R-Troy) would amend the Income Tax Act so that the Homestead Property Tax Credit would be adjusted annually based on the rate of inflation.
“This is good tax policy that addresses the economic reality for Michigan’s low-income families and senior citizens,” said Michigan Catholic Conference Vice President for Public Policy and Advocacy Tom Hickson. “Each year people see their day to day costs rise due to inflation; this policy addresses those increases and provides relief for those who experience daily the hardships of a strained family budget. House Bill 4871 is a welcome step toward recognizing the dignity of lower-income residents and seniors.”
According to current law, the Homestead Property Tax Credit allows a tax filer to claim the credit against their income liability, up to $1,200. The amount of the credit is reduced by 10 percent for claimants with total household resources exceeding $41,000, and by an additional 10 percent for each increment of $1,000 in excess of $41,000. Taxpayers with total household resources above $50,000 are not eligible to claim the credit.
The proposed inflationary increase is based on increases in the U.S. Consumer Price Index. If signed into law, House Bill 4871 would take effect for the 2016 tax year. The bill now waits for consideration from the full House of Representatives.
Michigan Catholic Conference is the official public policy voice of the Catholic Church in this state.
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