In 1994, Michigan voters approved Proposal A which limited or “capped” the annual increase in the taxable value of a parcel of real estate. Specifically, Const. 1963, Art. IX, § 3 provides, in part: “For taxes levied in 1995 and each year thereafter, the...
Michigan Taxation
President Biden Forgives Up To $20,000 In Student Loans For Low- To Middle-Income Americans: Is It Considered Taxable Income For Federal Tax Or Michigan Tax Purposes?
On August 24, 2022, President Joe Biden issued an executive order to help provide relief to nearly 95% of U.S. residents who are burdened by student loan debt. The most significant announcement was that the U.S. Department of Education will provide up to...
What Tax Advantages Are Available To Foster Parents In Michigan?
Foster parents perform a critical function in society to help children removed from their biological homes to have as normal and stable of an upbringing as possible. These foster children may be placed temporarily until conditions improve at their original...
How Can The Original Property Owner Recover Surplus Proceeds Following Tax Foreclosure In Michigan?
In Rafaeli, LLC v. Oakland Cnty, 505 Mich 429; 952 NW2d 434 (2020), the Michigan Supreme Court ruled that former owners of real estate that were foreclosed upon by local government for unpaid property taxes have a vested right in the surplus proceeds and that...
What Is The State Income Tax Rate In Michigan?
Michigan, like a majority of states, assesses an income tax like the federal government does. Unlike the Internal Revenue Code which provides a progressive tax rate based on income, Michigan assesses a flat income tax rate no matter how wealthy the taxpayer...
Michigan Repeals Sales And Use Tax On Feminine Hygiene Products
On November 4, 2021, Governor Gretchen Whitmer signed Public Act 108 of 2021 into law which exempted feminine hygiene products from Michigan’s 6% sales tax. The following day, on November 5, 2021, the governor signed Public Act 109 of 2021 into law which...
Are You Eligible For Michigan’s Earned Income Tax Credit?
Most taxpayers are aware that the earned income credit (EIC) is one of the most valuable tax credits that can be claimed on their federal tax return. For residents in the State of Michigan, did you know that there is an EIC available as a credit against your...
Are Houses Of Worship And Parsonages Exempt From Taxation In Michigan?
Generally speaking, “[a]ll land within this state, all buildings and fixtures on the land, and all appurtenances to the land” are subject to ad valorem taxes based on its assessed value under Michigan’s General Property Tax Act, “except as expressly exempted by...
State Of Michigan Extends Deadlines For Some Tax Returns And Payments To May 17, 2021 For 2020 Tax Year
On March 17, 2021, the Internal Revenue Service issued Notice 2021-59 that provided an automatic extension of the due date for certain federal income tax returns and payments from April 15, 2021 to May 17, 2021. This was in response to the ongoing COVID-19...
What Happens If Property Taxes Are Delinquent In Michigan?
Property taxes are an important source of revenue for municipalities in the State of Michigan. Those tax dollars funds school districts, police departments, fire and rescue services and other local services. When these property taxes go unpaid, the countdown...
