The State Tax Commission at their meeting on February 9, 2021 approved Bulletin 3 of 2021 regarding poverty exemptions under MCL 211.7u. This Bulletin addresses the changes to the law by Public Act 253 of 2020.
It is important that assessors, local unit officials, and taxpayers understand the requirements for claiming the poverty exemption under the changes to the law. A taxpayer must file the following with the local unit of government to apply for the poverty exemption for 2021:
- Form 5737 Application for MCL 211.7u Poverty Exemption
- Form 5739 Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty. All required additional documentation (such as federal/state income tax returns) Taxpayers not required to file federal/state income tax returns would instead submit
- Form 4988 Poverty Exemption Affidavit
The State Tax Commission is providing the attached MCL 211.7u Poverty Exemption Taxpayer Fact Sheet to assist with explaining the filing requirements to taxpayers.
Lastly, local units are reminded that, by resolution, they can carry a poverty exemption forward that was granted in 2019 or 2020 for the 2021 tax year, without an application or protest to the Board of Review. Local units must adopt a resolution by February 15, 2021 to carry the exemption forward for the 2021 tax year. (See MCL211.7u(8))
Bulletin 3 of 2021 and the Taxpayer Fact Sheet are attached and will be made available on the State Tax Commission’s website at https://www.michigan.gov/statetaxcommission. Also attached are Forms 5737, 5739 and 4988.
Form 4988 Poverty Exemption Affidavit.pdf
Form 5739 Affirmation of Ownership and Occupancy.pdf
Form 5737 Application for MCL 211.7u Poverty Exemption.pdf
Bulletin 3 of 2021 - Poverty Exemption.pdf
Poverty Exemption Taxpayer Fact Sheet 2021.pdf