The House Committee on Finance on Oct. 21 adopted the H‑2 substitute to House Bill 4041, which would permit a principal residence granted a property tax poverty exemption to remain exempt for up to three years without an annual reapplication under certain conditions, sponsor Representative Tyrone Carter said. The substitute passed on a recorded vote, 14‑0.

Representative Carter told the committee that the proposal is intended to reduce annual paperwork burdens for long‑term recipients whose circumstances are unlikely to change. "This bill simply simplifies the process for them and for local assessing units throughout the state," Detroit city assessor Alvin Horn told the committee, identifying himself as deputy CFO and assessor for the City of Detroit.

Under the substitute, a property owner who already qualifies for the poverty exemption could remain on the exemption roll for up to three years if there is no change in ownership or occupancy and the household's income remains limited to sources such as Social Security, Social Security disability, or retirement benefits. The substitute requires an annual certification by the taxpayer that their circumstances have not changed.

Committee members clarified scope. Representative Martin asked whether the substitute is modeled on the permanent total disabled veterans exemption; the sponsor said it is. The record also shows the governor's COVID‑era executive orders that temporarily extended exemptions informed the proposal. Representative Alexander asked whether the substitute would relieve recipients of special assessments or fees; Alvin Horn answered, "No, sir. This is for taxes and taxes alone. It does not cover any fees or any other" assessments.

The committee recorded the H‑2 substitute as adopted by voice and roll call; the clerk reported "you have 14 yay, 0 nay, 0 pass." The committee also registered neutral or informational testimony from a Department of Treasury representative and the Michigan Municipal League; the bill then moved forward under the adopted substitute.