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Commission approves hardship property tax reduction program with tiered relief
Summary
Commissioners approved a hardship property tax reduction program applying a 50% reduction for applicants at or below the federal poverty level and a 25% reduction for those up to 150% of poverty; staff noted state rules limit discretion and provided application contact information.
The City Commission approved a hardship property tax reduction/exemption program (Resolution 9) on June 15 that establishes tiered relief for property owners who meet income and asset limits.
Under the adopted structure, applicants at or below the federal poverty guideline qualify for a 50% reduction; applicants up to 150% of the federal poverty guideline qualify for a 25% reduction. City staff and the assessor explained that state law constrains the board’s discretionary ability to vary the income calculation: eligibility must generally rely on the Michigan homestead credit figures and certain discretionary considerations (for example, one-time medical expenses) cannot be factored into the income test.
Staff estimated the program has been underutilized in prior years (roughly 25–35 applicants annually), which limited the city’s historic cost (staff noted an earlier annual cost near $5,000). Commissioners asked about asset calculations and whether ordinary household property or vehicle equity would be excluded; staff recommended an asset threshold (for example $25,000) but said the board may set a higher limit if desired. Staff gave contact information for assistance (area code 989-894-8123 or city assessor at baycitymi.gov) and said staff can help applicants apply and identify related homestead credits.
After discussion, the commission voted to adopt the resolution establishing the program; the clerk recorded nine yes votes.
