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Bay City approves revised hardship property tax exemption with tiered reductions
Summary
On June 15 the commission approved a revised hardship property tax reduction/exemption program that establishes tiered reductions tied to federal poverty thresholds (a 50% reduction for households at or below 100% of the federal poverty level and a 25% reduction for households up to 150% of the federal poverty level was discussed) and sets an asset threshold framework; the measure passed 9‑0.
The Bay City Commission approved a revised hardship property tax reduction/exemption program on June 15, expanding eligibility rules and setting structured reductions tied to federal poverty guidelines.
Wade, the city assessor, briefed the commission on the program’s mechanics and legal constraints. He told commissioners the city must use income information that aligns with the Michigan homestead credit rules and cannot apply discretionary adjustments to countable income. Wade said the proposed structure provides a 50% reduction for applicants at or below 100% of the federal poverty level and a 25% reduction for those up to 150% of the federal poverty level; the transcript records his explanation that "if the person earns 150% above the federal poverty level... they receive a 25% reduction" and that those at or below the poverty threshold "will receive a 50% reduction." He also said the city has discretion to set asset limits and suggested $25,000 as a workable starting point, but that the commission could raise that threshold.
Commissioners asked clarifying questions about whether principal residence equity and vehicle equity would be counted; Wade said the city would generally not have staff capacity to exhaustively review vehicle equity and that the principal residence and ordinary household personal property were treated as exempt in the draft policy, with liquid assets and large investments the primary focus of asset tests. He provided application contact information for residents seeking the homestead credit and related assistance (area code 989‑894‑8123; city assessor@baycitymi.gov).
After discussion the commission voted 9‑0 to approve the resolution expanding the hardship exemption structure. Commissioners said they expect outreach to raise awareness of a program that has been underutilized in past years.
