This week the House Tax Policy Committee reported House Bill 4406, a bill that would amend the General Property Tax Act to provide that interest could not be charged when the Hearings Division of the Department of Treasury is considering an appeal for a denial of a principal residence exemption claim.
The Department of Treasury has the authority to conduct audits and deny a principal residence exemption claim if it deems it appropriate after the audit. Currently, during an appeal, interest accrues at a rate of 1.25 percent per month. This bill would prohibit that interest from being charged.
The bill now goes to the full House for approval.
Samantha Harkins is the Director of State Affairs for the Michigan Municipal League. She can be reached at 517-908-0306 or email at [email protected]