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GROSSE POINTE SHORES — Although the income levels of most Grosse Pointe Shores residents put them far from being classified as poor, if any residents were to fall on exceptionally hard times, they might be able to qualify for a poverty exemption from their property taxes.
During a meeting Jan. 21, the Shores City Council unanimously approved a resolution for a poverty exemption. Approval was recommended by administrators and the city’s assessor, WCA Assessing.
“This is something that I understand is required by the Michigan State Tax Commission,” Mayor Ted Kedzierski said.
He said he believed it was something the council had to approve annually.
“That’s correct,” City Manager Stephen Poloni confirmed.
A poverty exemption application enables a homeowner to request property tax relief from the city assessor and Board of Review because the taxes place an excessive hardship on the resident. To be eligible, a resident must first meet federal poverty standards. For the 2024 tax year, the federal poverty guidelines are $15,060 in annual income for a single person, $20,440 annually for two people in the same household and $31,200 for a family of four. Applicants must make less than these amounts to qualify. The exemption, even if granted, is temporary; qualifying property owners would need to apply for it each year.
Applicants not only need to meet the poverty standards for income, but also for assets, which exclude the home for which applicants are seeking tax relief. Assets include vehicles, recreational vehicles such as boats, bank accounts, stocks, bonds, investments, jewelry, second homes, federal non-cash benefits such as Medicare and Medicaid, artwork and antiques.
Maximum assets are set at federal poverty levels, meaning that each person’s total assets, aside from their income and home, cannot be more than $15,060.
“It’s my understanding no one (in Grosse Pointe Shores) has ever qualified because it’s income as well as assets,” Kedzierski said.
Those who qualify for the exemption would have the taxable value of their home reduced by 50% for that year.
Because of changes made by the state Legislature in December 2020, the Board of Review is no longer be able to deviate from state guidelines because of special circumstances, such as medical expenses.
The council needed to approve the guidelines in advance of the city’s Board of Review meetings. It’s during Board of Review meetings that residents can contest their property tax assessment or seek a poverty exemption.
The Board of Review was slated, at press time, to meet March 10 and 17, although times hadn’t been announced at press time. For more information, contact Shores City Hall at (313) 881-6565.
For the poverty tax exemption guidelines and form, visit the city’s website at gpshoresmi.gov.
