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  Proposal unveiled to offer property tax relief, spur housing market
 
Legislation introduced to provide tax credits for decreasing property values

Relief is underway for Michigan residents facing losses in home sales as a result of the state's struggling economy. 

State Reps. Marty Knollenberg, R-Troy, and Tim Melton, D-Pontiac, today introduced a package of legislation to allow home sellers a tax deduction for losses in property values on the homestead property that they sell. 

"Michigan families are struggling in this housing market, and the legislation is a proactive approach to helping taxpayers sell their homes," Knollenberg said. "I'm hopeful for quick action in the House to provide much-needed relief for families at risk of losing their savings."

The bipartisan legislation amends the Income Tax Act to provide for the ability to deduct a loss associated with the sale of a homestead equal to the sum of the purchase price paid, the cost of any improvements to the homestead, and any closing costs incurred during the sale of the homestead less the actual selling price.

"I'm proud to work across the aisle to bring tax relief to homeowners and spur increased sales in a depressed housing market," Melton said.

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