TOWNSHIP OF HAMBURG 
			 	 LIVINGSTON COUNTY

			POVERTY EXEMPTION POLICY/ PROCEDURES 
			 	 SECTION 211.7U MCL

Pursuant to Section 211.7u MCL the Supervisor and or the Board of Review of the 
Township of Hamburg, Livingston County established the following procedures and 
criteria for the uniform application and determination of poverty exemptions:

	1)	Any property owner/tax payer may apply for a poverty exemption 
		allowed under Section 211.7u MCL. Application may be by:

		a) 	Formal application to the Assessing Department or 
		b) 	Formal petition to the Board of Review during the March, 
			July, or December session.  

	2) 	The burden of proof of poverty rests with the applicant. Said 
		applicant may supply one of the following as evidence of proof:
		
		a) 	Completed, notarized application for exemption and 
		b) 	Prior year Michigan 1040 Income Tax return with MI-1 040 CR 
			or
		C)	Prior year Federal 1040 Income Tax return with schedules.

	3)	The final determination of the poverty exemption shall be based upon 
		two (2) factors: 
		
		a) 	Adjusted income of the applicant and 
		b) 	Size of the family unit.

	4)	The applicant's reported income shall be reviewed by the assessing 
		officer and the Board of Review and adjustments may be in the 
		following manner:
		
		a)	Gross income from employment shall be adjusted with a factor
			of .72. This allows 28% of the employment income to meet any
			federal or state withholdings.
		b)	If the applicant is 65 years or older all other gross income 
			shall be adjusted with a factor of .85. This allows 15% to
			meet typical medical needs.
		c)	A 100% allowance/adjustment for medical insurance premiums 
			paid by the applicant as reported on the MI-1040 CR. 
		d)	The assessing officer and/or board of review may also make 
			an adjustment to the applicant's gross income for atypical
			expenses, i.e. excessive medical expenses. 
	
	5) 	Determination of the size of the family unit shall be reflective of 
		Michigan income tax procedures.
		
		a)	Each applicant shall be entitled to one "allowable 
			exemption" for each verified member of the family unit. 
		b)	An additional 1/2 "allowable exemption" may be granted for 
			the following: 

			1) 	Applicant is 65 years of age or older.
			2)  	Spouse of applicant is 65 years of age or older.
			3) 	Applicant is a paraplegic or quadriplegic.

	6)	The adjusted income level for each family unit shall be set by the 
		assessing officer and the board of review. The assessing officer and 
		board of review may use any federal or state standards for "poverty"
		to assist them in this determination. 

	7)	The granting of a poverty exemption may be "partial" or in total, 
		but shall require concurrence of opinion of the assessing officer 
		and the board of review. 

	8)	If the Exemption is partial the "net" property tax liability shall 
		not exceed 3.5% of the total gross income for those individuals of
		an age 65 or greater.