2025 Poverty Guidelines and Asset Level Test- BERLIN TWP resolution 3-4-25
BERLIN TOWNSHIP
GUIDELINES AND ASSET LEVEL FOR POVERTY EXEMPTION
As provided by resolution# March 4, 2025 by Berlin Township Board
WHEREAS, the adoption of guidelines and an asset level test for poverty exemptions is required of the Township Board;
and
WHEREAS, The Board of Review may grant property tax exemptions (in whole and in part) to the principal residence of
persons who, in the judgement the Board of Review, are by reason of poverty unable to contribute toward the public
charges. MCL 211.7u(1). AND
WHEREAS, pursuant to PA 390 of 1994 (MCL 211.7u), the Township Board of BERLIN, Ionia County adopts the following
guidelines and asset level test for the Board of Review to follow.
The Board of Review must grant a full exemption equal to a 100% reduction in taxable value OR a partial exemption equal
to a 25% or 50% or 75% reduction in taxable value OR any other percentage reduction in taxable value approved by the
STC- if the applicant meets the eligibility requirements as outlined. Guidance for a partial exemption is given in the
attached document provided by the State Tax Commission titled: STATE TAX COMMISSION POLICY REGARDING
REQUESTS FOR PERCENTAGE REDUCTIONS IN TAXABLE VALUE FOR POVERTY EXEMPTIONS UNDER MCL 211.7u
Guidelines & Asset Level for Poverty Exemption
A property owner shall meet the following eligibility requirements on an annual basis for the exemption to be granted
in full or in part by the Board of Review:
1) The applicant must own and occupy the subject property as their “PRINCIPAL RESIDENCE” as that term is defined in
MCL 211.7dd.
2) Produce a valid driver license or other form of identification – proving residence.
3) Produce a deed, land contract, or other evidence of ownership of the property for which an exemption is requested
3) Fill out completely and file the following affidavits and provide all additional required documentation with the
township assessor’s office each year after January 1st but before the week prior to the last day of the December
Board of Review.
i)
File a Poverty Exemption Application Form 5737 Application for MCL 211.7u Poverty Exemption
Form 5739 Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty
ii)
iii) Provide Federal/State Income Tax returns for applicant and all persons residing in the principal residence-
Provide copies of federal and state income tax returns for applicant AND all persons residing in the principal
residence including any property tax credit returns (homestead property tax credits will not be counted as
income). These income tax returns shall include those filed in the current year or in the immediately preceding
year.
And/or
iv) Treasury form 4988 shall be filed with the Poverty Application for all persons residing in the residence who
were not required to file federal or state income tax returns in the current year or in the immediately
preceding year.
4) Annual allowable income includes income for all persons residing in the principal residence must not exceed the
limits set forth in the guidelines adopted by the local assessing unit.
• Allowable income: To meet allowable income eligibility, the applicant’s total household gross income
(Gross income is the total amount of money earned before taxes and other deductions) must not exceed
the Federal Poverty Guidelines published in the prior calendar year by the U.S. Department of Health
and Human Services as provided by the State Tax Commission. (example 2025 application uses 2024
Federal Poverty Guidelines figures)
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5) Must not exceed the level of household assets known as’ The Asset Level Test’ determined by the BERLIN Township
Board
The Asset Level Test is determined by the BERLIN Township Board to be:
It has been determined by the township Board via Resolution # 2/1/2022 that the ALLOWABLE ASSETS AND THE
MAXIMUM ASSET LEVEL FOR APPLICANTS AND HOUSEHOLD MEMBERS are as follows:
• • Household assets, except the homestead being claimed, essential household goods and the first
$20000 of the market value of a motor vehicle, should not exceed:
• (a) $10000 for the claimant.
• (b) $12800 for the household.
Assets include, but are not limited to, real estate other than the principal residence, motor vehicles, recreational
vehicles and equipment, certificates of deposit, savings accounts, checking accounts, stocks, bonds, and retirement
funds. Assets do not include essential household goods such as furniture, appliances, dishes and clothing and the first
$20000 of one motor vehicle.
The filing of the Poverty Exemption Application Form 5737 Application for MCL 211.7u Poverty Exemption constitutes
an appearance before the Board of Review for the purpose of preserving the right of appeal to the Michigan Tax Tribunal.
The application and all required documents shall be filed annually with the Assessor after January 1, but before 1 week
prior to the last day of the December Board of Review to allow processing time.
Address of the Assessor:
BERLIN TOWNSHIP BOARD OF REVIEW
c/o HEATHER HOFFMAN, ASSESSOR
PO BOX 175
LOWELL, MI 49331
Failure to file all required documents will result in an incomplete application- attempts to contact applicant for correction,
will be taken.