Treasury provides special benefits to military members, vets

With Veterans Day on Saturday, Nov. 11, the Michigan Department of Treasury (Treasury) reminds current and former military members about the special benefits they may be entitled to receive.

“Our service men and women make great sacrifices to keep us safe,” State Treasurer Nick Khouri said. “Treasury works closely with our military members and veterans to ensure they receive the tax relief and other special benefits provided under state law.”

Current and former military members may be eligible to receive:

• Military Pay Tax Exemption. Military pay is exempt from Michigan tax, including military retirement benefits and exit and separation pay.

• Children of Veterans Tuition Grant. This program provides undergraduate tuition assistance to the children of Michigan veterans who were totally and permanently disabled, missing in action or died while serving. Students may receive scholarship assistance for up to four academic years for a total of up to $11,200.

• Disabled Veterans Property Tax Exemption. A property tax exemption for real property used and owned as a homestead as outlined in state law.

• Principal Residence Exemption (PRE) for Active Duty Military Personnel. Property owners can retain a PRE while on active duty if their property is rented or leased.

• Property Tax Relief during Active Military Service. Property owned by a serviceperson cannot be sold to pay delinquent property taxes during a tour of active duty.

• Summer Property Tax Deferment. A serviceperson, veteran or widow or widower whose income outside of military compensation is no more than $7,500 per year may be eligible for a summer property tax deferment.

“Michigan is home to 608,000 military veterans who served and sacrificed time away from their loved ones to ensure our freedoms and way of life,” said Michigan Veterans Affairs Director James Robert Redford. “While we cannot ever fully repay that debt of gratitude, we do strive to give back to our veterans by helping connect them to benefits and services that they have earned and deserve. MVAA appreciates Treasury’s continued support in that effort by offering numerous tax incentives to ease the tax burden on our veterans and their families.”

To learn more about tax relief and other benefits for current and past military members, go to www.michigan.gov/taxes.