Michigan Investors: File your Gast Act

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It was hot news in 1976, but today who knows about Michigan’s Mathieu-Gast Act?

If you’ve ever put a considerable amount of capital into rental maintenance in a single year, this is worth checking out. As long as a simple form is filed by the end of the year in which the work was completed, the typical increase on property taxes through an increase in Assessed Value can be halted until the next time the home is sold.

The Mathieu-Gast Home Improvement Act of 1976 was co-sponsored by state Sen. Harry Gast, R-St. Joseph, and state Rep. Thomas Mathieu around the concept that homeowners and landlords should not be penalized with higher taxes for making home improvements that benefit the community around them.

Certain stipulations do exist; for example, work conducted without necessary permits does not qualify. The Mathieu-Gast Act only applies to “normal maintenance.” According to Michigan.gov Bulletin 7 of 2014, the following repairs are considered “normal maintenance” if they are not part of a structural addition or completion:

(a) Outside painting.
(b) Repairing or replacing siding, roof, porches, steps, sidewalks, or drives.
(c) Repainting, repairing, or replacing existing masonry.
(d) Replacing awnings.
(e) Adding or replacing gutters and downspouts.
(f) Replacing storm windows or doors.
(g) Insulating or weather stripping.
(h) Complete rewiring.
(i) Replacing plumbing and light fixtures.
(j) Replacing a furnace with a new furnace of the same type or replacing an oil or gas burner.
(k) Repairing plaster, inside painting, or other redecorating.
(l) New ceiling, wall, or floor surfacing.
(m) Removing partitions to enlarge rooms.
(n) Replacing an automatic hot water heater.
(o) Replacing dated interior woodwork.

The Michigan.gov form complete with instructions & guidelines for filing are hosted HERE.

– Pete Bruinsma, Broker, Grand River Realty & Life Cycle Property Management

 

sources: Harold-Palladium, John Dobberstein, Jun 26, 1999, RPOAonline.org, GRcity.us