New Michigan Principal Residence Exemption Law Passed
Yesterday, Governor Snyder signed into law the revised Principal Residence Exemption statute. The revised statute changes the filing deadline for the Principal Residence Exemption Affidavit from May 1 to June 1 and adds a new second filing date of November 1.
The law will also allow lenders who foreclose on property to retain the principal residence exemption on the property, although a new tax is imposed on the lenders to offset the exemption. However, retaining the principal residence exemption will help subsequent owner-occupied buyers to immediately pay the lower homestead rate.
For taxes levied after December 31, 2011, the filing deadline will be June 1 for the next summer tax levy and all subsequent tax levies, or November 1 for the next winter tax levy and all subsequent tax levies.
A principal residence is exempt from the tax levied by a local school district for school operating purposes, which typically means that the property is taxed at the rate of six mills, rather than 24. To claim the exemption, the property owner must file an affidavit with the local tax collecting unit.
A copy of the full Bill can be found at:
Principal Residence Exemption Bill
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