Michigan Law defines principal residence as the one place where a person has his or her true, fixed, and permanent home to which, whenever absent he or she intends to return and that shall continue as a principal residence until another principal residence is established. In order to verify a persons claim that a particular property is a principal residence, Treasury will accept various documents that, taken together, establish that the person or persons filing the claim occupy the property as a principal residence. Examples include driver’s license, voter registration card, cancelled checks listing the property address, statements such as medical, bank or charge accounts, income tax records indicating the mailing address and insurance policies. No one of these factors taken alone is controlling over any other factor. Documentation needs to verify occupancy between the periods of January 1 to May 1 of each year.
If a residence no longer qualifies for the Homeowner’s Principal Residence Exemption, you must file a Request to Rescind. However, recent legislation enables a person who has established a new Michigan principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner’s principal residence if certain criteria are met.
An owner may receive the PRE on the previous principal residence for up to three years if that property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. The initial year filing deadline is May 1. Successive years claims must be received annually on or before December 31.
Multi-purpose property is not eligible for a full exemption. The Homeowner’s Principal Residence Exemption only applies to property that you own and occupy as your principal residence. If you operate a business in your home, you are not eligible for a 100% exemption. If you write off portions of your home for income tax purposes, you are not eligible for a 100% exemption. If you own and/or operate a Bed and Breakfast, you are not eligible for a 100% exemption. If you have questions about calculating your reduced exemption percentage, please contact the Assessing Department.
NOTICE: In addition, some property if not eligible for a principal residence exemption may be eligible for an agricultural or forestry exemption, contact the Assessor for more information on these exemptions if your property does not receive the residence exemption and is actively farmed or forested, to see if your property is eligible.
ALL FORMS DISCUSSED UNDER “PROPOSAL A” ARE AVAILABLE
BY CONTACTING THE ASSESSING DEPARTMENT AT
231-946-2249 or firstname.lastname@example.org