Principal Residence Exemption
A Principal Residence Exemption (PRE) exempts a principal residence from the tax levied by a local school district for school operating purposes up to 18 mills. MCL 211.7dd(c) defines a “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. A “principal residence” also includes all of an owner’s unoccupied property classified as residential or timber-cutover that is adjoining or contiguous to the dwelling subject to ad valorem taxes and that is owned and occupied by the owner. Owner is defined in MCL 211.7dd(a). An individual can only have one property with a PRE, even if another property is located in a different State.
Audits of Principal Residence Exemptions (PREs) are continually conducted by Local, County and State officials in an attempt to confirm those benefiting from a PRE continue to qualify.
Please note it is your responsibility to talk with your local assessor if the situation regarding your exemption status changes so they may correctly assess your tax bill.
If your PRE is denied the County Treasurer’s Office is required to bill the denial at the request of Local, County or State officials. In addition to the 18 mills of school operating taxes that you will be billed, you will be charged interest at a rate of 1.25% per month or fraction of a month retroactive to the original bill date, as required by State statute.
You will receive a denial notice prior to the bill generated by the Treasurer’s Office and if you believe this is incorrect, you may request an appeal within 35 days of the denial notice. Information on who to appeal to will be located on the denial paperwork sent to you by the requesting Local, County of State official.
For More Information
For more information on Principle Residence Exemptions, please reference the State of Michigan's PRE website which contains helpful forms, guidelines and instructions.