Big Changes for the Principal Residence Exemption
Governor Snyder signed Public Act 115 which made two significant changes to the Principal Residence Exemption from the School Operating millage.
1 – It establishes two deadlines by which a Principal Residence Exemption may be filed.
2 – It creates a new conditional rescission for “foreclosure entities”.
Affidavit Deadline – The deadline to file a Principal Residence Exemption (PRE) affidavit changed from May 1st to June 1st and a second deadline of November 1st was added. As a result, property owners that occupy a property as their principal residence and submit the PRE affidavit by the June 1st deadline may qualify for a PRE beginning in the year that the form is submitted.
If a property owner occupies a property at any time from June 2nd to November 1st they can submit the PRE affidavit on or before the November 1st deadline and may qualify for the winter tax levy. This dual deadline will continue throughout future years but is not retroactive for previous years.
If the property is owned and occupied between May 2nd and November 1st, Public Act 115 does not allow the owner to go to the Board of Review if the PRE Affidavit is not timely filed. So, if you miss the deadline, your PRE exemption would not start until the following year.
The Principal Residence Exemption is available here and on our forms page. Also, please be aware that if you have moved from your principal residence and it is on the market, you can continue to get the PRE Exemption for up to three years by filing a Conditional Rescind form. You need to file this form each year you wish to claim the exemption.