PUBLIC
NOTICE
Michigan Homestead Exemption Audit Public Act 105 of 2003
Persons
who own
and
occupy their home as
their principal residence
may claim an exemption from the 18 mills levied by local school
districts for operating purposes.
Persons
do not qualify for a Michigan homestead exemption
if they claim a homestead or similar exemption in another state, file a Michigan
income tax return
as a non-resident or file an income tax return for another state as a
resident, or file a joint income tax return and claim a homestead
exemption on two or more properties.
Military personnel who file Michigan
income tax returns
as non-residents ay still be eligible for a homestead exemption.
December
31, 2003 and each year thereafter.
The date that property must be owned and occupied in order to
claim a homestead exemption for the 18 mills has changed.
To qualify for a homestead exemption the property must be owner occupied and declared as
homestead by May 1st each year.
The change in the
date may affect persons who build new homes and purchase or transfer
property.
Principal
Residence Exemption.
A new law was introduced to change the name from
Homestead Exemption
to Principal Residence Exemption (PRE).
The change was made to avoid confusion between the homestead
exemption and the homestead property tax credit that can be claimed
against the Michigan
income tax.
When the law was enacted, persons currently claiming a homestead
exemption
were
not required to file a new form.
