Forms Required by Law
- Property Transfer Affidavit
- Homestead Exemption
- Request to Rescind Homeowner's Principal Residence Exemption
- Conditional Rescission
In March of 1994, Proposal A was approved by the voters. As a result, a taxable value can only be increased by the Consumer Price Index (CPI) or 5% whichever is less, except for new construction or demolition. Effective in 1995, a property's taxable value is capped at this rate until the property is transferred. A Property Transfer Affidavit (PDF) must be filed with the Assessor by the new owner within 45 days of the transfer.
This change in Michigan Tax Law created Homestead (the home you own and occupy) and Non-Homestead (all other property) categories. Homeowners can receive an 18-mil tax reduction by filing a Homeowners Principal Residence Exemption Affidavit (PDF) (formerly known as Homestead Exemption Affidavit) with the Assessor.
You can only file one homestead for any property, and in order to qualify for it, the home must be where you live, the address you file income taxes from, the address you vote from, and your driver's license must show this same address. Otherwise, the State of Michigan Department of Treasury Homestead Division can and will audit to verify that it is a valid homestead exemption being claimed. If their investigation finds otherwise, you will be fined penalties and interest going back to the date the property was no longer your primary residence.
If you move from your residence, the homestead exemption must be removed by filing a Request to Rescind Homeowner's Principal Residence Exemption (PDF) with the Assessor. Failure to file this form will result in penalties and interest going back to the date the property was no longer your primary residence even if you are no longer the owner.
On April 8, 2008, Governor Granholm signed House Bill 4215, enacting Public Act 96 of 2008, which amended Section 211.7cc of the General Property Tax Act of 1893. The amendment enables a person who has established a new principal residence in Michigan to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner's principal residence (if the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose) by submitting a Conditional Rescission of Principal Residence Exemption Form (PDF).
The conditional rescission allows an owner to receive a PRE on his or her property if certain criteria are met. An owner may receive the PRE on the previous principal residence for up to three years if the property is not occupied, is for sale, and listed through the Multi Listing Site (MLS), is not leased or rented, and is not used for any business or commercial purpose. The owner must file this form with the Assessor where the property is located on or before May 1 of the first year the exemption is being claimed. After that, the owner must annually submit this form on or before December 31 to verify to the Assessor that the property for which the PRE is retained is not occupied, is for sale, is not rented or leased, and is not used for any business or commercial purpose. For example, if an owner received a PRE last year by submitting this form, he or she would have to submit another form by December 31 of this year to qualify for a PRE this year.
When submitting this form, it is required that a current tax bill and a PRE Affidavit (PDF) for the current principal residence that you moved to be supplied as well.