MI HB5983

Changes the maximum period for conditional principal residence exemptions from 3 tax years to 5 tax years for previously-exempt property that is not occupied, for sale, and not leased.

Allows property owners to retain exemptions on former principal residences for up to 5 years (instead of 3) if they claim an exemption on a current principal residence and meet specified conditions including non-occupancy and non-commercial use.

Requires annual verification by December 31 that conditionally-exempt property remains unoccupied, for sale, and not leased; failure to verify results in exemption denial.

If conditionally-exempt property is leased, the conditional rescission is retroactively denied effective December 31 of the preceding year.

Maintains existing provisions for exemption claims, denials, appeals to the Michigan Tax Tribunal, and interest/penalty distributions to local units, the department of treasury, and counties.