HB 6157 Summary

• Allows principal residences to be exempt from local school district property taxes when owners file an affidavit claiming exemption on or before May 1 each year.

• Permits owners whose property transfers to a natural or adopted child through deed with consideration under $100, survivorship, will, intestate succession, or revocable trust to retain the exemption for up to 3 tax years if the property remains unsold, unoccupied, and unleased.

• Establishes procedures for assessors, the Department of Treasury, and county treasurers to deny exemption claims and assess back taxes with 1.25% monthly interest if property is not actually a principal residence.

• Allows owners to appeal exemption denials to the Michigan Tax Tribunal's residential and small claims division within 35 days, with no requirement to pay disputed taxes before appealing.

• Allocates collected interest from denied exemptions among local tax collecting units, the Department of Treasury, and counties, and creates a principal residence property tax exemption audit fund for exemption auditing purposes.