MI SB0077

Modifies the principal residence property tax exemption process under Michigan's property tax law to determine exemption status based on the date an affidavit is filed rather than the standard tax day.

Allows owners to claim one principal residence exemption by filing an affidavit with the local tax collecting unit, with copies retained by the owner, local unit, and forwarded to the Department of Treasury.

Establishes procedures for denial of exemptions by assessors, the Department of Treasury, or county officials, with appeal rights to the Michigan Tax Tribunal within 35 days of denial notice.

Permits foreclosing lenders (banks, credit unions, land contract vendors) to retain principal residence exemptions for up to 3 tax years on foreclosed properties through 2014, subject to annual verification and payment of taxes that would have been owed.

Creates special exemption calculation rules for bed and breakfast properties that are owner-occupied, based on the proportion of square footage used as principal residence versus commercial lodging space.