MI HB4134

New construction on development property is exempt from school operating taxes (MCL 380.1211) for 3 years or until it is no longer on development property, whichever occurs first, for taxes levied after November 1, 2012

Property owners must file an affidavit with the local tax collecting unit by June 1 (for summer taxes) or November 1 (for winter taxes) to claim the exemption, using a form prescribed by the department of treasury

Owners must rescind the exemption within 90 days after new construction no longer qualifies as development property by filing a rescission form; failure to file incurs a $5.00 per day penalty up to $200.00 maximum

Development property is defined as unoccupied, never-occupied residential dwellings, condominiums, or structures that are available for sale, not leased, and not used for business or commercial purposes

Assessors may deny or modify exemptions if they determine new construction is not on development property; owners may appeal to the board of review and Michigan tax tribunal, and may request exemptions be withdrawn to avoid penalties if erroneously granted