Senate Bill 1260 Summary

• Amends the principal residence exemption process under Michigan's General Property Tax Act by clarifying that exemption status is determined on the date an affidavit is filed, rather than on the standard tax day.

• Expands appeal rights by allowing owners to appeal exemption denials to the Michigan Tax Tribunal's residential and small claims division within 35 days, without requiring payment of disputed taxes first.

• Establishes procedures for conditional rescission of exemptions for properties held by foreclosed lenders and owners with multiple principal residences, with specific filing deadlines and annual verification requirements.

• Creates a principal residence property tax exemption audit fund within state treasury, funded by interest collected from exemption denial cases, to be used solely for auditing exemption affidavits.

• Clarifies exemption calculations for bed and breakfast operations and cooperative housing corporations, with prorated exemptions based on residential versus commercial use and tenant occupancy.