MI HB5017

New construction on development property is exempt from school operating taxes for 3 years or until no longer on development property, whichever occurs first, for taxes levied after November 1, 2012 through December 30, 2013.

Development property with new construction is exempt from local school district operating taxes to the same extent as principal residences for 2 years or until property is no longer development property, effective November 1, 2013 through December 30, 2015.

Eligible development property (unoccupied new residential structures built after December 30, 2012 available for sale, plus the land) is exempt from school operating taxes for 3 years or until no longer eligible development property, effective December 31, 2013.

Property owners must file affidavits with local tax collecting units by June 1 or November 1 to claim exemptions and must rescind exemptions within 90 days of property no longer qualifying, with penalties of $5 per day (up to $200) for failure to rescind.

Assessors may deny or modify improperly granted exemptions with owner notification and board of review appeal rights; owners may voluntarily withdraw exemptions with corrected tax bills issued and penalty waivers available if paid within 30 days.