MI SB0831

Principal residence exemption exempts owner-occupied homes from school operating tax levies when affidavit is filed with local tax collecting unit by May 1 (pre-2012) or June 1/November 1 (post-2011).

Exemption status determined on affidavit filing date; married couples limited to one exemption; ineligible if owner claims similar exemption in another state, filed nonresident return, or previously rescinded exemption for same property without ownership transfer.

Property owner may retain exemption for up to 3 years on unsold former principal residence if currently claiming exemption on new principal residence; foreclosed properties may retain exemption if held for sale and not occupied/leased.

Department of Treasury and county auditors conduct exemption audits; assessor/county officials may deny claims with right of appeal to Michigan Tax Tribunal; denied claims result in corrected tax bills with 1.25% monthly interest and penalties computed from original due date.

Interest collected from denied exemptions distributed as percentages to local tax collecting unit, Department of Treasury, and county; owners who fail to rescind exemptions within 90 days face $5-$200 daily penalties.