MI SB0024

Allows first-degree relatives to retain principal residence exemption for up to 2 tax years on property inherited by will or intestate succession if property was exempt as decedent's principal residence in immediately preceding tax year and is not occupied, leased, or used for business, effective December 31, 2015.

Permits foreclosed property owners to claim exemption if land contract vendor, bank, or lending institution retains exemption at same percentage previously held, provided property remains unoccupied (except by original claimant), is for sale, and is not leased or used commercially; requires annual verification and conditional rescission filing.

Extends exemption retention period from 3 to up to 3 tax years for owners who claim exemption on new principal residence while holding property for sale that is not occupied, leased, or used for business.

Establishes exemption for bed and breakfast operations using formula calculating portion of taxable value based on square footage of residential use, common areas, and days property operated as bed and breakfast.

Makes technical changes to clarify principal residence exemption procedures, audit authority, appeal processes, and interest distribution among local units of government and state treasury.