Principal Residence Exemption

Instructions for Form 2368

Principal Residence Exemption (PRE) Affidavit

 

If you own and occupy your principal residence, it may be exempt from a portion of your local school operating taxes. To claim an exemption, complete this Affidavit and file it with your township or city by June 1 or November 1 of the year of the claim. Failure to complete an Affidavit (including the refusal to provide a social security number) may be a cause to deny the claim for an exemption.

 

A valid affidavit filed in Royalton Township by June 1* allows an owner to receive an exemption on the current year summer and winter tax levy and subsequent levies so long as it remains the owner’s principal residence. A valid affidavit filed by November 1* allows an owner to receive an exemption

on the current year winter tax levy and subsequent levies so long as it remains the owner’s principal residence. Principal residence means the dwelling that you occupy as your permanent home and any unoccupied adjoining or contiguous properties that are classified residential

or timber-cutover. Do not submit this form if the property is not occupied by the owner as his or her principal residence. *School taxes are collected on the summer bill in Royalton Township therefore the November 1 deadline is no applicable.

 

Owners are defined in MCL 211.7dd(a). Only the owner’s listed in MCL211.7dd(a) are eligible to claim the exemption. Renters can

not file this form.

 

Occupying means this is your principal residence, the place you intend to return to whenever you go away. It should be the address that appears on your driver's license or voter registration card. Vacation homes and income property that you do not occupy as your principal residence may not be claimed. You may have only one principal residence at a time, however, you can file a Conditional Rescission of Principal Residence Exemption (PRE) (Form 4640) on unsold property that is your previous principal residence under the following conditions: it is for sale, is not occupied, is not leased, and is not used for any business or commercial purpose.

 

RESCINDING YOUR EXEMPTION

 

Within 90 days of when you no longer own or occupy the property as a principal residence, you must complete and file a Request to Rescind Principal Residence Exemption (PRE) (Form 2602) or file Form 4640, as noted above, with your township or city assessor.  Failure to do so may subject you to additional tax plus penalties and interest as determined under the General Property Tax Act.

 

INTEREST AND PENALTY

 

If it is determined that you claimed property that is not your principal residence, you may be subject to the additional tax plus penalty and interest as determined under the General Property Tax Act.

 

PART 1: PROPERTY INFORMATION

 

Submit a separate affidavit for each property tax identification number being claimed.

It is important that your property tax identification number is entered accurately. This ensures that your property is identified properly and that your township or city can accurately adjust your property taxes. You can find this number on your tax bill and on your property tax assessment notice. If you cannot find this number, call your township or city assessor.

 

NOTE: Do not include information for a co-owner who does not occupy the property as a principal residence.

 

The request for the Social Security number is authorized under Section 42 USC 405 (c) (2) (C) (i). It is used by the Department of Treasury to verify tax exemption claims and to deter fraudulent filings. Any use of the number by closing agents or local units of government is illegal and subject to penalty.

 

Line 12: If you own and occupy the entire property as a principal residence, you may claim a 100 percent exemption. If you own and live in a multi-unit or multi-purpose property (e.g., a duplex or apartment building, or a storefront with an upstairs flat), you can only claim a partial exemption based on that portion that you use as a principal residence. Calculate your portion by dividing the floor area of your principal residence by the floor area of the entire building. A percentage must be provided.

 

If the parcel of property you are claiming has more than one home on it, you must determine the percentage that you own and occupy as your principal residence. A second residence on the same property (e.g., a mobile home or second house) is not part of your principal residence, even if it is not rented to another person. Your local assessor can tell you the assessed value of each residence to help you determine the percentage that is your principal residence.

If you rent part of your home to another person, you may have to prorate your exemption. If your home is a single-family dwelling and less than 50 percent of your home is rented to others who use it as a residence, you may claim a 100 percent exemption. If 50 percent or more is rented to others who use it as a residence or if part of the home was converted to an apartment with a separate entrance, you must calculate the percentage that is your principal residence by dividing the floor area of your principal residence by the floor area of the entire building.

 

PART 2: CERTIFICATION

 

Sign and date the form. Enter your mailing address if it is different from the address under Part 1.

 

MAILING INFORMATION

 

Mail your completed form to the township or city assessor where the property is located. This address may be on your most recent tax bill or assessment notice. DO NOT send this form directly to the Department of Treasury.

 

If you have any questions, visit www.michigan.gov/PRE or call (517) 373-1950.




More Information Regarding the Principal Residence Exemption


 



 

 



Learn more about the Homeowner's Principal Residence Exemption

 

State of Michigan guidelines for the Principal Residence Exemption

FAQ’s concerning the Homeowner’s Principal Residence Exemption.

FAQ’s (PDF) concerning the Conditional Principal Residence Exemption.

To locate any of the forms discussed in this section, please visit our FORMS page.

 


Contact


About Call: 269-429-2501 Fax: 269-429-8373 Site Map