A Taxpayer's Guide

The popup from taxable value to SEV does not apply when eligible farmland is transferred to new owners.  When someone purchases eligible farmland and files an affidavit testifying that the property would remain in agricultural use for at least seven years, the transfer will not trigger the popup.  Transfers of land subject to a conservation easement are also exempted from the popup.

PRINCIPAL RESIDENCE EXEMPTION

A principal residence is exempt form taxes levied by a local school district for operating purposes of up to 18 mills.  a homeowner's principal residence is defined as "the one place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established."  Property owners may claim only one exemption.  However, there are exceptions to this rule.  A husband and wife, filing income tax returns jointly, are generally entitled to no more than one principal residence exemption, although the law allows a temporary, additional exemption for up to 3 years on an unoccupied homestead listed for sale.  Members of the armed forces may retain their exemption if they rent their home while away on active duty.  Homeowners with a principal residence exemption currently residing in a nursing home or assisted living facility may maintain the exemption so long as they continue to own and maintain the property, it is not occupied, and they do not establish a new primary residence.

To be eligible for the homeowner's principal residence property exemption in 2017, a taxpayer must have claimed an exemption by filing an affidavit with the local tax collecting unit on or before June 1, 2017 for the immediately succeeding summer tax levy and November 1, 2017 for the immediately succeeding winter tax levy.  Exemptions filed in prior years are valid until rescinded.  A denial of this exemption may be appealed to the local board of review.  A board of review decision may be appealed to the Michigan Tax Tribunal within 35 days from date of notice.

HOMESTEAD PROPERTY TAX CREDIT

Eligible homeowners or renters who pay more than 3.5 percent of their household income in property taxes, or in rent for renters, can receive a credit or rebate on their state income tax.  See the income tax section later in this booklet for more details.

POVERTY EXEMPTION

A person may be eligible to request a poverty exemption from property taxes if they, at a minimum, own and occupy the poverty as their homestead, demonstrate evidence of ownership and identification, and meet poverty income standards.  The local board of review makes the determination if the exemption should be granted or denied based on the guidelines for both income and asset levels adopted by the local unit of government.  To be eligible for an exemption, a homeowner must apply to the local assessing unit after January 1 but before the day prior to the last day of the board or review.  Poverty exemption denials may be appealed to the local board of review.  Poverty exemption denials may be appealed to the local board or review.  March board of review denials may be appealed to the Michigan Tax Tribunal by the end of July.  July and December board of review appeals must be made to the Michigan Tax Tribunal within 35 days of notice.

DISABLED VETERANS EXEMPTION

Beginning November 12, 2013, property owned and used as a homestead by a disabled and honorably discharged veteran is exempt from Michigan property taxes.  This exemption is also available to an unremarried surviving spouse of a disabled veteran.  An affidavit to qualify for this exemption must be files annually with the local tax unit.  A denial of this exemption may be appeals to the local board of review.  A board of review decision may be appealed to the Michigan Tax Tribunal.