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Homeowner's Principal Residence Exemption
(formerly known as Homestead Exemption)

Principal Resident Exemption Forms

 

What Your Property's Exemption Status Means for You

Since 1994, every property in the State was designated as either a homestead or non-homestead property.   This designation determines how much you owe in taxes.

This exemption is now called the "Principal Residence Exemption" so as not to be confused with the Michigan Homestead Credit that is filed with your income tax return.

  • A Principal Residence property is property that is owner occupied.
  • Properties not eligible for the Principal Residence Exemption include: cottages, second homes or rental properties.

 

Designate Your Property Exemption Status

To claim a residence home as your principal residence, you must:

  • Own and occupy the home on or before May 1st prior to the next City & School tax billing
  • Complete and file the Principal Resident Exemption Form
  • Rescind all other all other principal residence exemptions claimed in your name

Exemption Denials

If you receive notification from the Michigan Department of Treasury regarding your homestead, be sure to follow their instructions for following up on the information.

Never ignore a tax-related notice you receive and don't understand - call the Clerk/Treasurer's office and we will be happy to help you! Ignoring these notices has resulted in higher property taxes and higher mortgage payments (if taxes are paid through a mortgage company).

 Estimate Your Taxes

Your taxes are calculated by multiplying the tax rate by each thousand of taxable value.  Following is an example of taxes due for a home with a taxable of $50,000 based on the 2006 total tax rate in the Berkley School District.

 

Principal Residence

Second Home or Rental

Taxable Value

50,000

50,000

Tax Rate

33.7031

51.7031

Tax Due

$1,685.16

$2,585.16

 

Or check out State of Michigan Department of Treasury web site and use their easy and convenient tax estimator program.