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.
|