Michigan homeowners should be aware of a recent law that is in effect for homeowners who have moved and have not been able to sell their home in Michigan. It is an extension of the Homeowners Primary Residence Exemption.
The law is called PA 96 of 2008, and it is a huge tax break for people in Michigan that expands the Principal Residence Exemption on unsold homes. If you live in Michigan, and own a home you are allowed to claim one house for a primary home exemption. The legislature will allow you keep two exemptions if you move from one home in Michigan to another one, and are still trying to sell the previous home. The home must be vacant and for sale.
Some of the other requirements are:
- The home owner must file a Conditional Rescission of Principal Residence Exemption form.
- The appeal will only be for the current year, and you will need to file each year until your home sells. Currently the tax savings on the Principal Residence Exemption is for 3 years.
- If you wish to rescind the Principal Residence Exemption, you must fill out the Request to Rescind Homeowner’s Principle Residence Exemption Affidavit form.
For more information, visit the Michigan Department of Treasury website.