Michigan Senate Moves Bill to Allow for Principal Residence Exemptions (PRE) Until June 30th
Over the past several weeks Michigan Realtors® has worked with the Legislature and the Department of Treasury to allow additional time for buyers to file their Principal Residence Exemption (PRE) for 2020. With the traditional deadline expiring this past Monday, June 1st, Michigan Realtors® is urging expedited movement on this important legislation to provide buyers with property tax relief and the greatest amount of certainty during the month of June.
Today, the Michigan Senate passed Senate Bill 940, sponsored by Senator Roger Victory (R- Hudsonville) extending the time frame to file a 2020 PRE until June 30th. With the overwhelming support of the Senate and work with the Department of Treasury, it is anticipated that the bill will see continued movement in the Michigan House next week.
While there are no certainties, Realtors® should advise their buyer closing in the month of June to file their PRE before June 30th in order to receive the PRE rate for their July property tax bill.
What is a Principal Residence Exemption (PRE)?
A PRE exempts a principal residence from the tax levied by a local school district for school operating purposes up to 18 mills. To qualify for a PRE on a parcel of land, a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.
What this means to a homebuyer: If you close on a property in the month of June and file for the Michigan Principal Residence Exemption by June 30th, your summer tax bill will be lower due to the PRE.
Have questions about this subject, or any other real estate related topics, I’m always available to talk with you!