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Principal Residence Exemption

 Principal Residence Exemption – Michigan State Tax Commission Bulletin 12 of 2022

Principal Residence Exemption Forms

Principal Residence Exemption (PRE) Affidavit Form 2368
Request to Rescind Principal Residence Exemption (PRE) Form 2602
Principal Residence Exemption (PRE) Active Duty Military Affidavit Form 4660
Conditional Rescission of Principal Residence Exemption Form 4640
Request for Principal Residence Exemption – Qualified Error Form 5101
Principal Residence Exemption Affidavit for Similar Exemptions in Other States Form 5565

Guidelines and FAQ

Michigan Department of Treasury Principal Residence Exemption Guidelines
Previous Year PRE Guidelines (Applying for PRE for Previous Years)
Conditional Rescission of Principal Residence Exemption (PRE) Frequently Asked Questions

What is Principal Residence Exemption?

From the Michigan Department of Treasury, “Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims (formerly known as the Homestead Exemption). 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.

To claim a PRE, the property owner must submit a Principal Residence Exemption (PRE) Affidavit, Form 2368, to the assessor for the city or township in which the property is located. The deadline for a property owner to file Form 2368 for taxes levied after December 31, 2011, has changed from May 1 to June 1, and a second deadline of November 1 was added. The exemption information is then posted to the local property tax roll. Normally, when you purchase a home, Form 2368 and other relevant principal residence exemption forms are provided by the closing agents. There are many variables in determining eligibility for the exemption. The Principal Residence Exemption (PRE) Guidelines book provides answers to a number of frequently asked questions.

When a person no longer owns or occupies the property as a principal residence, he or she must file a Request to Rescind Homeowner’s Principal Residence Exemption (PRE), Form 2602, with the assessor for the city or township in which the property is located to remove the PRE. The PRE will be removed from the local property tax roll by the assessor beginning with the next tax year. Failure to rescind a PRE may result in additional taxes, interest and penalties. Under certain circumstances a person may qualify for a conditional rescission which allows an owner to receive a PRE on his or her current Michigan property and on previously exempted property simultaneously for up to three years. To initially qualify for a conditional rescission, the owner must submit an owner’s Conditional Rescission of Principal Residence Exemption (PRE), Form 4640, to the assessor for the city or township in which the property is located on or before June 1 or November 1 of the first year of the claim.”