The Principal Residence Exemption (PRE) (formerly known as the homestead exemption) exempts a residence from the tax levied by a local school district for school operating purposes. To qualify for the PRE you must own and occupy the home as your principal residence on or before November 1st (other municipalities may utilize a June 1st deadline) and file the Principal Residence Exemption (PRE) Affidavit (Form 2368) with the Township's Assessor. The exemption continues until the use of the home as your principal residence changes. When the change occurs, you must file a Request to Rescind Principal Residence Exemption (Form 2602) with the Assessor's Department. Proposal A and state law do not allow for partial credit. As an example, even if you move into a non-homestead property on November 5th, the exemption does not begin until the following year. Recent legislation has allowed the granting of a second homestead under certain conditions. A "Conditional Rescission" (Form 4640) is available when the previous principal residence is not occupied or rented and is listed for sale. Please contact the Assessing Department if you think you qualify for the additional exemption.
The PRE is different from the Homestead Property Tax Credit, which is related to your Michigan Individual Income Tax Return.