Treasury: Principal Residence Exemption doesn’t expire

Michigan
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This Feb. 13, 2019, shows multiple forms printed from the Internal Revenue Service web page that are used for 2018 U.S. federal tax returns in Zelienople, Pa. For taxpayers who itemize, the 2 percent miscellaneous itemized deduction was a handy catchall bucket for expenses such as investment fees and expenses and tax-preparation fees. It wasn’t […]

The Michigan Department of Treasury is reminding Michiganders that a Principal Residence Exemption, known as a PRE, does not expire.

Inaccurate posts being shared on social media are claiming that Michigan taxpayers will experience a surge in property taxes due to their PRE expiring after 25 years.

Since the posts started being shared the state Treasury Department and local assessors are experiencing a large amount of in inquiries from residents who are trying to verify this misinformation or are submitting unneeded paperwork.  

“Simply put, there isn’t an expiration date on a Principal Residence Exemption,” said acting Deputy State Treasurer Anne Wohlfert, who oversees Treasury’s State and Local Finance programs. “Homeowners who have claimed a Principal Residence Exemption do not have to refile the required form unless they move.”

A PRE exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills.

To qualify for a PRE, a person must be a Michigan resident who owns and occupies the property as a principal residence.

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