How Michigan Property taxes work - homestead taxes and non-homestead taxes part 1So how do Michigan property taxes work? To explain Michigan property taxes is not easy. But to break it down there are 2 ways Michigan properties are taxed. The are either homestead or non-homestead taxes. Michigan Homestead taxes - if you live in the property as your primary residence you get a reduction in your Michigan property taxes Michigan Non-homesteaded property taxes - If the property is a commercial property, an investment property, a vacation home, or a rental property you pay full amount of taxes. A primary residence is defined as the home as you come back to when you go away. When you buy a home you will get a homestead exemption form from the title company. You will have to fill it out at the closing and sign it. After closing you have to take the form down to the city you have bought the house in. They will take the form and "grant" you the homestead exemption. You will get the reduced homestead taxes. You can only claim one Michigan home as your primary residence and get the homestead exemption. If you are married you can only claim one too. Your wife CAN NOT claim another home as her primary residence and get the homestead exemption. It is fraud to do so. If you claim a property that is not your primary residence or claim multiple property you will be liable for penalty and interest. So the bottom line is if you are going to buy a Michigan home and live in it, you will fill out the Principal Residence Exemption (PRE) Affidavit and get a reduced tax rate. The form will be part of the closing. I wish explaining how Michigan property taxes work was easy, but it is going to take a few different blogs to fully explain it all. If you have any questions feel free to call me. Russ Ravary cell 313-310-9855 Search Metro Detroit homes for sale http://www.detroitmichiganrealestatehomes.com/0050E4 Posted on Nov 23, 2009 @ 9:03 pm by russ.ravary - View Profile
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Comment from: Fred Genther [Visitor] Approximately what percentage of said property taxes will be saved if you are going from a non-homestead (vacation home) to a homestead (living in Michigan, retired). is it a big percentage, like over 30%?  Permalink Jan 07, 2011 @ 4:51 pmComment from: Ron Gillmore [Visitor] Russ, Thanks for the info. You are correct that MI prop tax is more than a little confusing. What if I purchase a vacation home (non-homestead0 and than move into it in a few years? Can I claim homestead after the initial purchase? Just curious.
Thanks, Ron Permalink Dec 26, 2011 @ 9:23 pmComment on this article This post has 1 feedback awaiting moderation... |
