Frequently Asked Questions
- What is a Property Transfer Affidavit?
P.A. 415 defines transfers and requires that whenever a property transfers ownership, a Property Transfer Affidavit must be filed with the assessing office (even if you are not recording the deed). This affidavit must disclose the following (1) The parties to the transfer, (2) The date of the transfer, (3) The actual consideration for the transfer, and (4) The property identification number or legal description. The Property Transfer Affidavit must be filed within 45 days of transfer.
- What is the deadline for filing a Principal Residence Exemption?
The filing deadline is May 1 of each year.
- I moved to a different home before the May 1 filing deadline. May I claim my new home?
Yes. If you buy a new home and move into it before the May 1 filing deadline, you may claim an exemption on the new home. New residences may be claimed by filing a Principal Residence Exemption (FORM 2368) that is available at closing. If your agent does not provide you with a FORM 2368, you can stop by the Assessor's office at city hall and pick one up or call the Assessor's office at (989) 779-5355, and we will send one to you.
Rescinding and Exemption
- When I claim an exemption on my new residence, what happens to the exemption on the residence I sold?
The exemption on your old home remains in effect until December 31 of the year your home is sold. If you move to your new residence before your first home is sold, the exemption expires on December 31 of the year you move out. You must rescind the homestead exemption within 90 days of the date you no longer own or occupy the property as your principal residence. You may rescind your exemption on the REQUEST TO RESCIND/WITHDRAW Principal Residence Exemption (Form 2602) at closing. If your agent did not provide you with the Form 2602, download it here, or stop by the Assessor's office at city hall and pick one up or call the Assessor's office at (989) 779-5355, and we will send one to you.
- I am moving into a new home and converting my current home to a rental property in November. Do I have to rescind the exemption on my current home?
Yes, within 90 days of moving. The exemption will remain in place until December 31 of the year the use is changed from your principal residence to a rental property.
- What determines principal residence?
The test the Michigan Department of Treasury uses to determine principal residence includes such things as where you are registered to vote, the address on your driver's license, where your children attend school, and the address from which you file your income tax returns.
- I own two homes in Michigan. For which home do I claim the exemption?
Claim the exemption for the home you occupy as your principal residence.
- I have a home in Michigan and in another state. May I claim an exemption on my Michigan home?
You must be a Michigan resident to claim this exemption. You may claim your Michigan home only if you own it and occupy it as your principal residence. You may not have more than one principal residence.
- May renters file for this exemption?
No. You must own your principal residence to claim an exemption.