Current Laws


On April 8, 2008, Governor Granholm signed House Bill 4215, enacting Public Act 96 of 2008, which amended Section 211.7cc of the General Property Tax Act, Public Act 206 of 1893.  The amendment enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner's principal residence that is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption Form #4640 (attached)  The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met.  An owner may receive the PRE on the previous principal residence for up to three years if that property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.  The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not retroactive to previous tax years.  To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008.  The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of a owner if a deadline is missed or for previous tax years.  An owner must annually submit Form #4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.  The Department of Treasury is in the process of developing a Frequently Asked Question sheet to address various issues related to the new conditional rescission.

Michigan Tax Tribunal

The Tribunal is an administrative court that hears tax appeals for all Michigan taxes. Most of the Tribunal's appeals involve property tax; however, the Tribunal also hears business and individual tax disputes. The Tribunal is divided into two divisions: the "Entire Tribunal" and the "Residential Property and Small Claims" Division. With the exception of principal residence and qualified agricultural exemption appeals, any case may be filed in the Entire Tribunal. Only certain cases-all property disputes involving residential property, principal residence exemptions, poverty and qualified agriculture exemptions and disputes under $6,000 may be filed in the Small Claims Division.


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Top 10 Metropolitan
Areas with Home
Price Depreciation

First Quarter 07-First Quarter 08

Metro Area
Loss
Miami
25.9%
Las Vegas
24.6%
Phoenix
23.0%
Los Angeles
21.7%
San Diego
20.5%
San Francisco
20.2%
Tampa
19.6%
Detroit
17.9%
Wash. D.C.
15.3%
Minneapolis
14.4%
Source: Standard & Poor’s/Case-Shiller


Tax Rates

Property owners can calculate their tax bill by multiplying that taxable value by the tax rate.
In Michigan, the property tax rate is called a millage, and it is figured in mills. A mill equals $1 in taxation for every $1,000 in taxable value.

A parcel may have several millages in its tax rate. There is likely to be a millage to operate local government, and another for the county. Part of the millage rate may include mills for libraries, police and fire or schools.