Lodi Township, Michigan

PA 624 has expanded the number of years the local unit can go back to correct a Homestead Exemption (Now Principal Residence Exemption). The local unit may now correct for the current year and 3 years prior.

PA 140 has changed the name of the Homestead Exemption to the “Principal Residence Exemption”. The change will avoid the confusion between the Homestead Exemption and the Homestead Property Tax Credit, that can be claimed against the Michigan Income Tax. Tax status day for the Principal Residence Exemption is now changed back to May 1st. You must own and occupy your property by May 1st of the current year to receive the Principal Residence Exemption for that year. Property owners with existing exemptions will not be required to file another affidavit to retain the exemption.

PA105 enhances the Department of Treasury’s auditing of exemptions wrongfully filed. This act also provides additional authority to local units, County Treasurers, or Equalization Departments to audit and deny these wrongfully filed exemptions. We may deny these exemptions for the current and 3 prior years. Interest on the taxes not paid because of a wrongfully claimed homestead exemption is 1.25% per month simple interest from the date the taxes originally would have been subject to interest or penalty had the exemption not been claimed. In addition penalties computed from that date are added to the taxes.

For answers to commonly ask questions about your Principal Residence Exemption please follow the following link  www.michigan.gov/documents/2856_11014_7.pdf