Senate approves Victory principal residence exemption bill

LANSING, Mich. — The Michigan Senate on Wednesday approved Sen. Roger Victory’s legislation to allow homeowners who were unable to move in to their new homes before June 1 because of the governor’s COVID-19 response to reduce their property taxes.

“This bill is about limiting the impact of the coronavirus pandemic and the governor’s orders on new Michigan homeowners,” said Victory, R-Hudsonville. “The governor’s stay-at-home executive order banned all nonessential home construction, delaying the completion of some new Michigan homes. This reform would allow hardworking folks affected by the governor’s action to still receive this key property tax relief.”

Senate Bill 940 would extend the time frame a new homeowner has to file their paperwork to receive the principal residence exemption (PRE) for the 2020 summer property tax levy from June 1 to July 1 in cases in which the homeowner could not occupy their new home prior to the deadline due to the governor’s ban on nonessential construction.

The PRE exempts a homeowner’s principal residence from the tax levied by a local school district for operating purposes, up to 18 mills. The homeowner must file an affidavit with their local unit of government where the property is located.

To qualify for the exemption for the summer tax levy in normal years, the affidavit must be submitted by June 1.

The bill now heads to the House of Representatives for consideration.

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