May 1 Homestead Tax Law with Washtenaw County Catherine McCLary video by Kathy Toth
Washtenaw Homes Sellers can Avoid Paying Extra Taxes
Catherine McClary, Washtenaw County Treasurer provides a brief synopsis of the homestead tax law in the video above.
Passage of Public Act 96 enables home sellers to retain two principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. As such, the “Conditional Rescission of Principal Residence Exemption Form #4640 form is now available from the Department of Treasury.
Public Act 96 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. The conditional rescission allows an owner to receive a PRE on new property and on previously exempted property simultaneously if certain criteria are met:
• the property is not occupied
• the property is for sale
• the property is not leased or available for lease
• the property is not used for any business or commercial purpose
Additional information can be found on www.ewashtenaw.org/government/treasurer and the law can be found on www.legislature.mi.gov. I have included the Conditional Rescission of Principal Residence Exemption form along with instructions here for convenience. Also below is the law approved by the Governor on April 8, 2008. The Department of Treasury is developing a Frequently Asked Question sheet to address various issues related to the new conditional rescission. Form #4640 and the instruction page can also be found at www.michigan.gov/taxes
Please click on the image above to view the PRE Instructions and Form in Full View
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 an owner if a deadline is missed or for previous tax years.
To continue to qualify for a PRE 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.
Questions can be directed to PRE Unit at (517) 373-1950 or email Patrick Huber, Manager of the Property Tax Exemption Section, at huberp@michigan.gov.
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July 9th, 2008 at 7:26 AM
[...] Consider any rise in property taxes that may ensue by not being a primary homestead. (For more detailed information on the "Homestead Tax" follow this link.) There are other costs they may incur as a result of vacancy, repairs, utilities, legal, [...]