Time is running out to take advantage of The Principal Residence Exemption: Forms are due May 1st
April 22, 2009 – (RealEstateRama) — Last year, you may recall the Passage of Public Act 96 of 2008, which enables home sellers to retain 2 principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. To obtain the exemption, home sellers need to submit the “Conditional Rescission of Principal Residence Exemption Form #4640″. The form is available on the Michigan Department of Treasury website.
Public Act 96 of 2008 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 his or her 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
• the property is not used for any business or commercial purpose
To qualify for the conditional rescission in 2009, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2009. 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. An owner must annually submit Form #4640 on or before May 1st 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.
If you have any questions regarding conditional rescissions, please feel free to contact the Homeowner’s Principal Residence Exemption Unit, at (517) 636-4320, or P.O. Box 30440 Lansing, MI 48909.
