Have you heard neighbors talk about the “homestead exemption” and wondered if you’re missing out? If you own or plan to buy a home in Macomb Township, Michigan’s Principal Residence Exemption can lower your property tax bill when the home is your primary residence. It is a straightforward benefit, but the steps and timing matter.
In this guide, you will learn what the PRE is, who qualifies, how it affects your taxes, and how to file with the Macomb Township Assessor. You will also get practical tips for buyers and sellers and a simple checklist to get it done. Let’s dive in.
PRE basics
The Principal Residence Exemption, often called the homestead exemption, reduces the property taxes on the home you use as your principal residence. It does not change your home’s assessed value. It changes how much of your taxable value is subject to certain local millages for your primary home.
The PRE is created by Michigan law and administered by the Michigan Department of Treasury and the State Tax Commission. Local assessors, including the Macomb Township Assessor, process filings and apply the exemption to qualifying homes.
Who qualifies in Michigan
To qualify, you generally need to meet these core requirements:
- You live in the home as your principal residence.
- You have an ownership interest in the property.
- You claim only one principal residence at a time.
- Your use of the property aligns with state rules. Mixed use can affect eligibility.
Common scenarios
- New buyer who moves in: You buy a home in Macomb Township and make it your principal residence. You file the PRE affidavit with the township assessor after closing.
- Converting a rental to your home: If you stop renting and move in, you can file for PRE. Evidence of your move and timing helps the assessor determine when it applies.
- Seniors or life changes: Moving to assisted living or out of state can end the PRE on your prior home. If you buy another Michigan home and make it your principal residence, you may file there.
- Divorce, separation, or life estate: Ownership and occupancy changes can affect PRE. The assessor may request documents to confirm who lives in the property and who holds ownership rights.
Edge cases to watch
- Seasonal or secondary homes are not your principal residence.
- Short-term or long-term rentals may reduce or remove eligibility depending on use.
- Properties held in a trust, LLC, or corporate name follow special rules. Trustees or beneficiaries may qualify differently. Ask the assessor how your ownership type is handled.
How PRE affects your tax bill
PRE reduces the portion of your taxable value that is subject to certain local millages for a principal residence. The exact savings depend on three things: your home’s taxable value, the local millage rates in Macomb Township, and which millages the law exempts for a principal residence.
PRE does not stop taxable value from uncapping after a transfer of ownership. When you buy a home, taxable value can reset under state rules. PRE then applies to the new taxable value once granted.
Illustrative example only
- Home SEV: $150,000
- Taxable value: $150,000 (illustrative)
- Local millages: vary by year and district
If the PRE applies, your tax bill is lower than a non-principal residence because certain operating millages do not apply to your principal residence. The dollar savings depend on current Macomb Township and school district millage rates. Ask the assessor for an estimate based on your parcel.
How to file in Macomb Township
Filing is straightforward if you prepare the right documents. The Michigan Department of Treasury provides the statewide PRE affidavit form, and you file it with the Macomb Township Assessor.
Follow these steps:
- Gather proof of ownership. Examples include your deed, land contract, or closing package.
- Gather proof of occupancy. Common items are your Michigan driver’s license, voter registration, vehicle registration, or recent utility bills showing you live at the property.
- Obtain the current PRE affidavit form. Confirm you are using the current Michigan Department of Treasury form.
- File with the Macomb Township Assessor’s Office. Ask about any supporting documents they require locally.
- Confirm timing. If you recently moved in or closed, ask when the PRE can start and whether it can apply retroactively within state timeframes.
Boards of Review meet on scheduled dates during the year. Filing as soon as you establish your principal residence helps the assessor process your exemption for the correct tax cycle.
Buying or selling in Macomb Township
- Buyers who will occupy: File your PRE affidavit promptly after closing. Ask your closing agent what will be submitted and what you must file yourself with the assessor.
- Sellers: The PRE ends when the home is no longer your principal residence. At closing, confirm how the PRE status is handled and ask your agent or closing agent how local tax prorations are calculated.
- Moving within Michigan: If you move from one Michigan home to another, file a new PRE in your new city or township. Let the prior assessor know the old property is no longer your principal residence.
Common pitfalls
- Waiting too long to file, which can limit retroactive relief.
- Submitting incomplete documents that do not clearly prove ownership and occupancy.
- Assuming PRE eliminates all taxes. It reduces certain millages but does not remove all property taxes or special assessments.
- Overlooking mixed use. Renting rooms or operating a business at home can affect the exemption.
Next steps checklist
- Gather your deed or closing documents.
- Collect proof of occupancy such as driver’s license, voter registration, or utility bills.
- Contact the Macomb Township Assessor for the current PRE affidavit and any local checklist.
- Ask for current local millage rates and an estimate of how PRE impacts your bill.
- If buying or selling, coordinate with your closing agent and your real estate professional to keep PRE paperwork and tax prorations on track.
When to contact officials
For current forms and rules, reach out to the Michigan Department of Treasury or the State Tax Commission. For local filing questions, processing timelines, and millage details in Macomb Township and Macomb County, contact the Macomb Township Assessor and the Macomb County Equalization Department or County Treasurer. Policies and schedules can change, so getting confirmation directly from these offices helps you file correctly the first time.
If you want help aligning your PRE filing with a purchase or sale timeline, our team is happy to coordinate the steps with your closing.
Ready to make your move in Macomb Township with fewer surprises and a clear plan for your PRE filing? Connect with Raymond Matti for local guidance from contract to closing.
FAQs
What is Michigan’s Principal Residence Exemption?
- It is a state-administered property tax exemption for your principal residence that reduces how much of your taxable value is subject to certain local millages.
Who qualifies for PRE in Macomb Township?
- You must own the home and live in it as your principal residence, claim only one principal residence, and meet state rules on use and ownership.
How do I file the PRE after buying a home?
- Complete the Michigan Department of Treasury PRE affidavit and file it with the Macomb Township Assessor, along with proof of ownership and occupancy.
How much money does the PRE save each year?
- Savings vary based on your taxable value and current local millage rates; ask the Macomb Township Assessor or County Equalization for an estimate for your parcel.
Does renting part of my home affect my PRE?
- Mixed use, such as renting a room or operating a business, can lead to a partial exemption or denial; ask the assessor how they allocate use.
What happens to PRE when I sell my home?
- Your PRE ends when it is no longer your principal residence; the buyer who will occupy should file their own PRE affidavit after closing.
