Governor Granholm signed legislation allowing Michigan property homeowners to keep 2 principle resident exemptions for property still on the market after the seller has moved elsewhere in the state. The signing of this legislation is a huge step in aiding struggling sellers who have had homes on the market for over a year and have lost their principle residence status on that property.
Prior to this legislation, if a homeowner still owned two homes and May 1 rolled around, the homeowner would lose their homestead credit and property taxes would go up nearly 1 1/2 times what it was as their principal residence. Now homeowners in Michigan can keep two properties homesteaded at the same time, getting a tax break on both properties.
House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner's principal residence if the following circumstances are met:
1. The property is not occupied
2. The property is for sale
3. The property is not leased or available for lease
4. The property is not used for any business or commercial purposes
Retention of an existing homestead credit for an unoccupied home that is currently for sale would offer relief to sellers who have had to relocate for whatever reason.
Please contact me for the forms by May 1, 2008! Call me at 248-417-6662 or email Kristy.Dunnigan@gmail.com.
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