Sellers Eligible for 2 Principal Residence Exemptions
Yes, your read it correctly. House Bill 4215 which is now known as Public Act 96 of 2008 was signed into legislation yesterday by Governer Jennifer Granholm. The bill was sponsored by Representative Ed Gaffney.
This is great news! This should give sellers that have already sold their house and bought another one a big break in taxes, as previously in Michigan you were only allowed 1 principal residence exemption. There are some stipulations that have to be met.
1. The property cannot be occupied
2. The property cannot be rented out, or available for rent
3. The proerty cannot be used for business or commercial use
4. The property has to be up for sale
This additional exemption is good for up to 3 years.
Between this and the news of the transfer tax act , (if you haven't heard of that one, click on the link to read Missy Caulk's post) These are both positive things to help our struggling real estate market make a rebound.
Thank you to MAR, RPAC, Representative Gaffney & Governer Granholm. I believe our market is correcting itself and these items will help to make a quicker recovery.
Mike Mitchell - Realtor®
GMAC The Kee Group
Direct: (586)291-2652
http://www.mmhomesearch.com/
Mike,
I agree that this is a great step forward for those that are working on selling their second home in this market. I had two calls to my law office just this last week on this issue. Now that this is in place I think we, as professionals, have a duty to get the information out to clients since the deadline, April 30, is rapidly approaching. As many of us, but not clients know, whatever a property has for a PRE designation on April 30 is what is has for the taxing year.