The Principal Residence Exemption in the State of Michigan exempts homeowners, who also occupy the property as their principal residence, from paying 18 mills of school operating tax. To be eligible for the exemption, a property owner must live in the property, cannot have another similar exemption in Michigan or another state, or owner vacant land adjacent to their home.
The Office of the Midland County Treasurer conducts annual audits of the Principal Residence Exemption. An audit of your property may be conducted if there is reason to believe you are no longer occupying your property as your principal residence.
If you receive an audit letter, please be sure to complete the form and return proof of your residency such as a copy of your driver's license, the address portion of your State of Michigan Income Tax Returns and current bill such as electric or water. If you do not return the audit form and requested information, your Principal Residence Exemption may be denied for up to three prior years. This will result in a bill being owed by you for additional taxes.
You may also contact Jan Mann at (989) 832-6721 if you have additional questions. See the State of Michigan Principal Residence Exemption Guidelines if you need additional information.