Old and Busted: Two Homes, One Exemption. New Hotness: Two Homes, Two Exemptions!
How’s this for Michigan’s government for thinking forward? The legislature and Governor Granholm recently passed and signed a bill into law that will allow folks that own two homes in the State of Michigan to apply for two Principal Resident Exemptions!
Huh?! What’s a Principal Resident Exemption and why is having two a good thing?
The State of Michigan, until this bill passed, allowed residents in the state to register one of their properties as a primary residence. This allowed the homeowner to qualify for a lower tax millage. The converse of this, is that if a Michigan resident had a second home, say up north, the second home was seen as not a principal residence and therefore taxable at a higher rate.
So, if you bought a home with selling your primary residence, this bill will allow you to claim two primary residences for up to 3 years. But there are a few catches:
- Property cannot be occupied;
- Property cannot be rented or for rent;
- Property cannot be for business or commercial use;
- Property must be for sale.
Ann Arbor home owners looking to move up in this market have yet another reason to make the move sooner rather than later!
If you are looking to make this move, check out the Team366 Search and Save or simply give us a call at 734.564.7465 to learn how this may work to your benefit.
