By Jason C. Long, Williams Williams Rattner & Plunkett, PC
Michigan’s property tax laws apply a reduced millage rate to a homeowner’s one true, fixed, and permanent home. This is known as the principal residence exemption, or PRE, and generally is available for an owner-occupied home. A limitation applies when parts of the home are rented to others. The limitation is that the homeowner may rent a portion of the home to another and still qualify for the PRE “as long as that portion of the dwelling or unit that is rented or leased is less than 50% of the total square footage of the living space in the residence.” MCL 211.7dd(c).
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