Principal Residence Exemption / Rescind
Principal Residence Exemption (PRE) Affidavit
If you own and occupy your principal residence, it may be exempt from a portion of your local school operating taxes. To claim an exemption, complete the PRE Exemption Affidavit Form and file it with East Grand Rapids’ assessor by June 1 of the year of the claim. The assessor will adjust your taxes on your next property tax bill. Note that this is an exemption from part of the taxes and does not affect your assessment.
Owning means you hold the legal title to the principal residence or that you are currently buying it on a notarized or recorded land contract. Renters should not file this form.
Occupying means this is your principal residence, or the place you intend to return to whenever you go away. It is the address that appears on your driver’s license or voter registration card. You may have only one principal residence at a time. Vacation homes and income property which you do not occupy as your principal residence may not be claimed.
Rescinding Your Exemption
If you claim an exemption, then stop using it as a principal residence, you must notify your assessor within 90 days of the change or you may be penalized.
Interest and PenaltyIf it is determined that you claimed property that is not your principal residence, you may be subject to the additional tax plus penalty and interest as determined under the Property Tax Act.
Conditional Rescission of Principal Residence Exemption
Homeowners who have moved to a new principal residence in Michigan and have their previous home for sale may qualify for a conditional rescission for up to three tax years.
To initially qualify for a Conditional Rescission for PRE, the application form must be filed with the East Grand Rapids Assessor's Office on or before June 1 or November 1 of the first year the exemption is claimed. Thereafter, the owner must annually submit this form on or before December 31, to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.
Request to Rescind Homeowner’s Principal Residential Exemption
The Request to Rescind PRE Exemption Form enables people who are selling or converting their home to another use (i.e., converted it to rental property, commercial use, or you have moved out but the property is not yet sold) to rescind their exemption. It also allows owners to change the percentage that they occupy as their principal residence. This form must be filed within 90 days of the change. The rescind becomes effective January 1 following the change of use of the property.