Conditional Rescission of Principal Residence Exemption
On April 8, 2008 Governor Granholm signed House Bill 4215, amending Section 211.7cc of the General Property Tax Act. This enables a person who has established a new principal residence to retain a Principal Residence Exemption on property previously exempt by submitting a Conditional Rescission of Principal Residence Exemption (PRE) form (Form 4640). In this article, Delta Township Assessing department addresses commonly asked questions as issued under the authority of Public Act 96 of 2008.
What is a conditional rescission?
A conditional rescission allows an owner to receive a PRE on his or her current property and on previously exempted property simultaneously if the previous principal residence meets ALL of the following conditions:
- is not occupied
- is for sale
- is not leased
- is not used for any business or commercial purpose
How do I apply for a conditional rescission?
To apply for a conditional rescission, the owner must submit a Conditional Rescission of Principal Residence Exemption form to the Assessor for the township in which the property is located on or before May 1 of the first year of the claim. For example, to qualify for a PRE in 2011 under a conditional rescission, the form must be submitted on or before May 1, 2011.
How long is the conditional rescission effective?
An owner may receive the PRE on the previous principal residence for up to three years if the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. The owner must annually submit a Conditional Rescission of Principal Residence Exemption Form by December 31 to verify to the assessor that the property for which the PRE is retained continues to meet the qualifying conditions. For example, if an owner received a PRE in 2010 by submitting Form 4640, he or she would have to submit another form by December 31, 2010 to qualify for a PRE in 2011.
If an owner misses the May 1 or the December 31 deadline, can the Board of Review reinstate the PRE under a conditional rescission?
NO. This Act did not give the Boad of Review authority to act on forms submitted after the May 1 deadline, even if the owner otherwise qualifies.
Since my prior principal residence, which I still own meets all qualifying conditions and has been this way for all of 2006 and 2007, can I get my PRE put back on my property for 2006 and 2007 by submitting Form 4640?
NO. A conditional rescission is not retroactive. The first year of eligibility is 2008 if the form was submitted on or before May 1, 2008.
If I leased my home for a period of time after it was no longer my principal residence, but no longer lease it, and all other conditions are met, can I still qualify for a conditional rescission?
NO. Once a property has been leased, the opportunity to receive a conditional rescission is no longer available.
If I move into an apartment that I rent, and all other conditions are met, would I qualify?
NO. The owner of the property must be eligible for an exemption for his or her current principal residence. A person renting an apartment is not eligible for a PRE.
If I move into another state, can I qualify?
NO. If a person moves to another state, he or she would not qualify for a PRE since an exemption, as defined in MCL 211.7cc, cannot be claimed.
If you have any other questions in regards to a conditional rescission or PRE eligibility, please contact the Assessing Department at 517.323.8520.
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Lansing MI 48917
Fax: (517) 323-8599
8 a.m. - 5 p.m.