In case you weren't aware, if you or a client have purchased another home in the State of Michigan,
and they are trying to sell their original residence, they may be able to claim homestead exemptions
on both properties for up to 3 years. Please review the guidelines below and notify your sellers!
I am taking my clients paperwork to the Grand Rapids Assessor personally this week to meet the
May 1 deadline. It could save them thousands of dollars.
Principal Residence Exemption Forms Now Available- Must be Submitted to Assessors by May 1
As a follow up to MAR's e-news alert last week regarding the Passage of Public Act 96 (see article) which
enables home sellers to retain two principal resident exemptions for property still on the market after
the seller has moved elsewhere in the state, the “Conditional Rescission of Principal Residence
Exemption Form #4640" form from the Department of Treasury is now available. To qualify for the
conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of
government where the property is located on or before May 1, 2008.
Public Act 96 enables a person who has established a new principal residence to retain a Principal
Residence Exemption (PRE) on property previously exempt as the owner’s principal residence that
is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption
Form #4640. The conditional rescission allows an owner to receive a PRE on his or her new property
and on previously exempted property simultaneously if certain criteria are met:
• the property is not occupied,
• the property is for sale
• the property is not leased
• the property is not used for any business or commercial purpose
*The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not
retroactive to previous tax years.
Again, To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the
assessor of the local unit of government where the property is located on or before May 1, 2008.
The Board of Review has no authority with regard to a conditional rescission and cannot institute a
conditional rescission on behalf of an owner if a deadline is missed or for previous tax years. An
owner must annually submit Form #4640 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.
The Department of Treasury is in the process of developing a Frequently Asked Question sheet to
address various issues related to the new conditional rescission. They hope to have those questions
posted on the web some time next week. Form #4640, which includes an instruction page, can also
be found at www.michigan.gov/taxes.
If you have any questions regarding conditional rescissions, please feel free to contact the PRE Unit
at (517) 373-1950 or email Patrick Huber, Manager of the Property Tax Exemption Section, at
Copyright by Terry Westbrook 2008
Contact me: 1-888-240-1968 x 0 toll free
Website: Terry Westbrook.com
The authors of the this blog write about Grand Rapids Real Estate,
the Greater Grand Rapids MI area, and what it is like to live in
West Michigan. We believe: Grand Rapids is a Great Place to Live!
Contact Terry 616-292-7263