Tax Savings Programs
Active Duty Military Affidavit Information
Michigan law allows an owner to retain a Principle Residence Exemption (PRE) while on active duty in the United States Armed Forces if all or any portion of the dwelling or unit is rented or leased, so long as the dwelling or unit otherwise would qualify as the owner's principal residence. The property that currently qualifies as a principal residence continues to qualify for three years after any portion of the dwelling or unit included in, or constituting the principal residence, is rented or leased to another person and is used as a residence.
The owner must submit a Principal Residence Exemption Active Duty Military Affidavit, Form 4660 to the assessor for the city or 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 2017, the form must be submitted on or before May 1, 2017.
Industrial Facility Exemption
The Industrial Facilities Exemption PA 198 of 1974 provides a tax incentive to manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities. An Industrial Facilities Exemption certificate entitles the facility to a 50% exemption on most taxing authorities from ad valorem real and/or personal property taxes for a term of 1-12 years as determined by the local unit of government.
Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the state level by the Property Services Division and the Michigan Economic Development Corporation. For more information please see the STC website.
The city will grant exemptions due to poverty according to Section 211.7u of the Michigan Compiled Laws. Poverty exemptions must be applied for each year. City Council approves the use of a poverty exemption application which consists of an asset test along with an income test that coincides with the federal poverty guidelines.
Medical and extraordinary hardship situations may be used to qualify applicants who do not otherwise meet the income and asset tests as stated in the application. Poverty applications will be heard by the March, July, and December boards of review. Please contact the Assessor's office at 586-447-3355 for an application.
Principal Residence Exemption
A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mils. To qualify for a PRE, a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan individual income tax return. Form 2368 must be filed with the City Assessor by June 1.
Veteran Tax Exemption
Real estate used and owned as a homestead by a veteran who was honorably discharged with a 100% service connected disability, has a certificate from the United States veterans' administration, or its successors, certifying the soldier or sailor is receiving or has received pecuniary assistance due to disability for specially adapted housing, or has been deemed unemployable and is being paid at the 100% disabled rate shall be exempt from taxation. To obtain the exemption an affidavit, accompanied by the certificate, showing the facts required by this section and a description of the property shall be filed with the supervisor or other assessing officer. The affidavit and accompanying certificate shall be filed during the period beginning with the tax day for each year and ending at the time of the final adjournment of the local board of review.
If a soldier or sailor entitled to the exemption permitted by this section dies, the exemption shall continue in favor of the un-remarried surviving spouse of the soldier or sailor.