2007 House Bill 5334 (Revise homestead property tax exemption May 1 deadline )

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Introduced by Rep. Fred Miller (D) on October 18, 2007, to grant a pro-rated homestead property tax exemption after May 1 to a person who acquires and occupies a homestead for which an exemption was not already on the tax roll on May 1. Under current law, if an owner has not filed the principal residence (homestead) property tax exemption for a residence by May 1, then the property tax exemption does not apply until the following year. This only affects previously non-homestead property that is being converted to a principal residence, such as new construction, rental property or a vacation home. If a person buys a principle residence with an existing exemption, that existing exemption continues, whether the transaction occurs before or after May 1.
- Referred to the House Tax Policy Committee on October 18, 2007.

Most Recent Comments

1) When will we know [by Anonymous Citizen on August 30, 2008]
if this passed and is now law?
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2) Foreclosures also affected [by lynnafton on July 24, 2008]
Currently, more home buyers are being affected by the May 1st deadline than ever before, as almost all foreclosure properties are non-homestead status. This causes the lender on the new buyer's mortgage to "reserve" tax amounts at closing to pay the future tax bills based on the non-homestead amount. The current unequal and arbitrary May 1st deadline is preventing people from buying homes because it also raises their monthly mortgage payments by almost a double tax amount. Back when the Headlee amendment passed, it may have been difficult to pro-rate the homestead exemption, but in this day and age of computers it should be a simple fix. (The pro-ration of the homestead on vacant first homes when still owned by the previous resident has been granted appeal through December now!) This bill, HB 5334 will correct a basic flaw in the system which never should have occurred in the first place, because home buyers should be taxed on an equally applied basis.
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3) Administrator [by Anonymous Citizen on June 24, 2008]
Would this be effective for previous years? I think it is unfair to be charged non-homestead taxes because the previous occupant had the property classified as non-homestead. We moved in our home in June and were charged the higher rate which almost doubled our taxes.

Diane Remington
South Lyon, MI
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