Principal Residence Exemption (PRE)

A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills. Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims. To qualify for a principal residence exemption on a dwelling, MCL 211.7cc requires that the property be:

  1. Owned by a qualified owner as defined by MCL 211.7dd(a)
  2. Occupied as a principal residence by that owner of the property
  3. None of the disqualifying factors listed in MCL 211.7cc(3) apply; and
  4. Claimed by the owner of the property by filing an affidavit with the local tax collecting unit in which the property is located.

The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.

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