Homestead tax change moving through legislature

The Michigan Association of Realtors has been working with state legislators to make a change to the tax laws in Michigan to alleviate one hurdle in purchasing bank owned property. In Michigan, a property held as a primary residence allows the owner to receive an 18 mill tax exemption from their annual property tax bill. This exemption does not apply to second homes in Michigan. When a bank takes possession of a foreclosed home today, the tax status of that property would be non-homestead because it is not the lenders primary residence. The problem comes in when a buyer wants to purchase that home as a primary residence. Until the exemption can be filed (used to be a May 1 deadline each year) the buyer would have to pay the additional 18 mills. This can almost double the property taxes for a given property. It's expected that The Governor will sign the bill and it will become law very soon. Here is a link to track the bill's progress. http://www.legislature.mi.gov/(S(5izxjdqm5hvguda5hbh0sz45))/mileg.aspx?page=getObject&objectName=2009-SB-0077

As a member of The Michigan Association of Realtors, I'm proud that our Association has once again fought, at our cost, for the benefit of property owners in Michigan.