On December 27, 2012 the Governor signed House Bill 4134 (now Public Act 494 of 2012) and House Bill 4561 (now Public Act 504 of 2012) into law. The new laws take effect immediately.
PA 494 removes the 18-mill school tax on new residential construction on development property for three years or until the new construction was no longer located on development property, whichever occurs first. The exemption would apply for taxes levied after November 1, 2012.
"Development property" means real property on which a residential dwelling, condominium unit, or other residential structure is located, if the dwelling, unit, or structure meets all of the following conditions:
1. Is not occupied and has never been occupied.
2. Is available for sale.
3. Is not leased.
4. Is not used for any business or commercial purpose.
"New construction" means property not in existence on the immediately preceding tax day and not replacement construction. The exemption will apply for taxes levied after November 1, 2012.
That’s a property tax reduction of $1,800 for every $100,000 in taxable value on your inventory home or 20 times the $90 annual dues you pay to the state association.
To claim an exemption under subsection (1), an owner of development property must file an affidavit claiming the exemption with the local tax collecting unit on or before June 1 for the immediately succeeding summer tax levy and all subsequent tax levies or on or before November 1 for the immediately succeeding winter tax levy and all subsequent tax levies. The Michigan Department of Treasury is currently designing the affidavit form. HBAM will let you know when the form is available
Lee Schwartz
Executive Vice President for Government Relations
Home Builders Association of
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