Form 4614 - Principal Residence Exemption Denials By The Michigan Department Of Treasury Faq

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Michigan Department of Treasury
4614 (Rev. 09-09)
Principal Residence Exemption Denials by the Michigan Department of Treasury
Frequently Asked Questions
1.
What is a Principal Residence Exemption (PRE)?
In accordance with MCL 211.7dd, a principal residence is defined as the “… one place where an owner of the property has his or her true, fixed,
and permanent home, to which whenever absent, he or she intends to return ….” An exemption means that the home, after applying and qualifying
with the local assessor, is not subject to the tax levied by a local school district for school operating purposes up to 18 mills.
2.
Why did I get a PRE denial letter?
The Michigan Department of Treasury mailed a questionnaire requesting documentation to verify that you owned and occupied the
property as your principal residence, and either no response to that letter was received or the response received did not verify that the
property was your principal residence for the year(s) being denied.
3.
How do I appeal a denial of a PRE?
Submit your appeal in writing to the Department within 35 days of the date on the denial letter. Include a copy of the denial letter and
state that you are requesting an informal conference, list the reasons you disagree with the denial, and provide documentation showing you
owned and occupied the property as your principal residence for each year denied.
4.
How does the Department of Treasury determine a taxpayer’s principal residence?
Factors to be considered in determining a principal residence include where taxpayers keep their most important possessions, house their
family, vote, maintain club and lodge memberships, buy automobile licenses, maintain a mailing address and banking location, operate a
business, or sue for divorce. However, no one of these factors is controlling.
5.
What is acceptable verification of occupancy and Michigan residency to show I am entitled to the exemption?
Copies of at least four different pieces of documentation dated between January 1 and May 2 for each of the years being appealed. Some examples
of acceptable documents that show the property was occupied as the principal residence of the owner for the year(s) in question are:
A.
Both sides of your driver’s license with property address.
B.
Your voter’s registration record.
C.
A cancelled check showing the property address. (Black out any information other than the address and date the check was written.)
D.
A statement from a bank, charge account, medical billing, utility bills, etc. (Only the portion showing your mailing address and date
need be submitted.)
E.
Property tax bill with the property as the mailing address.
F.
Copy of your passport.
G.
Your income tax return showing the mailing address. (Black out any sensitive information.)
H.
An insurance policy. (Only the portion showing your mailing address and date need be submitted.)
NOTE: This is not an all inclusive list and no one item is particularly controlling.
6.
What is acceptable verification of ownership?
Warranty deed; quit claim deed; land contract; life estate; life lease (holder of the life lease must have been the prior owner); beneficiary of
a will or trust; or a grantor who has placed the property in a revocable trust or a qualified personal residence trust. All documents verifying
ownership must either be notarized and/or recorded.
7.
How do I know if my appeal has been received?
You will receive a letter confirming that your appeal has been received by the Department.
8.
How long will the appeal process take?
It may take several months to complete the review of the appeal.
9.
Who is reviewing my appeal?
The first step in the review process involves the PRE staff of the Department. They will review your appeal information to determine if
sufficient evidence exists to reinstate the exemption or partial exemption. If it is found that the exemption should be reinstated, you, the
county treasurer, and the local unit assessor will be notified, in writing, that the exemption for the given years has been reinstated. If we
are unable to resolve the matter based on the information you supply, we will forward your file to the Hearings Division. The Hearings
Division will schedule an informal conference and will notify you of the date, time and place.
10.
How will I know the result of the appeal review by the PRE staff, if they determine that sufficient evidence
was provided to rule in my favor?
If your documentation shows the property was occupied as the owner’s principal residence, the denial will be removed for the year(s) in
question. You, the county treasurer and the local unit assessor will be notified, in writing, that the exemption has been reinstated.
(Over)

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