What is the Homestead Exemption in Michigan?

The Homestead Exemption in Michigan is designed to provide a tax reduction for homeowners who occupy their property as their principal residence. This exemption helps to reduce the taxable value of the home, which in turn lowers the amount of property taxes owed. The intent of the Homestead Exemption is to alleviate the financial burden on homeowners by recognizing that their primary residence is essential for their living situation.

Homeowners must apply for this exemption and meet specific criteria to qualify, such as using the property as their primary residence and being the owner or being responsible for the property taxes. This encouragement to reside in and maintain homes contributes to community stability and promotes homeownership within the state.

Other options, such as a property tax increase for second homes or a fee for property assessment services, do not align with the purpose of the Homestead Exemption, which focuses on supporting primary residential homeowners. Additionally, a tax incentive for new businesses does not pertain to residential properties or homeowners, making it unrelated to the concept of the Homestead Exemption.