Which type of property is exempt from the 18 mills school property tax?

The exemption from the 18 mills school property tax applies primarily to homestead property. In Michigan, homestead property refers to residential properties that a homeowner occupies as their principal residence. The rationale behind this exemption is to alleviate the tax burden on homeowners, making housing more affordable and promoting stability in neighborhoods.

Homestead properties benefit from various tax advantages, including exemptions that help reduce school operating tax rates, which is particularly important in supporting educational funding while recognizing homeowners' contributions to their communities.

Understanding the different classifications of property is crucial because other types of properties—such as vacant land, commercial, and industrial properties—do not receive this same tax relief. They remain subject to the 18 mills school property tax, adding to their overall tax burden. This distinction is vital for both assessors and property owners when evaluating tax responsibilities and the potential financial implications of owning different types of properties.