Holland Reporter

Home buyers who were looking forward to settling into their new place but were unable to move in before June 1 because of the governor's stay-at-home orders might receive property tax relief.

Sen. Roger Victory's proposed legislation would extend the time those homeowners who were kept from occupying their new home due to the governor's ban on nonessential construction have to file for the principal residence exemption (PRE) for the summer 2020 property tax levy.

“If signed into law, this measure will help the hardworking people of  Michigan affected by the COVID-19 pandemic and the governor’s punitive stay-at-home orders,” Victory said in a press release from the Michigan Senate GOP. “Because of the governor’s ban on all nonessential home construction, the completion of some new homes was delayed. This reform will allow impacted Michigan  homeowners to reduce their property taxes.”

The PRE exempts a homeowner's principal residence from the local school district operating tax up to 18 mills. To receive this exemption, the homeowner has to file an affidavit with the local government where their property is located. Exemptions usually have to be filed by June 1 for the summer tax levy, but Victory's bill would extend the deadline to June 30 for qualifying homeowners in the 2020 tax year only.

Bill analysis by the Senate Fiscal Agency finds that the bill would have a negative fiscal impact on the state and a minimal negative impact on local government simply because more people would be eligible to file for the exemption than would be allowed under ordinary circumstances. 

School operating revenue would be reduced, increasing costs to the School Aid Fund. Any negative impact would be limited to the 2020-2021 school year. Administrative costs to the Department of the Treasury and local governments would be covered by existing appropriations. .