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FAQ
Service Fee/PILOT Housing
What is Service Fee/PILOT (payment in lieu of taxes) housing?
Service Fee/PILOT housing is an agreement between a municipality and a property owner (private or public) to pay a service fee instead of property taxes. Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid. Often, Service Fee/PILOT housing is low income or senior citizen housing that can include an apartment or the rental of a single family home.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes.

You can find out if a property is subject to Service Fee/PILOT housing by contacting your city/township/county office.
How do I find out if my rental property is Service Fee/PILOT (payment in lieu of taxes) housing?
You can find out if a property is subject to Service Fee/PILOT housing by contacting your city/township/county office. Often, Service Fee/PILOT Housing is low income or senior citizen housing that can include apartment occupancy or the rental of a single family home.
Why am I not allowed to use the 20% (standard amount) of my annual rent to calculate my homestead property tax credit if I live in Service Fee/PILOT (payment in lieu of taxes) housing?
Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid.

Service Fee/PILOT Housing is a program with an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.
Why did I receive a reduced Homestead Property Tax Credit (or a notice of denial) due to residing in Service Fee/PILOT (payment in lieu of taxes) housing?

Upon review of your homestead property tax credit, it was determined the address from which you filed is Service Fee/PILOT (payment in lieu of taxes) housing. Your return was filed using 20% of your total rent to calculate your property tax credit.

Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid.

Service Fee/PILOT housing is a program where there is an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.

If 10% of your eligible rent does not exceed 3.5% of your total household resources/household income, you do not qualify for a homestead property tax credit.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes. You can find out if a property is subject to Service Fee/PILOT housing by contacting the city/township/county office.