Sixty One Counties Join Homestead Enforcement Effort

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October 13, 2003

State Treasurer Jay B. Rising today announced that dozens of County Treasurers and Equalization Directors are participating in an initiative designed to identify and deny improperly claimed Michigan Homestead (Principal Residence) Exemptions.

A new law enhances the Department of Treasury’s process of auditing Homestead Exemptions and gives local assessors, equalization directors and county treasurers authority to deny exemptions, if their respective county opted into the program. The Department of Treasury will be responsible for audits in counties that choose not to participate in the program.

"I am pleased that nearly three-quarters of Michigan’s counties have agreed to participate in this initiative," said Treasurer Rising. "It is estimated that our efforts will increase local K-12 school revenues statewide by as much as $50 million this fiscal year alone."

Under PA 105, persons who are currently claiming an improper exemption have until November 1, 2003, to come forward and rescind their homestead affidavit. This amnesty provision allows individuals to pay back property taxes within 30 days, and avoid interest or penalties. After November 1, 2003, interest of 1.25% per month, and applicable local penalties will be added to the tax bill. PA 105 also clearly states that persons claiming a homestead or similar exemption in another state or persons who file a Michigan income tax return as a non-resident do not qualify for a state Homestead Exemption.

As a result of Proposal A, persons who own and occupy their home as their Principal Residence may claim an exemption from the 18 mills levied by local school districts for operating purposes. However, only one Homestead Exemption can rightfully be claimed. As a result of recent pilot projects, it is estimated that between one and one and a half percent of all Homestead Exemptions around the state is wrongfully claimed.

"Each of these incorrectly claimed exemptions is taking money away from local school districts and places a serious financial burden on the state, because the State School Aid Fund (SAF) makes up the difference in each district’s per pupil foundation allowance," Rising explained. "The Department of Treasury and the participating counties will vigorously pursue wrongly claimed exemptions in order to recoup those revenues."

Below is a complete list of counties that will participate in the Homestead Exemption enforcement effort. For more information, log onto Treasury’s web site at www.michigan.gov/treasury.

Opt-in Counties

Alcona, Alger, Allegan, Antrim, Arenac, Baraga, Bay, Benzie, Berrien, Calhoun, Cass, Charlevoix, Cheboygan, Chippewa, Crawford, Delta, Emmet, Genesee, Gladwin, Gogebic, Grand, Gratiot, Hillsdale, Houghton, Ingham, Ionia, Iron, Isabella, Jackson, Kalamazoo, Kalkaska, Kent, Lapeer, Leelanau, Lenawee, Marquette, Mecosta, Menominee, Midland, Missaukee, Montcalm, Montmorency, Muskegon, Newaygo, Oakland, Ogemaw, Ontonagon, Osceola, Oscoda, Otsego, Ottawa, Presque Isle, Roscommon, Saginaw, Sanilac, Schoolcraft, St. Joseph, Van Buren, Washtenaw, Wayne, Wexford.