Michigan Home Sellers Can Have 2 Primary Residences For Tax Purposes

Michigan homeowners need to be aware of the law that exists to provide tax savings to anyone who has a home for sale but has purchased another home. You can claim both properties as your Principle Residence and receive Homestead millage. This law went into effect for homeowners in 2008, as relief for Michigan home sellers who have moved and have not been able to sell their home in Michigan.
The law is called PA 96 of 2008, and it is a HUGE tax break for people in Michigan that expands the Principal Residence Exemption on unsold homes. If you live in Michigan, and own a home you are allowed to claim one house for a primary homestead exemption. Non-Homestead Tax millage is 18 mills higher than Homestead that is approximately 30% higher.
Now the legislature has allowed you keep two exemptions "if" you move from one home in Michigan to another one and are still trying to sell the previous home. The home must be vacant and for sale. You can claim this exemption for a maximum of 3 years by filing a Conditional Rescission of Principal Residence Exemption form.