A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills. Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims. To qualify for a PRE, a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.

Poverty Exemptions:

Disabled Veterans Exemption Eligibility Requirements:
In order to be eligible for the exemption, the disabled veteran must have been honorably
discharged from the armed forces of the United States. They must be a Michigan resident.
Additionally, they must meet one of the following criteria:
(a) Has been determined by the United States department of veterans’ affairs to be
permanently and totally disabled as a result of military service and entitled to veterans’
benefits at the 100% rate.
(b) Has a certificate from the United States veterans’ administration, or its successors,
certifying that he or she is receiving or has received pecuniary assistance due to disability
for specially adapted housing.
(c) Has been rated by the United States department of veterans’ affairs as individually
unemployable.
The unremarried surviving spouse of the disable veteran is eligible for the exemption based
upon the eligibility of their spouse; therefore the spouse must also be a Michigan resident.
The exemption will continue only as long as the surviving spouse remains unremarried.
How is a determination made that the disabled veteran is permanently and totally disabled
as a result of military service and entitled to veterans’ benefits at the 100% rate?
The Veterans’ Administration defines a service connected disability as a disability related
to an injury or disease that developed during or was aggravated while on active duty or
active duty for training.[1] The Veterans Administration Schedule for Rating Disabilities
is used to assess the medical conditions and illnesses incurred or aggravated during the
veteran's military service and a percentage rating from 0% to 100% is assigned based on
the severity of the disability.
Individuals filing the affidavit for the exemption under criteria a) must provide a copy of
the letter from the Veterans’ Administration indicating they have a 100% service
connected disability and are entitled to receive benefits.
Note: The Act does not require the disabled veteran to have already received the benefit,
it only requires that they have been determined to be permanently and totally disabled as
a result of military service and entitled to veterans’ benefits at the 100% rate.
What is assistance for specially adapted housing?
The Veterans’ Administration provides veterans with certain permanent and total service-
connected disabilities financial assistance to purchase or construct an adapted home or
modify an existing home to accommodate a disability. There are two grant programs:
specially adapted housing grant (SAH) and the special housing adaptation grant
(SHA).[2] The State Tax Commission has determined that receipt of either grant would qualify an
individual for the exemption under criteria b).
Individuals filing the affidavit for the exemption under criteria b) must provide a copy of
the certificate from the Veterans’ Administration indicating they are receiving or have
received pecuniary assistance due to disability for specially adapted housing.
What does individually unemployable mean?
Individual unemployability is part of the Veterans’ Administration disability
compensation program. Under this program, veterans may receive compensation at the
100% rate even though their service connected disability is not rated at 100%.[3]
In order to be eligible a veteran must prove they are unable to maintain substantially
gainful employment as a result of their service connected disability. In addition they must
have one service connected disability rated at 60% or more or two or more service
connected disabilities with at least one rated at 40% or more with a combined rating of
70% or more.[4]
Individuals filing the affidavit for the exemption under criteria c) must provide a copy of
the letter from the Veterans’ Administration indicating they are individually
unemployable.
Is there an asset test and/or means test to determine eligibility?
No, there is no asset test and/or means test to determine eligibility. In order to be eligible
the disabled veteran must meet the requirements of Public Act 161 of 2013 regardless of
their income or the value of their home.