Linda owns a home in Flint with a taxable value of $75,000. The total millage rate in her district is 40 mills. Linda has an active Principal Residence Exemption (PRE). The school operating millage included in the 40 mills is 18 mills. What taxable value amount is subject to the school operating millage?
Correct Answer
D) $0, because the PRE exempts the entire taxable value from school operating mills
Under MCL 211.7cc, the Principal Residence Exemption (PRE) exempts the entire taxable value of the qualifying principal residence from school operating mills — up to 18 mills. This means that for the school operating portion (18 mills), the taxable value subject to those mills is $0. Linda's home is fully exempt from the 18 school operating mills. She would still pay taxes on the remaining 22 mills (40 total − 18 school operating = 22 mills) applied to the full $75,000 taxable value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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