How does the Principal Residence Exemption affect the taxes I claim on my homestead property tax credit?
The Principal Residence Exemption may lower your property taxes. If you own and occupy your home and have not filed Principal Residence Exemption affidavit with your local assessor, all of your property is subject to school operating tax.
If you have not filed an affidavit and your principal residence exemption is 0%, you may include school operating millage in your homestead property tax credit claim. You may also include the 1% collection fee charged by your city or township.
If your local assessor reduces your property taxes for a prior year's liability through the Board of Review, any refund issued must deducted from the taxes eligible for credit for the year in which you received the refund.