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Appeal Process Regarding a Principal Residence Exemption (PRE) Denial

The Michigan Department of Treasury (Department) conducts yearly audits in accordance with Section 8 of Michigan Compiled Law 211.7cc to ensure that only persons eligible for a PRE receive the exemption. During the audit process, the Department sends a PRE Audit Letter and a PRE Audit Questionnaire, Form 4632 regarding questionable PREs to obtain additional information on property and/or owner(s). A PRE denial notice is issued by the Department when either no response to the Audit Letter and Questionnaire is received or the response received does not verify that the property was the owner(s) principal residence for the year(s) being denied.

An owner that receives a PRE denial notice may appeal in writing to the Department within 35 days of the date on the denial notice. The owner should include a copy of the denial notice, state that an informal conference is requested, list the reasons for disagreeing with the denial and provide documentation showing the property was occupied by the owner as his or her principal residence for each year denied. The denial of the PRE may require you to pay additional taxes and interest for the years you improperly received the exemption benefits, up to four years, even if you no longer own the property. The frequently asked questions sheet regarding PRE Denials by the Department of Treasury provides additional information regarding the denial and appeal process.

It is important to note that PRE denial notices issued by the county (Form 4075, Notice of Denial of Principal Residence Exemption) or local unit assessor (Form 2742, Notice of Denial of Principal Residence Exemption) must be appealed to the Michigan Tax Tribunal within 35 days not to the Department. The Department only hears appeals resulting from denial notices issued by the Department. For more information, see PRE Appeal Authority Table