Overview
This section explores the process to request a principal residence exemption as a result of qualified error under MCL 211.7cc. It examines statutory definitions, case law interpretations, and practical implications for property owners, assessors, and legal practitioners.
The qualified error principal residence exemption request process is governed by MCL 211.7cc(20) and allows an owner to request a principal residence exemption in any year before the 3 immediately preceding tax years for which the exemption was not on the tax roll as a result of a qualified error on the part of the assessor. The Michigan Department of Treasury has exclusive authority to grant such requests under limited circumstances.
Under MCL 211.53b, a qualified error for principal residence exemption purposes includes a clerical error in assessment figures, tax rate, or computation, a mutual mistake of fact, or an error regarding the property’s taxable status. A clerical error is a transpositional, typographical, or mathematical mistake as defined in International Place Apartments v Ypsilanti Township. A mutual mistake of fact is an erroneous belief shared by both parties about a material fact affecting the transaction, as defined in Ford Motor Co v City of Woodhaven and clarified in Briggs Tax Service v Detroit Public Schools, which requires the mistake to occur only between the assessor and the taxpayer.
To begin the request process, the property owner must complete and submit a Request for Principal Residence Exemption – Qualified Error (Form 5101) to the Michigan Department of Treasury. The submission must include documentation proving ownership and occupancy as a principal residence, confirmation that no disqualifying factors under MCL 211.7cc(2) and (3) apply, and evidence that a qualified error as defined in MCL 211.53b caused the exemption to be missing from the tax roll. The taxpayer bears the responsibility to demonstrate eligibility and establish that the omission of the principal residence exemption resulted from a qualified error rather than their own failure to comply with statutory requirements.
Upon receipt, the Michigan Department of Treasury reviews the submission and issues a written determination to approve or deny the request. If the Michigan Department of Treasury approves the request, the owner and county treasurer receives a Notice of Rebate letter, and the county treasurer issues a refund for the overpaid taxes within 30 days, without interest. If the request is denied, the owner receives a Notice of Rebate Denial letter which may appeal to the Michigan Tax Tribunal within 35 days of the decision.
The Request for Principal Residence Exemption – Qualified Error (Form 5101) and related forms can be obtained from closing agents, local assessors or online at www.michigan.gov/PRE . Closing agents are not legally liable if they fail to provide or file these forms. (MCL 211.7cc(18)).
Qualified Error Principal Residence Exemption Request: Frequently Asked Questions
- Is there a specific form for requesting a principal residence exemption due to a qualified error by the assessor?
Yes. The owner must submit a completed Request for Principal Residence Exemption-Qualified Error (Form 5101) with the Michigan Department of Treasury.
- Where can an owner obtain a Request for Principal Residence Exemption – Qualified Error (Form 5101)?
(Form 5101 can be obtained from closing agents, local assessors or online at www.michigan.gov/PRE. Closing agents are not legally liable if they fail to provide or file these forms.
- Is there a fee that an owner must pay when submitting the Request for Principal Residence Exemption – Qualified Error (Form 5101)?
No fee is required.
- What other documents must be submitted with the completed Request for Principal Residence Exemption – Qualified Error (Form 5101)?
The submission must include documentation proving ownership and occupancy as a principal residence, confirmation that no disqualifying factors under MCL 211.7cc(2) and (3) apply, and evidence that a qualified error as defined in MCL 211.53b caused the exemption to be missing from the tax roll.
- What documents indicate that a person is occupying the property as a principal residence?
The burden of proof is on the owner, who must prove actual occupancy through documentary evidence. Mere statements of intent are insufficient. Indicators of occupancy may include Driver’s license, voter registration, tax returns, utility bills, memberships, and other documents showing the property as the owner’s principal residence.
- Who will review the submitted Request for Principal Residence Exemption – Qualified Error (Form 5101)?
The Michigan Department of Treasury Principal Residence Exemption Unit will review the submitted Form 5101 and any supporting documents.
- How will the Michigan Department of Treasury’s convey review results?
If the Michigan Department of Treasury approves the request, the owner and county treasurer receives a Notice of Rebate letter, and the county treasurer issues a refund for the overpaid taxes within 30 days, without interest. If the request is denied, the owner receives a Notice of Rebate Denial letter which may be appealed to the Michigan Tax Tribunal within 35 days of the decision.
- What tax years can the Michigan Department of Treasury grant a principal residence exemption that was not on the tax roll as a result of a qualified error on the part of the assessor?
Any tax year before the 3 immediately preceding tax years for which the exemption was not on the tax roll as a result of a qualified error on the part of the assessor.
- If the request is granted, who issues the refund?
The treasurer of the county where the property is located will issue a refund. A refund, including any interest paid by the owner, shall be paid to the owner within 30 days of the receipt of the notice. A refund shall be without interest.
- If the request is denied, can it be disputed?
Yes. An owner may appeal the denial of request to waive interest with the Michigan Tax Tribunal.
- How can a taxpayer initiate an appeal with the Michigan Tax Tribunal?
An appeal to the Michigan Tax Tribunal of a denial by an assessor or county or a final decision by the Michigan Department of Treasury can be initiated by the timely filing of a petition form, Petition for Denial of Exemption for Principal Residence/Qualified Agricultural, with the Michigan Tax Tribunal. A $25.00 filing fee may be required. The taxpayer can obtain a petition form online at www.michigan.gov/taxtrib.
- When must a taxpayer appeal the denial of the request to waive interest to the Michigan Tax Tribunal?
A taxpayer must appeal a denial or final decision to the Michigan Tax Tribunal’s Residential and Small Claims Division within 35 days of the denial or final decision. (MCL 211.7cc(13)). Late appeals may be dismissed.
- Where can a taxpayer appeal a Michigan Tax Tribunal decision?
For a Proposed Opinion and Judgment, file exceptions with the Michigan Tax Tribunal. For a Final Opinion and Judgment, file a Motion for Reconsideration with the Michigan Tax Tribunal or file a claim of appeal with the Michigan Court of Appeals.
- Where can a taxpayer learn more about the Michigan Tax Tribunal rules and appeal process?
A taxpayer can obtain more information about the Michigan Tax Tribunal rules and appeal process online at www.michigan.gov/taxtrib or may call the Michigan Tax Tribunal at 517-335- 9760.
- Chris filed the Principal Residence Exemption Affidavit (Form 2368) in 2000 with the assessor. The Assessor failed to process the affidavit and as a result the exemption was not on the tax roll. In 2026, Chris filed Principal Residence Exemption – Qualified Error (Form 5101) requesting the principal residence exemption for the 2000 through 2022 tax years. Should the Michigan Department of Treasury grant the qualified error principal exemption for those years?
Yes. Chris timely filed Form 2368 and met all requirements. The Assessor’s failure to apply the exemption is a qualified error. Therefore, the Department should grant the exemption for the years requested on Form 5101.
- Chris owned and occupied Blue Acre as his principal residence since the 2000 tax year. However, his closing statement preparer failed to file the Principal Residence Exemption Affidavit (Form 2368) with the Assessor. In 2026, Chris filed Principal Residence Exemption – Qualified Error (Form 5101) requesting the principal residence exemption for the 2000 through 2022 tax years. Should the Michigan Department of Treasury grant the qualified error principal exemption for those years?
No. The request for these tax years must be denied because no qualified error under MCL 211.53b occurred. The exemption was missing due to Chris’s failure to timely file Form 2368 with the Assessor as required by MCL 211.7cc(2). Without proper filing, Chris is not eligible for the exemption for those years. Closing agents are not legally liable if they fail to provide or file these forms. (MCL 211.7cc(18)).
