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How does the Principal Residence Exemption (PRE) affect the taxes I claim on my homestead property tax credit?

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. If your city or township charges a 1% administration (admin) fee, you may include it with your total taxes levied.

What is Principle Residence Exemption?