Question:
How does the Homeowner's Principal Residence Exemption differ from the State's Homestead Property Tax Credit?
Answer:
The Homeowner's Principal Residence Exemption reduces your local tax bill directly. In addition, the State of Michigan helps you pay some of those property taxes if you are a qualified Michigan homeowner or renter. The credit is income based and is designed to give the greatest relief to senior citizens, disabled or blind persons and disabled veterans as well as the surviving spouse of a veteran. You must apply for the Credit annually (MI-1040-CR) to receive a refund.