Michigan Form 2368 is the Principal Residence Exemption (PRE) Affidavit you file with your local city or township assessor to strip the 18-mill school operating tax from your primary home.1Michigan Legislature. Michigan Compiled Laws 380.1211 – Mills Levied for School Operating Purposes Complete every line, sign under penalty of perjury, and get it to the assessor by June 1 for the exemption to apply to the summer tax levy, or by November 1 for the winter levy. The form goes to your local assessor, not to the Michigan Department of Treasury.
Who Can Claim the Exemption
You qualify if you own the property and occupy it as your principal residence, meaning the one place you consider your true, fixed, and permanent home and the place you always intend to return to when you’re away.2Michigan Legislature. Michigan Compiled Laws 211.7cc – Principal Residence Exemption From Tax Levied by Local School District for School Operating Purposes Only one PRE at a time. A married couple filing a joint Michigan return still gets only one exemption between them.
You cannot hold a similar homestead exemption, credit, or deduction in another state, and you cannot file an income tax return as a resident of another state. Break either rule and you owe a $500 penalty plus the back taxes. Active-duty military stationed in Michigan who keep their principal residence here are the exception.
You don’t need a traditional deed. Land contract buyers, life estate holders, and cooperative housing members can all claim the PRE if they occupy the property as their principal residence. If you’re the grantor of a revocable trust or a qualified personal residence trust that holds the home, you can claim it too; a trust itself is not an eligible owner, but beneficiaries with ownership rights under the trust or will may qualify.3State of Michigan. Ownership Requirement
Filling Out Form 2368 Line by Line
Download a blank affidavit from the Michigan Department of Treasury website or pick one up at the assessor’s office. The instructions warn that a blank line can trigger a denial, so complete every field.4Michigan Department of Treasury. Principal Residence Exemption (PRE) Affidavit
Line 1 – Property Tax Identification Number
Copy the parcel number exactly as it appears on your most recent tax bill or assessment notice. One wrong digit sends the exemption to the wrong property, and the assessor will not catch the mistake for you.
Lines 2 Through 4 – Local Unit, County, and Address
Enter the township or city name, check the correct box for which one, name the county, and write the full street address of the property.
Line 6 – Last Four Digits of Your Social Security Number
Only the last four digits, not your full SSN. Treasury uses them to confirm eligibility and to spot duplicate claims across the state.
Line 11 – Date You Owned and Occupied the Property
Put the date you actually moved in and started living there as your principal residence. That may not be your closing date. The assessor uses this date to decide when your exemption starts, so it needs to be accurate.
Line 12 – Cooperative Housing
Check this line if you live in a cooperative housing unit.
Line 13 – Percentage of Exemption Claimed
Enter 100% if you use the whole property as your residence. If part is rented out or used for a business, such as a duplex where you live in one unit, you can only claim the portion you occupy. Ask your assessor to help you calculate the percentage for a mixed-use property.
Lines 20 and 21 – Signatures
Form 2368 is not notarized. You sign a certification under penalty of perjury that you own and occupy the property as your principal residence and hold no similar exemption in another state. Every owner on the deed or title must sign: Line 20 for the primary owner, Line 21 for a co-owner. A missing required signature will bounce the form back.
Where and When to File
File the completed affidavit with the assessor in the city or township where the property sits. Do not mail it to Lansing. Most assessor offices take Form 2368 by mail or in person, and some municipalities offer online submission.
Two deadlines control when the exemption takes effect:
- File by June 1 and the exemption applies to that year’s summer levy and every levy after it.
- File by November 1 and the exemption applies starting with the winter levy and every levy after it.
The deadlines are firm. Missing June 1 by one day pushes your relief to the winter levy at the earliest. Keep proof of submission, whether that’s a date-stamped copy from the counter or a certified mail receipt, in case a question comes up later.
If You Miss the Deadline
A missed June 1 or November 1 doesn’t automatically cost you a year. The July and December Boards of Review can grant a PRE that was not previously denied for the current year and the three immediately preceding years.5Michigan Department of Treasury. Bulletin No. 21 of 2020 – July and December Boards of Review “Not previously denied” is the key phrase. If the assessor already rejected your claim, the Board of Review route is closed and you’d need to use the formal appeal process instead.
The July board generally meets the Tuesday after the third Monday in July, and the December board meets the Tuesday after the second Monday in December.6Michigan Legislature. Michigan Compiled Laws 211.53b – Qualified Error Call your assessor for the exact date and any paperwork the board wants to see.
What Happens After You File
The assessor reviews the affidavit and confirms the property and ownership meet the requirements. If it clears, the exemption goes on the local tax rolls and the 18-mill school operating tax comes off your next bill.
If the assessor decides you don’t qualify, you’ll get a written denial explaining why. From that point you have 35 days to appeal to the Michigan Tax Tribunal’s Residential and Small Claims Division.7State of Michigan. Denial of a Principal Residence Exemption and Appeals The appeal uses a petition titled “Petition for Denial of Exemption for Principal Residence/Qualified Agricultural,” and a $25 filing fee may apply. Late appeals get dismissed, so don’t wait on a denial notice.
If you and the assessor both agree the denial was wrong, you can file a joint “Stipulation for Entry of Consent Judgment” with the Tribunal and skip a full hearing.
When You Move Out
Once the property stops being your principal residence, you’re required to file Form 2602 (Request to Rescind Principal Residence Exemption) with the local assessor.8Michigan Department of Treasury. Request to Rescind Principal Residence Exemption The exemption comes off as of December 31 of the year you file the rescission. Leaving an exemption in place on a home you no longer occupy exposes you to penalties, back taxes, and interest.
If you’ve already moved into a new principal residence but your old home is on the market, Form 4640 (Conditional Rescission) lets you keep the PRE on the empty property for up to three years while it sells.9Michigan Department of Treasury. Conditional Rescission of Principal Residence Exemption (PRE) All four of the following must stay true the entire time:
- The property is not occupied.
- The property is actively listed for sale.
- The property is not leased or rented.
- The property is not used for any business or commercial purpose.
File Form 4640 for the first year by June 1 or November 1, the same deadlines that apply to a regular PRE filing. To keep the exemption for years two and three, resubmit the form each year by December 31 of the year before the exemption year. Attach proof the property is for sale (an MLS listing works), a current tax bill, and a completed Form 2368 for your new principal residence.
Active-Duty Military Exception
Active-duty military stationed away from their Michigan home can keep the PRE even while the property is rented, an allowance no one else gets. The protection runs up to three years from the date the home is first rented or leased.10Michigan Department of Treasury. Principal Residence Exemption (PRE) Active Duty Military Affidavit
To claim it, file Form 4660 (PRE Active Duty Military Affidavit) with the local assessor by May 1 of the first year you need it, and attach a copy of your active-duty orders. The form has you attest that you intend to return to the property and occupy it as your principal residence when active duty ends. The May 1 deadline is a month earlier than the June 1 date for a standard PRE filing, so plan around it if orders or a deployment fall in the spring.