Earlier this week the House Tax Policy Committee passed House Bill 4810, a bill that tweaks the principal residence exemption (PRE) for certain seniors in assisted living.

Public Act 324 of 2012 amended the General Property Tax Act to allow a person who previously occupied a property as a principal residence but now resides in a nursing home or an assisted living facility to retain the exemption on property previously exempt as the principal residence if the owner “manifests an intent to return to that property” by satisfying all of the following conditions: (1) the owner continues to own the property while residing in the nursing home or assisted living facility; (2) the owner has not established a new principal residence; (3) the owner maintains or provides for the maintenance of the property; and (4) the property is not occupied, is not for sale, is not leased, and is not used for any business or commercial purpose.

House Bill 4810 would amend this provision to delete the requirement that the property not be for sale. The amendment would be retroactive and effective for taxes levied after December 31, 2012.

The bill is on the House floor awaiting approval from the full chamber.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at [email protected]