Principal Residence Exemption (PRE) Audit

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The City of Detroit Office of the Assessor is conducting an audit to ensure that only persons eligible for a Principal Residence Exemption (PRE) receive the exemption on the property. This audit period covers the 2020, 2021, 2022, and 2023 tax years.

What is a Principal Residence Exemption? (PRE)

  1. Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims (formerly known as the Homestead Exemption).
  2. A PRE exempts a principal residence from the tax levied by a local school district for school operating purposes, up to 18 mills.
  3. To qualify for a PRE on a parcel of land, a person must be a Michigan resident who owns and occupies the property as a principal residence.  This also includes unoccupied property that’s adjoining or contiguous to the home or dwelling owned and occupied by the owner.

What is the Purpose of the PRE Audit?

  1. The PRE Audit is being conducted at the local level, to help determine all properties located within the City of Detroit with eligible or ineligible PRE’s
  2. Reduce the amount of State PRE-Denials (roughly 3,000+ yearly)
  3. Improve the City's taxpayer database
  4. PRE audits are to be conducted at the local level

 

Frequently Asked Questions:

  1. What will happen if the taxpayer fails to respond to the notice?
    • Failure to respond will result in an automatic denial of the PRE
  2. How will the taxpayer be notified of their decision? 
    • The taxpayer will receive a decision letter in the mail
  3. What are the ways documents can be submitted?
    • In Person:  DTSC Room 130
    • By Mail: 2 Woodward Ave, Ste. 804, Detroit, MI. 48226
    • Email:  [email protected]