As you know, PA 96 of 2008 created a new tax break for people who have moved to a new principal residence but have been unable to sell their previous principal residence. Under the new law, the owner is allowed to maintain a Principal Residence Exemption (PRE) on their former home for up to 3 years if the home is vacant and for sale. This new law expands the Principal Residence Exemption to unsold homes, essentially allowing for two exemptions where homebuyers have their original property on the market but are now living in their new home elsewhere in the state.

To claim this tax break, the owner must file a Conditional Rescission of Principal Residence Exemption Form #4640 with their local assessor. Unfortunately, the bill was not signed until April of this year and that left a narrow window for taxpayers to file before the May 1 deadline in order to claim this benefit for 2008.

However, an amendment was inserted into Public Act 198 of 2008, allowing any homeowner who missed the May 1st deadline for the 2008 tax year to now file an appeal with their community's July or December 2008 Board of Review. This is a tremendous victory and offers property tax relief for homeowners in Michigan.

Individuals should contact local assessors for meeting dates and additional information. Traditionally, the July board of review has met the Tuesday following the third Monday in July (July 22 this year). A change in the law (PA 122 of 2008) allows communities to schedule their board of review any time that week. While most communities will meet on July 22, taxpayers should contact their local government to be sure they know when the board of review meets in order to submit Form #4640 to the board of review for consideration.

The ability to appeal to the board of review is for 2008 only. Homeowners will need to apply to keep their PRE by December 31 of the previous year. Homeowners can already file the form for 2009 with their local unit of government. For additional information, please check out www.Michigan.gov/treasury.

Download form here: http://www.michigan.gov/documents/taxes/4640_231633_7.pdf

Ray Spitler, GRI, e-PRo, Certified Short Sale Expert
www.MBShomes.com
(989)607-6252

On March 27, 2008, the Michigan Senate took action in passing legislation to stimulate the housing industry in Michigan. The Senate Economic Stimulus Plan gives a boost to the housing industry by providing property tax relief, while putting more money back into the homeowner's pocket. It does so by offering a window for homebuyers to avoid the pop-up tax now and for the duration of their homeownership.

The Senate package (SB 1065, 790, 791, HB 4215, ) alleviates the issue of homeowners who continue to lose equity in their homes, while allowing potential homebuyers to move forward with the dream of homeownership without financial penalties. Senator Jud Gilbert (R-Algonac) and Senator Roger Kahn (R-Saginaw Twp) spoke on the Senate floor today and stressed the importance of a "pop up" tax moratorium in order to boost Michigan's housing market while spurring the economy.

Details of the legislation include:

791 (Kahn substitute) offers immediate substantial relief for Michigan taxpayers who purchase a home within the next 33 months.

SB 1065 (Cassis) - Increases the Homestead Property Tax Credit from $1200 to $1300 to those who qualify 790 (Pappageorge) - Increases the income thresholds of the Homestead Property Tax Credit by $10,000

4215 (Gaffney) Extends principal residence exemption to unsold homes

You may recall that a similar package was introduced in the House last year, which implemented an 18-month moratorium on the "pop up". The Senate plan creates a 33-month window. It works by providing an income tax credit to reimburse homebuyers for any "pop up". Those homeowners with no income tax liability would still receive a check from the state for that "pop up" amount. While the House and Senate plans differ in their mechanics, we are confident that both sides will come together and work to provide aid to homeowners and homebuyers. This will give Michigan's economy a much needed shot in the arm. This is a historic time for homebuyers, and it's a great time to buy.

Yesterday, Jennifer Granholm signed a bill allowing two homestead exemptions for homeowners who have already moved into a new home and their previous home is currently listed for sale.

This is a huge benefit for owners of these vacant homes that have not yet sold. Normally, these properties would be taxed at the non-homestead rate witch is about 20 mils higher than those with the homestead exemption.

Requirements: Home cannot be rented, it must be vacant, it must have been used as primary residence.

If you have a home that may qualify, I urge you to check with your city or township office before April 30th. After May 1st, it may be too late to change the tax status for 2008 taxes coming this July.

Best Regards,

 Ray Spitler, GRI,e-pro
Keller Williams Realty- Saginaw, Midland, Bay City Michigan
www.MBShomes.com
(989)607-6252

Ray Spitler, GRI, e-Pro       (989)737-8042
Keller Williams Realty- Saginaw, Midland, Bay City Michigan
Website: http://MBShomes.com

Information Center       Automated Updates

**If you know anyone who is considering buying or selling real estate, your referral is the greatest compliment I can receive. Thank you!

Heather,

I have many resources for the sale and rental market in east or any other part of Saginaw Michigan. I post rental vacancies at http://SaginawRentals.com for Clients and friends who visit my website. I have also been a member of the Saginaw Landlords association since 1993.

Feel free to check my website at http://MBShomes.com for any listing in Saginaw, Midland or Bay City Michigan.

AUCTION IN PROGRESS! Ends August 1, 2007
THIS PROPERTY IS UP FOR AUCTION NOW
BID ON THIS HOME AT RealtyBid.com.

Looking for a large home with lots of character? Don't miss this 1920's home with most of the original woodwork in great condition. Original leaded glass french doors to foyer, formal dining room and parlor. Wood fireplace in large living room. Full bath on 1st and 2nd floor. Owner paid $73,000, 3 years ago and spent over $22,000 in recent improvements to comply with Adult Foster Care Licensing regulations. New roof, firewall in basement, fire alarm and lighting system, security system. Newer high-efficiency furnace and water heater. Move-in condition. What a deal! Buyer Agent commision paid.

1902 N Bond St, Saginaw MI   listed at $69,900 3 Bed 2 Bath 1878 Sq Ft

More Info and pictures

contact: Ray Spitler, GRI, e-Pro
Keller Williams Realty- Saginaw, Midland, Bay City Michigan
http://MBShomes.com
(989)607-6252

As we look forward to 2007, I am encouraged by a strong 4th quarter finish of 2006 and all signs point to a continued increase in market activity into the new year.

I will be happy to provide market comparisons on a monthly basis to the previous year for anyone requestion it. The 200k+ market has been almost non-existant until recently. We have seen a significant increase in showings and inquiries in the $250k-$350k price range. Let's hope that the market continues its turnaround!

If you have been thinking of selling your home, now is a good time to get recommendations for improvements, clean up tips, and suggestions on what to do now to get ready for what could be a hot spring market. Visit http://www.mbshomes.com/ for tips on Selling your home in Saginaw, Midland or Bay City Michigan.

On the other hand, it is no secret that there is also a significant amount of foreclosed homes on the market, and more are appearing every day. If anyone is interested in this market, please send an email to foreclosures@RaySpitler.com or visit: http://www.mbshomes.com/ for updates on listings or information.