Michigan Senate OKs letting heirs qualify for tax exemption
LANSING, Mich. (AP) - The Michigan Senate has voted to provide property tax relief to people who inherit a home after the death of a close relative.
The legislation approved unanimously Thursday would let heirs retain the principal residence exemption for up to two years. Under current law, the principal exemption from school operating taxes expires at the end of the year in which the owner dies.
The bill's supporters say current law makes it hard on a decedent's estate or heirs.
Under the legislation headed to the House, the property would have to be for sale and couldn't be occupied, leased or used for any business purpose.
The Senate Fiscal Agency says the bill would cost the state school aid fund an "unknown and likely negligible amount."