Instructions for Form 2602
This form enables people who are selling or converting their home to another use to rescind their exemption. It also enables people to change the percentage that they occupy as their principal residence.
Interest & Penalty
If it is determined that you claimed property that is not your principal residence, you may be subject to the additional tax plus penalty and interest as determined under the Property Tax Act.
Lines not listed here are explained on the form.
- Line 1
Property is identified with a property tax identification number. This number will be found on your tax bill and on your property tax assessment notice. Enter this number in the space indicated. If you cannot find this number, call your township or city assessor. Submit a separate Form 2602 for each exemption being rescinded. Your property number is vital; without it, your township or city cannot adjust your property taxes accurately.
- Lines 2 through 5
Enter the complete property address of the exemption you are rescinding. Check the appropriate box for the city or township. If you live in a village, list the township in which the principal residence is located.
- Lines 6 through 10
Enter the name, Social Security Number(s) and daytime telephone number of the legal owner(s). Do not include information for a co-owner who does not occupy the principal residence. Note: The request for the Social Security Number is authorized under section 42 USC 405 (c) (2) (C) (i). It is used by the Department of Treasury to verify tax exemption claims and to deter fraudulent filings. Any use of the number by closing agents or local units of government is illegal and subject to penalty.
Change an Existing Exemption
You are required to rescind a principal residence exemption when you no longer own and occupy the property as your principal residence. The exemption will be removed on December 31st of the year you rescind the exemption.
- Line 11
Check the box(es) that most accurately reflects the reason you are rescinding your exemption.
- Line 12
If you own and live in a multiple-unit or multi-purpose property (e.g. a duplex or apartment building, or a storefront with an upstairs flat), you can claim an exemption only for the portion that you use as your principal residence. Calculate your portion by dividing the floor area of your principal residence by the floor area of the entire building. If the parcel of property you are claiming has more than one home on it, you must determine the percentage that you own and occupy as your principal residence. A second residence on the same property (e.g. a mobile home or second house), is not part of your principal residence even if it is not rented to another person. Your local assessor can tell you the assessed value of each residence to help you determine the percentage that is your principal residence. If you rent part of your home to another person, you may have to prorate your exemption. If your home is a single-family dwelling and the renters enter through a common door of your living area to get to their rooms, you may claim 100% exemption if less than 50% of your home is rented to others who use it as a residence. However, if part of the home was converted to an apartment with a separate entrance, you must calculate the percentage that is your principal residence, by dividing the floor area of your principal residence by the floor area of the entire building.
- Line 13
Enter the date that the change(s) indicated on lines 11 and 12 above became effective.
- Line 14
Select the appropriate box.
- Line 15
If this recision is being done because of a change in ownership, list the new owner and, if applicable, co-owner on the appropriate lines.
Sign and date the form. Enter your mailing address if it is different from the address on line 3.
Mail your completed form to the township or city assessor in which the property is located. This address may be on your most recent tax bill or assessment notice. Do not send this form directly to the Department of Treasury. If you have any questions, visit the Michigan Department of Treasury or call 800-827-4000.