Principal Residence Exemption
Principal Residence Exemptions (fka Homestead Exemption), as defined by state law, is that portion of a dwelling or unit in a multiple-unit dwelling that is subject to taxation and is owned and occupied as a
Principal Residence Exemption (PDF) (Homestead Exemption form)
To qualify for the 18 mill exemption from school operating taxes (formerly the "Homestead Exemption"; now the Principal Residence Exemption), the property must be owned and occupied as a primary residence. On a property with a taxable value of $100,000, the exemption would be $1,800.
Commercial, industrial, multi-family and rental properties generally do not qualify for a Principal Residence Exemption.
Recently passed State Statutes increased the authority and responsibility of local assessors to audit Principal Residence Exemptions and determine their eligibility. For those found to be ineligible, the assessor shall deny the exemption for the current and three (3) previous years, including penalty and interest at 1.25% per month from the date the tax was originally due. Denials can be appealed to the Residential Small Claims Division of the State Tax Tribunal within 35 days of the date of the denial.
If the status of