valuation

Principal Residence Exemption (PRE)

A Michigan property tax exemption under MCL 211.7cc that exempts an owner-occupied principal residence from school operating millage, up to 18 mills. Other millages, such as county, township or city levies, school debt and the state education tax, still apply. Rentals and second homes without a PRE pay the full school operating levy, which is why identical houses on the same street can have very different tax bills.