Exemption

The Principal Residence Exemption Program

The Principal Residence Exemption Program

The Principal Residence Exemption program is a product of the property tax reforms put into place by legislation in 1994 known as “Proposal A,” which raised sales tax to 6% and reduced property tax millage on a principal residence. There are four different “forms” to be used with Principal Residence Exemption Affidavit program.  Each of these forms is also available at the Park Township Assessor’s Office and must be filed with the Assessor.

1.  Principal Residence Exemption Affidavit (Form 2368).  This form is used to claim a homestead exemption on your principal residence. Partial homestead exemptions are available for multi-family housing.

What is your principal residence?

  • The home that you return to after you have been away
  • The place at which you live each day
  • The address at which you are registered to vote
  • The place listed on your driver’s license
  • The address which is listed on your income tax return
  • The school district where your children attend school, etc.

It is NOT the cottage, NOR the summer condo, NOR the weekend getaway home, NOR the rental property. It is also NOT the property with the highest value if you do not live there. The key item to remember is you MUST OWN AND OCCUPY your principal residence by May 1.

2.  Request to Rescind/Withdraw Principal Residence Exemption (Form 2602). This form is to be used to change the use of your principal residence to something else such as a rental house or secondary home.

3.  Conditional Rescission of Principal Residence Exemption (Form 4640). This new form enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner’s principal residence that is not occupied and for sale.

The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met. Contact the assessor for additional details.

4.  Claim for Farmland Exemption, is for non-agriculturally classed property devoted primarily to agricultural uses. Please check with the Township Assessor for more information on this form.

These forms are very significant financially to your as a property owner. If you fail to file a homestead exemption claim when your property is eligible, you will pay too much tax (approximately $18.00 per $1,000 of taxable value). If you fail to rescind the exemption when the property is no longer your principal residence, you could be billed for additional taxes, penalty, and interest.