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You must be the owner and occupant or be contracted to pay rent and occupy the dwelling. You can only have one homestead at a time. Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.
Depending on the local millage, non-homestead status can raise your taxes 40% to 100%. Example; City of Howell millage is about 42. So adding 18 mils school operating tax raises it about 40%.
Principal Residence Exemption (Homestead Exemption) This is usually an 18-mill reduction in calculated taxes. This means that a homeowner is usually going to pay $18 less per $1,000 of taxable value on a principal residence than if it was a cottage or second home.
Michigan Department of Treasury Form 2368 (Rev. 6-99), Homestead Exemption Affidavit, is required to be filed if you wish to receive an exemption. Once you file on a residence, no additional filings are required as long as the claimant's exemption status remains unchanged.
A claim for refund and/or credit must be made within 4 years from the due date set for filing the annual return. For example, the 2018 homestead property tax credit must be filed by April 18, 2023.