Mich. Admin. Code R 206.26 — Property taxes claimable for home stead property tax credit; sale of

property; apportionment of taxes; computation of credit.
Rule 26. (1) Property taxes which may be claimed for a property tax credit are:
(a) Taxes based on the state equalized value of the homestead, including collection
fees. Special assessments based on state equalized value may also be claimed.
(b) The property must be locat ed in Michigan and be the principal residence
of the claimant.
(c) The taxes shall be the taxes billed for the year the credit is claimed. For
example, a property tax credit claimed for 1976 shall be based on taxes billed to the
owner for 1976, usually in July and December.
(2) If the property is sold during the year, the taxes shall be apportioned
between the buyer and seller according to the numbe r of days in the calendar year that
each occupied the house.
Example 1. The taxpayer sold his home in April, 1976, which he occupied until
May 31, 1976. The property taxes for 1976 amounted to $600.00 (summer taxes
$200.00, winter taxes $400.00) billed to the new owner in July and December of
1976. On August 1, 1976, he purchased a new home which he first occupied on
October 1, 1976. The 1976 taxes on the new home totaled $800.00 (summer taxes
$300.00, winter taxes $500.00). The taxes that may be claimed for credit are
computed as follows:
_____________________________________________________________________
______________
Computation Homestead Homestead
Steps Sold Bought
_____________________________________________________________________
_______________
1. Number of days occupied 152 92
2. Divide line 1 by 366 days 41.5% 25.1%
3. 1976 property taxes $600.00 $800.00
4. Prorated taxes line 3 X line 2 $249.00 $200.80
5. Total taxes for credit $449.80

The taxpayer rented a home for the period June 1 to September 30, 1976,
and may also claim the 17% of tax in rent.