Correcting Deed Did Not Have Retroactive Effect
In Pizzo v. Department of Treasury, Michigan Court of Appeals, No. 305033, September 13, 2012 the taxpayers were not entitled to a Michigan property tax principal residence exemption because a correcting deed that purportedly conveyed the property to the taxpayers as joint tenants with rights of survivorship and was recorded on March 31, 2008, did not have retroactive effect.
In this case, one of the taxpayers occupied the property as her principal residence from 2004 to 2007 and her husband did not reside on the property. An August 14, 2003 quitclaim deed, the original deed, conveyed the wife's entire interest in the property to her husband. At the time the husband was sent a delinquent tax notice on December 13, 2007, he, as the owner of the property, was not entitled to the principal residence exemption because the property was not his principal residence. The wife also was not entitled to the principal residence exemption at that time because there was no documentation that she owned the property. In addition, the original deed failed to indicate that the wife continued to have a life lease on the property after her ownership interest ceased because the life lease was not in writing as required.