The real estate market has turned many a hopeful seller into a reluctant landlord (or SellLord, as I have dubbed them). Yesterday I got wind of something I have never heard of before, though I can understand the motivation.
A new tenant went to enroll her children in the Birmingham public schools. The admission process is lengthy she tells me, and one of the things she was instructed to do was make sure that the landlord had rescinded the homestead exemption on the home. Well, in Birmingham and in most surrounding areas, there is a significant differences in the amount of taxes due on a non-homesteaded property. The school official told her that those funds are used for school funding, hence the district’s interest in ensuring that the exemptions are correctly rescinded.
Perhaps Birmingham has been doing this a long time. I don’t know. I also heard a rumor that either the school board or the district was researching all of the currently enrolled students living in rentals to make sure their rental home owners were paying non-homestead taxes. This is just an unsubstantiated rumor though.
Will the district enroll a student living in a rental where the homestead has not been rescinded? I assume they will. I also assume they *might* pursue some owners who have not properly rescinded, though it could be difficult proving when the property became tenant occupied if a tenant’s child was not enrolled in school.
It is a certainty that the schools and the municipalities need the funding that is due them in these tough economic times. As a property owner who has long paid non-homestead taxes I would like to think that others also willingly accept this responsibility when they rent out a home, even though I have never thought the property taxation method for non owner occupied homes was fair.
Birmingham Public Schools serve some residents of Birmingham, Beverly Hills, Franklin, Bingham Farms, Troy, Southfield, Bloomfield Hills and West Bloomfield. District Map.