The Michigan House unanimously approved legislation last week to prevent out-of-state residents from improperly claiming property tax exemptions when they buy second homes in Michigan.

The bills, approved by 108-0 votes, are sponsored by state Reps. Kim LaSata, of Bainbridge Township, and Dave Pagel, of Berrien Springs. The legislation is intended to address a key issue in the southwest part of the state near Lake Michigan, officials said.

The bills were introduced because some property owners intentionally declare a homestead property tax exemption on their second home in Michigan, while at the same time claiming a similar exemption on their primary residence in another state.

“This is an unfair practice that reduces revenue for Michigan’s public schools and services provided by local governments,” Pagel said.

“It’s a loophole in Michigan law that absolutely must be closed, and it must be closed now,” LaSata added.

The new legislation would clarify Michigan law. If a property owner has claimed a principal residence exemption in Michigan while claiming a similar exemption in another state, the Michigan exemption would be rescinded. A claim for a Michigan homestead tax exemption could be denied and enforced retroactively if it is discovered the property owner had claimed a similar exemption in another state.

Intentional violators could face a misdemeanor criminal charge.

LaSata and Pagel welcome out-of-state residents who want to buy property in Michigan, but emphasized tax laws should be followed justly and properly.

The legislation will advance to the Senate for consideration.