Finance
In Michigan, the Principal Residence Exemption (PRE) reduces:
AThe sales price subject to transfer tax
BThe school operating millage on the property tax bill for owner-occupied homes✓ Correct
CThe state income tax owed on capital gains from a home sale
DThe mortgage interest deduction limit
Explanation
Michigan's Principal Residence Exemption (PRE) exempts a homeowner's principal residence from the local school operating millage, reducing property taxes for owner-occupants compared to non-homestead properties.
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