What criteria must be met for a property to qualify for tax exemption?

For a property to qualify for tax exemption in Michigan, it must serve a public benefit, be owned by a nonprofit organization, or not generate revenue. This criterion underscores the purpose behind tax exemptions, which is to relieve certain entities from the financial burdens associated with property taxes, allowing them to allocate more resources toward their missions that typically benefit the community at large.

For instance, properties used for educational, charitable, or religious activities often fit into this category as they deliver services that support public interests. The focus is not solely on the location of the property or its assessed value but primarily on its use and ownership structure, which is aligned with the overarching goal of fostering social welfare and community benefit through exempting certain properties from taxation.

Other options may relate to property characteristics, such as assessed value or property type, but they do not align with the fundamental criteria established for tax exemption purposes.