What is the exemption status of property owned and occupied by nonprofit religious or educational organizations?

Property owned and occupied by nonprofit religious or educational organizations is typically exempt from both real and personal property taxation in Michigan. This exemption is granted in recognition of the community services and benefits these organizations provide, which contribute to the social welfare and educational advancement of the public.

The law is designed to support organizations that serve the public interest, helping to relieve some of the tax burdens that such entities would otherwise face if they had to pay property taxes, thereby allowing them to allocate more resources toward their missions. The exemption applies to properties used exclusively for their specific functions, such as houses of worship, schools, or institutions serving a charitable purpose. This status is important for maintaining the viability and functionality of these organizations within communities.

In contrast, choices that limit the exemption to only personal or only real property or that suggest the property remains fully taxable do not align with the legal provisions for nonprofit organizations as established in Michigan law.