The bill amends the General Property Tax Act of 1893, specifically section 27a, to clarify the assessment and taxation of property in Michigan. It establishes that property must be assessed at 50% of its true cash value, as required by the state constitution. Key changes include the stipulation that the taxable value of property must be adjusted during the July or December board of review if there has been no transfer of ownership, and mandates the issuance of corrected tax bills for each affected tax year. The bill also updates the language to replace "shall" with "must," reinforcing the mandatory nature of these provisions. Additionally, it defines "transfer of ownership" and outlines specific conditions under which certain transfers, such as those between spouses or to trusts, do not require tax adjustments.

Moreover, the bill introduces new requirements for property owners of qualified agricultural and forest properties, mandating the filing of affidavits with local tax assessors and registers of deeds to confirm the properties' classifications. It also specifies penalties for non-compliance, including a $200 fine. The bill clarifies the conditions for adjusting the taxable value of these properties if they no longer meet qualifications after a transfer and expands the definition of family members for residential property transfers to include grandparents. Overall, the amendments aim to streamline property tax assessments, clarify ownership transfer rules, and ensure compliance with tax regulations.

Statutes affected:
House Introduced Bill: 211.27
As Passed by the House: 211.27