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 and details the calculation of taxable value, particularly following ownership transfers. New provisions require adjustments to taxable values under specific conditions, such as ownership transfers through deeds and land contracts, and mandate the issuance of corrected tax bills for each affected tax year. The bill also defines "transfer of ownership" and outlines exceptions, including transfers between spouses and certain family members, as well as those involving trusts. It introduces penalties for beneficiaries who fail to provide proof of compliance with these requirements.

Furthermore, the bill revises laws concerning the transfer of qualified agricultural, forest, and residential properties, imposing specific documentation requirements on property owners. It mandates that proof of compliance with transfer requirements be submitted within 45 days upon request from the state tax commission, with a $200 penalty for non-compliance. The bill expands the definition of eligible transferees for residential real property to include a wider range of family members, ensuring that transfers to these individuals are not for commercial purposes. It also recognizes property transfers under wills or trusts under the same conditions as other transfers and emphasizes the need for timely notification of property transfers to local assessing offices, detailing the responsibilities of the register of deeds in maintaining accurate ownership records.

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