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 properties must be assessed at 50% of their true cash value and outlines the calculation of taxable value, particularly following ownership transfers. New provisions mandate adjustments to taxable values under specific conditions, such as the absence of ownership transfer, and require the issuance of corrected tax bills for these adjusted values. The bill also expands the definition of "transfer of ownership" to include various conveyances, such as those involving trusts and leases, while detailing scenarios that qualify or exempt certain transfers from being classified as ownership changes.

Additionally, the bill introduces amendments related to the transfer of qualified agricultural and forest properties, as well as residential real property. It requires property owners to provide proof of compliance with transfer requirements to the state tax commission within 45 days, imposing a $200 penalty for non-compliance. The bill broadens the definition of family members for property transfers, allowing for a wider range of relatives to be included without commercial use implications. It also mandates that beneficiaries of trusts provide proof of compliance similar to direct family transfers and establishes a notification process for recorded transactions involving property ownership. Overall, these amendments aim to streamline property transfer processes while ensuring adherence to tax regulations.

Statutes affected:
House Introduced Bill: 211.27