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, with the taxable value determined as the lesser of the previous year's taxable value adjusted for inflation or the current state equalized valuation. New language is introduced to define the conditions under which property transfers are considered ownership transfers, impacting how taxable values are adjusted. The bill emphasizes that taxable values must be adjusted following a transfer of ownership and outlines procedures for correcting taxable values when ownership has not changed.

Additionally, the bill addresses the transfer of agricultural and forest properties, requiring property owners to provide proof of compliance with tax-free reorganization requirements and imposing a $200 penalty for non-compliance. It mandates the filing of specific affidavits for transfers of qualified agricultural and forest properties to maintain their classification. The bill also clarifies the conditions for adjusting taxable values and outlines the responsibilities of property owners regarding potential recapture taxes. Overall, the amendments aim to provide clearer guidelines for property assessment and taxation, ensuring compliance with state tax regulations while correcting previous misinterpretations of legislative intent.

Statutes affected:
Senate Introduced Bill: 211.27