The bill amends the General Property Tax Act of 1893, specifically section 27a, to clarify property assessment and taxable value regulations. It mandates that properties be assessed at 50% of their true cash value and outlines the calculation of taxable value, particularly following ownership transfers. New language specifies the necessity for corrections to taxable values upon ownership changes and requires the issuance of corrected tax bills for the relevant tax years. The bill also provides a detailed definition of "transfer of ownership," covering various scenarios such as conveyances by deed and distributions from trusts. Additionally, it introduces fines for beneficiaries who do not comply with requests from the Department of Treasury or assessors regarding proof of compliance.

Furthermore, the bill addresses the taxation of qualified agricultural and forest properties, requiring property owners to inform prospective buyers about applicable recapture taxes if the property's use changes. It establishes new requirements for filing affidavits related to qualified forest properties, including legal descriptions and adherence to forest management plans. The bill outlines exemptions for certain property transfers, such as those between family members or under specific conservation easements, and emphasizes the importance of timely notifications to local tax authorities, along with penalties for non-compliance. Overall, these amendments aim to enhance clarity and compliance in property assessment and ownership transfer processes in Michigan.

Statutes affected:
Substitute (H-2): 211.27
House Introduced Bill: 211.27
As Passed by the House: 211.27