The bill amends the General Property Tax Act of 1893, specifically section 27, to clarify the definition of "true cash value" and the assessment process for property taxes in Michigan. It establishes that true cash value is determined by the usual selling price of the property at the time of assessment, excluding certain types of sales such as those in bankruptcy or forced sales. The bill also specifies that assessors must consider various factors, including location, zoning, and existing use, when determining true cash value. Additionally, it introduces provisions that prevent assessors from considering increases in true cash value due to normal repairs, replacements, or maintenance until the property is sold, and outlines specific types of repairs that qualify as normal maintenance.

Furthermore, the bill introduces new language regarding the assessment of nonprofit housing properties, stating that the purchase price paid in certain transfers is the presumptive true cash value. It also establishes guidelines for assessing the true cash value of principal residences, particularly concerning remodeling or renovation expenditures, which will not be considered until the property is sold, with specific limitations on the amount excluded. The bill includes definitions for terms such as "principal residence" and "remodeling or renovation," and it stipulates that the amendments will take effect 180 days after being enacted into law.

Statutes affected:
House Introduced Bill: 211.27