The bill amends the General Property Tax Act of 1893, specifically section 34d, to enhance the clarity and efficiency of property tax assessments in Michigan. It introduces new definitions for "additions" and "losses" related to property taxes levied before and after 1994, specifying that "additions" for taxes levied after 1994 include omitted real and personal property, new construction, previously exempt property, and increases in taxable value due to environmental remediation. Additionally, the bill modifies terminology in the assessment process, replacing "assessment" with "local tax collecting unit" in several instances, and clarifies that losses do not include decreased value due to platting, splits, combinations of property, or changes in zoning.

Moreover, the bill addresses the calculation of millage rates authorized by voters, stating that millage approved after April 30 of a given year will not be subject to a millage reduction until the following year. It also establishes that the first millage reduction fraction for millage approved after January 1, 1979, must not exceed 1 and outlines the process for local governments to seek voter approval for tax rates exceeding established limits. The bill removes provisions related to the permanent reduction of maximum authorized millage rates for taxes levied in 1994 and beyond, eliminating the requirement for these rates to be calculated based on compounded reductions from prior years. Additionally, it mandates the recalculation of millage reduction fractions in the event of changes in taxable value due to equalization appeals and specifies rounding for these fractions. The enactment of this bill is contingent upon the passage of another related bill.

Statutes affected:
House Introduced Bill: 211.34