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HB-5872, As Passed House, May 20, 2026
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SUBSTITUTE FOR
HOUSE BILL NO. 5872
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 27a (MCL 211.27a), as amended by 2016 PA 375.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 27a. (1) Except as otherwise provided in this section, 1
property shall must be assessed at 50% of its true cash value under 2
section 3 of article IX of the state constitution of 1963. 3
(2) Except as otherwise provided in subsection (3), for taxes 4
levied in 1995 and for each year after 1995, the taxable value of 5
each parcel of property is the lesser of the following: 6
(a) The property's taxable value in the immediately preceding 7
year minus any losses, multiplied by the lesser of 1.05 or the 8
inflation rate, plus all additions. For taxes levied in 1995, the 9
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property's taxable value in the immediately preceding year is the 1
property's state equalized valuation in 1994. 2
(b) The property's current state equalized valuation. 3
(3) Upon a transfer of ownership of property after 1994, the 4
property's taxable value for the calendar year following the year 5
of the transfer is the property's state equalized valuation for the 6
calendar year following the transfer. 7
(4) If the taxable value of property is adjusted under 8
subsection (3), a subsequent increase in the property's taxable 9
value is subject to the limitation set forth in subsection (2) 10
until a subsequent transfer of ownership occurs. If the taxable 11
value of property is adjusted under subsection (3) and the assessor 12
determines that there had not been a transfer of ownership, the 13
taxable value of the property shall must be adjusted corrected at 14
the July or December board of review. Notwithstanding the 15
limitation provided in section 53b(1) on the number of years for 16
which a correction may be made, the July or December board of 17
review may adjust correct the taxable value of property under this 18
subsection for the current year and for the 3 immediately preceding 19
calendar years. A corrected tax bill shall must be issued for each 20
tax year for which the taxable value is adjusted corrected by the 21
local tax collecting unit if the local tax collecting unit has 22
possession of the tax roll or by the county treasurer if the county 23
has possession of the tax roll. For purposes of section 53b, an 24
adjustment a correction under this subsection shall must be 25
considered the correction of a clerical error. 26
(5) Assessment of property, as required in this section and 27
section 27, is inapplicable to the assessment of property subject 28
to the levy of ad valorem taxes within voted tax limitation 29
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increases to pay principal and interest on limited tax bonds issued 1
by any governmental unit, including a county, township, community 2
college district, or school district, before January 1, 1964, if 3
the assessment required to be made under this act would be less 4
than the assessment as state equalized prevailing on the property 5
at the time of the issuance of the bonds. This inapplicability 6
continues until levy of taxes to pay principal and interest on the 7
bonds is no longer required. The assessment of property required by 8
this act applies for all other purposes. 9
(6) As used in this act, "transfer of ownership" means the 10
conveyance of title to or a present interest in property, including 11
the beneficial use of the property, the value of which is 12
substantially equal to the value of the fee interest. Transfer of 13
ownership of property includes, but is not limited to, the 14
following: 15
(a) A conveyance by deed. 16
(b) A conveyance by land contract. The taxable value of 17
property conveyed by a land contract executed after December 31, 18
1994 shall must be adjusted under subsection (3) for the calendar 19
year following the year in which the contract is entered into and 20
shall must not be subsequently adjusted under subsection (3) when 21
the deed conveying title to the property is recorded in the office 22
of the register of deeds in the county in which the property is 23
located. 24
(c) A conveyance to a trust after December 31, 1994, except 25
under any of the following conditions: 26
(i) If the settlor or the settlor's spouse, or both, conveys 27
the property to the trust and the sole present beneficiary or 28
beneficiaries are the settlor or the settlor's spouse, or both. 29
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(ii) Beginning December 31, 2014, for residential real 1
property, if the settlor or the settlor's spouse, or both, conveys 2
the residential real property to the trust and the sole present 3
beneficiary or beneficiaries are the settlor's or the settlor's 4
spouse's mother, father, brother, sister, son, daughter, adopted 5
son, adopted daughter, grandson, or granddaughter and the 6
residential real property is not used for any commercial purpose 7
following the conveyance. Upon request by the department of 8
treasury or the assessor, the sole present beneficiary or 9
beneficiaries shall furnish proof within 30 days that the sole 10
present beneficiary or beneficiaries meet the requirements of this 11
subparagraph. If a present beneficiary fails to comply with a 12
request by the department of treasury or assessor under this 13
subparagraph, that present beneficiary is subject to a fine of 14
$200.00. 15
(d) A conveyance by distribution from a trust, except under 16
any of the following conditions: 17
(i) If the distributee is the sole present beneficiary or the 18
spouse of the sole present beneficiary, or both. 19
(ii) Beginning December 31, 2014, a distribution of residential 20
real property if the distributee is the settlor's or the settlor's 21
spouse's mother, father, brother, sister, son, daughter, adopted 22
son, adopted daughter, grandson, or granddaughter and the 23
residential real property is not used for any commercial purpose 24
following the conveyance. Upon request by the department of 25
treasury or the assessor, the sole present beneficiary or 26
beneficiaries shall furnish proof within 30 days that the sole 27
present beneficiary or beneficiaries meet the requirements of this 28
subparagraph. If a present beneficiary fails to comply with a 29
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request by the department of treasury or assessor under this 1
subparagraph, that present beneficiary is subject to a fine of 2
$200.00. 3
(e) A change in the sole present beneficiary or beneficiaries 4
of a trust, except under any of the following conditions: 5
(i) A change that adds or substitutes the spouse of the sole 6
present beneficiary. 7
(ii) Beginning December 31, 2014, for residential real 8
property, a change that adds or substitutes the settlor's or the 9
settlor's spouse's mother, father, brother, sister, son, daughter, 10
adopted son, adopted daughter, grandson, or granddaughter and the 11
residential real property is not used for any commercial purpose 12
following the conveyance. Upon request by the department of 13
treasury or the assessor, the sole present beneficiary or 14
beneficiaries shall furnish proof within 30 days that the sole 15
present beneficiary or beneficiaries meet the requirements of this 16
subparagraph. If a present beneficiary fails to comply with a 17
request by the department of treasury or assessor under this 18
subparagraph, that present beneficiary is subject to a fine of 19
$200.00. 20
(f) A conveyance by distribution under a will or by intestate 21
succession, except under any of the following conditions: 22
(i) If the distributee is the decedent's spouse. 23
(ii) Beginning December 31, 2014, for residential real 24
property, if the distributee is the decedent's or the decedent's 25
spouse's mother, father, brother, sister, son, daughter, adopted 26
son, adopted daughter, grandson, or granddaughter and the 27
residential real property is not used for any commercial purpose 28
following the conveyance. Upon request by the department of 29
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treasury or the assessor, the sole present beneficiary or 1
beneficiaries shall furnish proof within 30 days that the sole 2
present beneficiary or beneficiaries meet the requirements of this 3
subparagraph. If a present beneficiary fails to comply with a 4
request by the department of treasury or assessor under this 5
subparagraph, that present beneficiary is subject to a fine of 6
$200.00. 7
(g) A conveyance by lease if the total duration of the lease, 8
including the initial term and all options for renewal, is more 9
than 35 years or the lease grants the lessee a bargain purchase 10
option. As used in this subdivision, "bargain purchase option" 11
means the right to purchase the property at the termination of the 12
lease for not more than 80% of the property's projected true cash 13
value at the termination of the lease. After December 31, 1994, the 14
taxable value of property conveyed by a lease with a total duration 15
of more than 35 years or with a bargain purchase option shall must 16
be adjusted under subsection (3), for the calendar year following 17
the year in which the lease is entered into. This subdivision does 18
not apply to personal property except buildings described in 19
section 14(6) and personal property described in section 8(h), (i), 20
and (j). This subdivision does not apply to that portion of the 21
property not subject to the leasehold interest conveyed. 22
(h) Except as otherwise provided in this subdivision, a 23
conveyance of an ownership interest in a corporation, partnership, 24
sole proprietorship, limited liability company, limited liability 25
partnership, or other legal entity if the ownership interest 26
conveyed is more than 50% of the corporation, partnership, sole 27
proprietorship, limited liability company, limited liability 28
partnership, or other legal entity. Unless notification is provided 29
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under subsection (10), the corporation, partnership, sole 1
proprietorship, limited liability company, limited liability 2
partnership, or other legal entity shall notify the assessing 3
officer on a form provided by the state tax commission not more 4
than 45 days after a conveyance of an ownership interest that 5
constitutes a transfer of ownership under this subdivision. Both of 6
the following apply to a corporation subject to 1897 PA 230, MCL 7
455.1 to 455.24: 8
(i) A transfer of stock of the corporation is a transfer of 9
ownership only with respect to the real property that is assessed 10
to the transferor lessee stockholder. 11
(ii) A cumulative conveyance of more than 50% of the 12
corporation's stock does not constitute a transfer of ownership of 13
the corporation's real property. 14
(i) A transfer of property held as a tenancy in common, except 15
that portion of the property not subject to the ownership interest 16
conveyed. 17
(j) A conveyance of an ownership interest in a cooperative 18
housing corporation, except that portion of the property not 19
subject to the ownership interest conveyed. 20
(k) Notwithstanding the provisions of section 7ee(5), at the 21
request of a property owner, an assessor's establishment of a 22
separate tax parcel for a portion of a parcel that ceases to be 23
qualified agricultural property but is not subject to a land 24
division under the land division act, 1967 PA 288, MCL 560.101 to 25
560.293, or any local ordinance. For purposes of this subdivision, 26
a transfer of ownership occurs only as to that portion of the 27
parcel established as a separate tax parcel and only that portion, 28
shall must have its taxable value adjusted under subsection (3) 29
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and shall be is subject to the recapture tax provided for under the 1
agricultural property recapture act, 2000 PA 261, MCL 211.1001 to 2
211.1007. The adjustment under subsection (3) shall must be made as 3
of the December 31 in the year that the portion of the parcel 4
established as a separate tax parcel ceases to be qualified 5
agricultural property. A portion of a parcel subject to this 6
subdivision is considered a separate tax parcel only for those 7
purposes described in this subdivision. 8
(7) Transfer of ownership does not include the following: 9
(a) The transfer of property from 1 spouse to the other spouse 10
or from a decedent to a surviving spouse. 11
(b) A transfer from a husband, a wife, or a married couple 1 12
or both spouses creating or disjoining a tenancy by the entireties 13
in the grantors or the grantor and his or her the grantor's spouse. 14
(c) Subject to subdivision (d), a transfer of that portion of 15
property subject to a life estate or life lease retained by the 16
transferor, until expiration or termination of the life estate or 17
life lease. That portion of property transferred that is not 18
subject to a life lease shall must be adjusted under subsection 19
(3). 20
(d) Beginning December 31, 2014, a transfer of that portion of 21
residential real property that had been subject to a life estate or 22
life lease retained by the transferor resulting from expiration or 23
termination of that life estate or life lease, if the transferee is 24
the transferor's or transferor's spouse's mother, father, brother, 25
sister, son, daughter, adopted son, adopted daughter, grandson, or 26
granddaughter and the residential real property is not used for any 27
commercial purpose following the transfer. Upon request by the 28
department of treasury or the assessor, the transferee shall 29
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furnish proof within 30 days that the transferee meets the 1
requirements of this subdivision. If a transferee fails to comply 2
with a request by the department of treasury or assessor under this 3
subdivision, that transferee is subject to a fine of $200.00. 4
(e) A transfer through foreclosure or forfeiture of a recorded 5
instrument under chapter 31, 32, or 57 of the revised judicature 6
act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701 7
to 600.5759, or through deed or conveyance in lieu of a foreclosure 8
or forfeiture, until the mortgagee or land contract vendor 9
subsequently transfers the property. If a mortgagee does not 10
transfer the property within 1 year of the expiration of any 11
applicable redemption period, the property shall must be adjusted 12
under subsection (3). 13
(f) A transfer by redemption by the person to whom taxes are 14
assessed of property previously sold for delinquent taxes. 15
(g) A conveyance to a trust if the settlor or the settlor's 16
spouse, or both, conveys the property to the trust and any of the 17
following conditions are satisfied: 18
(i) If the sole present beneficiary of the trust is the settlor 19
or the settlor's spouse, or both. 20
(ii) Beginning December 31, 2014, for residential real 21
property, if the sole present beneficiary of the trust is the 22
settlor's or the settlor's spouse's mother, father, brother, 23
sister, son, daughter, adopted son, adopted daughter, grandson, or 24
granddaughter and the residential real property is not used for any 25
commercial purpose following the conveyance. Upon request by the 26
department of treasury or the assessor, the sole present 27
beneficiary or beneficiaries shall furnish proof within 30 days 28
that the sole present beneficiary or beneficiaries meet the 29
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requirements of this subparagraph. If a present beneficiary fails 1
to comply with a request by the department of treasury or assessor 2
under this subparagraph, that present beneficiary is subject to a 3
fine of $200.00. 4
(h) A transfer pursuant to a judgment or order of a court of 5
record making or ordering a transfer, unless a specific monetary 6
consideration is specified or ordered by the court for the 7
transfer. 8
(i) A transfer creating or terminating a joint tenancy between 9
2 or more persons if at least 1 of the persons was an original 10
owner of the property before the joint tenancy was initially 11
created and, if the property is held as a joint tenancy at the time 12
of conveyance, at least 1 of the persons was a joint tenant when 13
the joint tenancy was initially created and that person has 14
remained a joint tenant since the joint tenancy was initially 15
created. A joint owner at the time of the last transfer of 16
ownership of the property is an original owner of the property. For 17
purposes of this subdivision, a person is an original owner of 18
property owned by that person's spouse. 19
(j) A transfer for security or an assignment or discharge of a 20
security interest. 21
(k) A transfer of real property or other ownership interests 22
among members of an affiliated group. As used in this subsection, 23
"affiliated group" means 1 or more corporations connected by stock 24
ownership to a common parent corporation. Upon request by the state 25
tax commission, a corporation shall furnish proof within 45 days 26
that a transfer meets the requirements of this subdivision. A 27
corporation that fails to comply with a request by the state tax 28
commission under this subdivision is subject to a fine of $200.00. 29
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(l) Normal public trading of shares of stock or other ownership 1
interests that, over any period of time, cumulatively represent 2
more than 50% of the total ownership interest in a corporation or 3
other legal entity and are traded in multiple transactions 4
involving unrelated individuals, institutions, or other legal 5
entities. 6
(m) A transfer of real property or other ownership interests 7
among corporations, partnerships, limited liability companies, 8
limited liability partnerships, or other legal entities if the 9
entities involved are commonly controlled. Upon request by the 10
state tax commission, a corporation, partnership, limited liability 11
company, limited liability partnership, or other legal entity shall 12
furnish proof within 45 days that a transfer meets the requirements 13
of this subdivision. A corporation, partnership, limited liability 14
company, limited liability partnership, or other legal entity that 15
fails to comply with a request by the state tax commission under 16
this subdivision is subject to a fine of $200.00. 17
(n) A direct or indirect transfer of real property or other 18
ownership interests resulting from a transaction that qualifies as 19
a tax-free reorganization under section 368 of the internal revenue 20
code, 26 USC 368. Upon request by the state tax commission, a 21
property owner shall furnish proof within 45 days that a transfer 22
meets the requirements of this subdivision. A property owner who 23
fails to comply with a request by the state tax commission under 24
this subdivision is subject to a fine of $200.00. 25
(o) Except as provided in subsection (6)(k), a transfer of 26
qualified agricultural property, if the person to whom the 27
qualified agricultural property is transferred files an affidavit 28
with the assessor of the local tax collecting unit in which the 29
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qualified agricultural property is located and with the register of 1
deeds for the county in which the qualified agricultural property 2
is located attesting that the qualified agricultural property will 3
remain qualified agricultural property. The affidavit under this 4
subdivision shall must be in a form prescribed by the department of 5
treasury. An owner of qualified agricultural property shall inform 6
a prospective buyer of that qualified agricultural property that 7
the qualified agricultural property is subject to the recapture tax 8
provided in the agricultural property recapture act, 2000 PA 261, 9
MCL 211.1001 to 211.1007, if the qualified agricultural property is 10
converted by a change in use, as that term is defined in section 2 11
of the agricultural property recapture act, 2000 PA 261, MCL 12
211.1002. If property ceases to be qualified agricultural property 13
at any time after a transfer subject to this subdivision, all of 14
the following shall occur:apply: 15
(i) The taxable value of that property, or, if subsection 16
(6)(k) applies, a portion of it established as a separate tax 17
parcel, shall must be adjusted under subsection (3) as of the 18
December 31 in the year that the property, or, if subsection (6)(k) 19
applies, a portion of it established as a separate tax parcel, 20
ceases to be qualified agricultural property. 21
(ii) The property, or, if subsection (6)(k) applies, a portion 22
of it established as a separate tax parcel, is subject to the 23
recapture tax provided for under the agricultural property 24
recapture act, 2000 PA 261, MCL 211.1001 to 211.1007. 25
(p) A transfer of qualified forest property, if the person to 26
whom the qualified forest property is transferred files a qualified 27
forest taxable value affidavit with the assessor of the local tax 28
collecting unit in which the qualified forest property is located 29
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and with the register of deeds for the county in which the 1
qualified forest property is located attesting that the qualified 2
forest property will remain qualified forest property. The 3
qualified forest taxable value affidavit under this subdivision 4
shall must be in a form prescribed by the department of agriculture 5
and rural development. The qualified forest taxable value affidavit 6
shall must include a legal description of the qualified forest 7
property, the name of the new property owner, the year the transfer 8
of the property occurred, a statement indicating that the property 9
owner is attesting that the property for which the exemption is 10
claimed is qualified forest property and will be managed according 11
to the approved forest management plan, and any other information 12
pertinent to the parcel and the property owner. The property owner 13
shall provide a copy of the qualified forest taxable value 14
affidavit to the department. The department shall provide 1 copy of 15
the qualified forest taxable value affidavit to the local tax 16
collecting unit, 1 copy to the conservation district, and 1 copy to 17
the department of treasury. These copies may be sent 18
electronically. The exception to the recognition of a transfer of 19
ownership, as herein stated, provided in this subdivision, extends 20
to the land only of the qualified forest property. If qualified 21
forest property is improved by buildings, structures, or land 22
improvements, then those improvements shall must be recognized as a 23
transfer of ownership, in accordance with the provisions of section 24
7jj[1]. An owner of qualified forest property shall inform a 25
prospective buyer of that qualified forest property that the 26
qualified forest property is subject to the recapture tax provided 27
in the qualified forest property recapture tax act, 2006 PA 379, 28
MCL 211.1031 to 211.1036, if the qualified forest property is 29
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converted by a change in use, as that term is defined in section 2 1
of the qualified forest property recapture tax act, 2006 PA 379, 2
MCL 211.1032. If property ceases to be qualified forest property at 3
any time after being transferred, all of the following shall 4
occur:apply: 5
(i) The taxable value of that property shall must be adjusted 6
under subsection (3) as of the December 31 in the year that the 7
property ceases to be qualified forest property, except to the 8
extent that the transfer of the qualified forest property would not 9
have been considered a transfer of ownership under this subsection. 10
(ii) Except as otherwise provided in subparagraph (iii), the 11
property is subject to the recapture tax provided for under the 12
qualified forest property recapture tax act, 2006 PA 379, MCL 13
211.1031 to 211.1036. 14
(iii) Beginning June 1, 2013 and ending November 30, 2013, 15
owners of property enrolled as qualified forest property before 16
January 1, 2013 may execute a new qualified forest taxable value 17
affidavit with the department of agriculture and rural development. 18
If a landowner elects to execute a qualified forest taxable value 19
affidavit, that owner is not required to pay the $50.00 fee 20
required under section 7jj[1](2). If a landowner elects not to 21
execute a qualified forest taxable value affidavit, the existing 22
affidavit shall must be rescinded, without subjecting the property 23
to the recapture tax provided for under the qualified forest 24
property recapture tax act, 2006 PA 379, MCL 211.1031 to 211.1036, 25
and the taxable value of that property shall must be adjusted under 26
subsection (3). 27
(q) Beginning on December 8, 2006, a transfer of land, but not 28
buildings or structures located on the land, which that meets 1 or 29
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more of the following requirements: 1
(i) The land is subject to a conservation easement under 2
subpart 11 of part 21 of the natural resources and environmental 3
protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in 4
this subparagraph, "conservation easement" means that term as 5
defined in section 2140 of the natural resources and environmental 6
protection act, 1994 PA 451, MCL 324.2140. 7
(ii) A transfer of ownership of the land or a transfer of an 8
interest in the land is eligible for a deduction as a qualified 9
conservation contribution under section 170(h) of the internal 10
revenue code, 26 USC 170. 11
(r) A transfer of real property or other ownership interests 12
resulting from a consolidation or merger of a domestic nonprofit 13
corporation that is a boy Boy or girl scout Girl Scout or camp fire 14
girls Camp Fire Girls organization, a 4-H club or foundation, a 15
young men's Young Men's Christian association, Association, or a 16
young women's Young Women's Christian association Association and 17
at least 50% of the members of that organization or association are 18
residents of this state. 19
(s) A change to the assessment roll or tax roll resulting from 20
the application of section 16a of 1897 PA 230, MCL 455.16a. 21
(t) Beginning December 31, 2013 through December 30, 2014, a 22
transfer of residential real property if the transferee is related 23
to the transferor by blood or affinity to the first degree and the 24
use of the residential real property does not change following the 25
transfer. 26
(u) Beginning December 31, 2014, a transfer of residential 27
real property if the transferee is the transferor's or the 28
transferor's spouse's mother, father, brother, sister, son, 29
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daughter, adopted son, adopted daughter, grandson, or granddaughter 1
and the residential real property is not used for any commercial 2
purpose following the conveyance. Upon request by the department of 3
treasury or the assessor, the transferee shall furnish proof within 4
30 days that the transferee meets the requirements of this 5
subdivision. If a transferee fails to comply with a request by the 6
department of treasury or assessor under this subdivision, that 7
transferee is subject to a fine of $200.00. 8
(v) Beginning December 31, 2014, for residential real 9
property, a conveyance from a trust if the person to whom the 10
residential real property is conveyed is the settlor's or the 11
settlor's spouse's mother, father, brother, sister, son, daughter, 12
adopted son, adopted daughter, grandson, or granddaughter and the 13
residential real property is not used for any commercial purpose 14
following the conveyance. Upon request by the department of 15
treasury or the assessor, the sole present beneficiary or 16
beneficiaries shall furnish proof within 30 days that the sole 17
present beneficiary or beneficiaries meet the requirements of this 18
subdivision. If a present beneficiary fails to comply with a 19
request by the department of treasury or assessor under this 20
subdivision, that present beneficiary is subject to a fine of 21
$200.00. 22
(w) Beginning on March 31, 2015, a conveyance of land by 23
distribution under a will or trust or by intestate succession, but 24
not buildings or structures located on the land, which that meets 1 25
or more of the following requirements: 26
(i) The land is made subject to a conservation easement under 27
subpart 11 of part 21 of the natural resources and environmental 28
protection act, 1994 PA 451, MCL 324.2140 to 324.2144, prior to 29
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before the conveyance by distribution under a will or trust or by 1
intestate succession. As used in this subparagraph, "conservation 2
easement" means that term as defined in section 2140 of the natural 3
resources and environmental protection act, 1994 PA 451, MCL 4
324.2140. 5
(ii) The land or an interest in the land is made eligible for a 6
deduction as a qualified conservation contribution under section 7
170(h) of the internal revenue code, 26 USC 170, prior to before 8
the conveyance by distribution under a will or trust or by 9
intestate succession. 10
(x) A conveyance of property under section 2120a(6) of the 11
natural resources and environmental protection act, 1994 PA 451, 12
MCL 324.2120a. 13
(y) Beginning December 31, 2026, for purposes of subsections 14
(3) and (4) only, a conveyance of title to or a present interest in 15
any property. 16
(8) If all of the following conditions are satisfied, the 17
local tax collecting unit shall revise the taxable value of 18
qualified agricultural property taxable on the tax roll in the 19
possession of that local tax collecting unit to the taxable value 20
that qualified agricultural property would have had if there had 21
been no transfer of ownership of that qualified agricultural 22
property since December 31, 1999 and there had been no adjustment 23
of that qualified agricultural property's taxable value under 24
subsection (3) since December 31, 1999: 25
(a) The qualified agricultural property was qualified 26
agricultural property for taxes levied in 1999 and each year after 27
1999. 28
(b) The owner of the qualified agricultural property files an 29
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affidavit with the assessor of the local tax collecting unit under 1
subsection (7)(o). 2
(9) If the taxable value of qualified agricultural property is 3
adjusted under subsection (8), the owner of that qualified 4
agricultural property is not entitled to a refund for any property 5
taxes collected under this act on that qualified agricultural 6
property before the adjustment under subsection (8). 7
(10) The register of deeds of the county where deeds or other 8
title documents are recorded shall notify the assessing officer of 9
the appropriate local taxing unit not less than once each month of 10
any recorded transaction involving the ownership of property and 11
shall make any recorded deeds or other title documents available to 12
that county's tax or equalization department. Unless notification 13
is provided under subsection (6), the buyer, grantee, or other 14
transferee of the property shall notify the appropriate assessing 15
office in the local unit of government in which the property is 16
located of the transfer of ownership of the property within 45 days 17
of the transfer of ownership, on a form prescribed by the state tax 18
commission that states the parties to the transfer, the date of the 19
transfer, the actual consideration for the transfer, and the 20
property's parcel identification number or legal description. Forms 21
filed in the assessing office of a local unit of government under 22
this subsection shall must be made available to the county tax or 23
equalization department for the county in which that local unit of 24
government is located. This subsection does not apply to personal 25
property except buildings described in section 14(6) and personal 26
property described in section 8(h), (i), and (j). 27
(11) As used in this section: 28
(a) "Additions" means that term as defined in section 34d. 29
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BEG H04272'25 (H-2)_HB5872_APH_1 6a02ij
(b) "Beneficial use" means the right to possession, use, and 1
enjoyment of property, limited only by encumbrances, easements, and 2
restrictions of record. 3
(c) "Commercial purpose" means used in connection with any 4
business or other undertaking intended for profit, but does not 5
include the rental of residential real property for a period of 6
less than 15 days in a calendar year. 7
(d) "Inflation rate" means that term as defined in section 8
34d. 9
(e) "Losses" means that term as defined in section 34d. 10
(f) "Qualified agricultural property" means that term as 11
defined in section 7dd. 12
(g) "Qualified forest property" means that term as defined in 13
section 7jj[1]. 14
(h) "Residential real property" means real property classified 15
as residential real property under section 34c. 16