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Changes in Ownership and Uncapping of Property
How do changes in ownership affect property taxes?
Changes of ownership may or may not affect your property taxes depending on whether the conveyance is considered a transfer of ownership. Section 211.27a(6) of the General Property Tax Act defines "transfer of ownership" generally as the conveyance of title to or a present interest in property, the value which is substantially equal to the value of the fee interest. Section 211.27a(6) provides a variety of examples of what constitutes a transfer of ownership for taxable value uncapping purposes. Section 211.27a(7), on the other hand, contains a list of certain transfers that are exempt from the definition of "transfer of ownership" that would not result in your property's taxable value uncapping. In accordance with the Michigan Constitution as amended by Proposal A of 1994, a transfer of ownership will cause the taxable value of the transferred property to uncap in the calendar year following the year of the transfer of ownership.
Listed below are several links which may be beneficial if you are transferring ownership of a property. Click on the desired link to learn more.
To reach the State Real Estate Transfer Tax (SRETT) Special Taxes Division – Misc. Taxes & Fees, send an email to Treas_MiscTaxesFees@michigan.gov or by Fax: 517-636-4593.