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
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.