Adopted Tax Limitation Effective in 2010
Public Act 335 of 2010, effective December 21, 2010, has amended a Michigan property tax limitation provision to specify that, if a tax limitation election was held on August 3, 2010, the adopted limitations are first effective in 2010. The applicable provision stipulates that, except as otherwise provided, if a tax limitation election is held after April 1 in any year, the adopted limitations first take effect in the following year. The legislation makes an exception for limitations adopted at an election held on August 3, 2010.
Property Tax Notices To Be Mailed at Least 14 Days Before Board of Review Meeting
Public Act 332 of 2010 provides that beginning December 21, 2010, local Michigan property tax assessors are required to mail notices of an increase in state equalized value or taxable value at least 14 days, rather than at least 10 days, before the meeting of a board of review.
Purchase Price of Transferred Property is Presumptive True Cash Value
Public Act 340 of 2010, for purposes of keeping local Michigan property taxes affordable for low-income families who buy homes from charitable organizations, the purchase price paid in a transfer of eligible nonprofit housing property from a charitable nonprofit housing organization to a low-income person that occurs after December 31, 2010, will be the presumptive true cash value of the property transferred. In the year following the year in which the transfer takes place and each subsequent year, the taxable value of the eligible nonprofit housing property must be adjusted as provided in the applicable property tax assessment provision. Under that provision, the taxable value of a parcel of property is the lesser of its current state equalized valuation or its taxable value in the preceding year minus any losses, multiplied by the lesser of 1.05 or the inflation rate, plus all additions. Upon a transfer of ownership, the property's taxable value for the year following the year of transfer is the property's state equalized valuation for the calendar year following the transfer.
A "charitable nonprofit housing organization" is a charitable nonprofit organization whose primary purpose is the construction or renovation of residential housing for conveyance to a low-income person.
An "eligible nonprofit housing property" is property owned by a charitable nonprofit housing organization that intends to transfer ownership of the property to a low-income person after construction or renovation of the property is completed.
A "low-income person" is a person with a family income of not more than 60% of the statewide median gross income who is eligible to participate in the charitable nonprofit housing organization's program based on criteria established by the organization.