HB 6420 Summary

• Amends Michigan's General Property Tax Act (1893 PA 206) Section 27a to modify property assessment and taxable value calculation procedures.

• Property shall be assessed at 50% of true cash value; taxable value limited to lesser of prior year value (increased by 5% or inflation rate, whichever is lower) plus additions, or current state equalized valuation.

• Upon property ownership transfer after 1994, taxable value resets to current state equalized valuation for the following calendar year, with specified exceptions for transfers between spouses, trusts, family members, and certain business entities.

• Establishes procedures for correcting erroneous transfer-based assessments, allowing boards of review to adjust taxable values retroactively for current year and 3 preceding years without normal limitation restrictions.

• Effective retroactively for taxes levied after December 31, 2008; includes numerous exemptions from transfer-based reassessment including agricultural and forest property transfers with proper affidavits, conservation easements, and certain corporate reorganizations.