MI HB5663

Amends Section 27a of the General Property Tax Act to modify how taxable value is calculated when state equalized value (SEV) changes significantly for taxes levied in 2013 and later years.

For 2013 and beyond, if the ratio of current year SEV (minus additions) to prior year SEV (minus losses) is less than both 1.05 and the inflation rate, taxable value is calculated as the prior year taxable value minus losses plus additions, rather than using the standard cap.

Establishes that property shall be assessed at 50% of true cash value, with taxable value limited to the lesser of either the prior year value adjusted for inflation/additions or the current SEV.

Upon property transfer after 1994, the taxable value resets to the current SEV in the year following the transfer, subject to subsequent limitations under the amended rules.

The bill's effectiveness is conditioned on House Joint Resolution TT (request no. 04555'11) becoming part of the 1963 Michigan Constitution.