House Bill 4213 Summary

• Amends Michigan's general property tax law to adjust how property taxable values are calculated when there is a significant change in state equalized value (SEV) between consecutive years, effective for taxes levied in 2014 and after.

• Creates a new limitation on taxable value increases: 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 prior year value minus losses plus additions instead of using the standard 5% cap.

• Expands exemptions from transfer of ownership recognition for residential real property transfers to certain family members beginning December 31, 2014, including transfers to parents, siblings, children, and grandchildren if the property remains residential and non-commercial.

• Requires persons receiving residential real property through family transfers to provide proof of family relationship to the Department of Treasury or assessor within 30 days upon request, with $200 fines for non-compliance.

• Makes the bill conditional on passage of a constitutional amendment (HJR I or SJR) to the 1963 Michigan Constitution before taking effect.