HB 5926 Summary

• Modifies the definition of "transfer of ownership" under Michigan's property tax assessment law to exclude certain family transfers of residential real property beginning December 31, 2014.

• Exempts transfers of residential real property to the transferor's or spouse's mother, father, brother, sister, son, daughter, adopted child, or grandchild from triggering taxable value reassessment, provided the property is not used for commercial purposes.

• Extends similar exemptions to transfers through trusts, wills, and intestate succession when beneficiaries or distributees are qualifying family members of the settlor or decedent.

• Expands exemptions for transfers of property subject to life estates or life leases when the remainder passes to qualifying family members, the transferor's spouse, or trusts with qualifying beneficiaries.

• Requires transferees claiming family relationship exemptions to furnish proof to the Department of Treasury or assessor within 30 days upon request, with a $200 penalty for non-compliance.