House Bill 4306 Summary

• Replaces mandatory language ("shall") with permissive language ("must") throughout section 27a of the General Property Tax Act for consistency and modernization.

• Adds a new calculation method for taxable value that includes a "rolling average inflation rate" option, defined as the average of the 3 most recent annual inflation rates, allowing property owners to use the lesser of 1.05, the inflation rate, or the rolling average inflation rate.

• Defines "rolling average inflation rate" as a new term in the statute's definitions section for use in calculating annual taxable value adjustments.

• Updates various statutory references and definitions to clarify transfer of ownership rules, exemptions, and procedures related to agricultural property, forest property, and residential real property transfers between family members.