TRANSFER OF PROPERTY
OWNED BY TRUST
House Bill 4117
Sponsor: Rep. Stephen F. Adamini
Committee: Tax Policy
Complete to 8-26-03
A SUMMARY OF HOUSE BILL 4117 AS INTRODUCED 1-29-03
Under the General Property Tax Act, annual assessment increases on each parcel of property (adjusted for additions and losses) are limited to five percent or the rate of inflation, whichever is less. When property is subsequently transferred, the assessed value reverts to 50 percent of the true cash value (that is, to the state equalized value or SEV).
The bill would specify that the transfer of real property from a trustee of a trust to a successor trustee would not count as a transfer of ownership, if the transfer does not change the beneficiary of the trust or the beneficial use of the property.
MCL 211.27a
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.