HB 5996

HOUSE BILL NO. 5996
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7yy.
the people of the state of michigan enact:
Sec. 7yy. (1)
Qualified principal residence property is exempt from the collection of taxes
under this act to the extent provided for in subsection (2).
(2) The exemption under this section is a partial exemption equal to 1
of the following:
(a) For taxes collected under this act that are levied in the first
calendar year following the transfer of ownership described in subsection
(3)(a)(ii), a reduction in taxable value equal to
67% of the qualified surplus taxable value.
(b) For taxes collected under this act that are levied in the second
calendar year following the transfer of ownership described in subsection
(3)(a)(ii), a reduction in taxable value equal to
33% of the qualified surplus taxable value.
(3) As used in this section:
(a) "Qualified principal residence property" means property
that meets all of the following:
(i) Is a principal
residence exempt from the tax levied by a local school district for school
operating purposes under section 7cc.
(ii) In the
immediately preceding calendar year or the calendar year before the immediately
preceding calendar year, was subject to a transfer of ownership that resulted
in an adjustment to taxable value under section 27a(3).
(iii) One of the
following, as applicable:
(A) For taxes collected under this act that are levied in the first
calendar year following the transfer of ownership described in subparagraph (ii), the taxable value of the property
adjusted as described in subparagraph (ii) is more than
20% greater than what the taxable value of the property would have been if the
property had not been subject to the transfer of ownership and taxable value
adjustment described in subparagraph (ii).
(B) For taxes collected under this act that are levied in the second
calendar year following the transfer of ownership described in subparagraph (ii), the taxable value of the property
adjusted as described in subparagraph (ii) is more than
20% greater than what the taxable value of the property would have been if the
property had not been subject to the transfer of ownership and taxable value
adjustment described in subparagraph (ii).
(b) "Qualified surplus taxable value" means the dollar amount
of the difference in taxable values described in subdivision (a)(iii)(A) or (B).
Enacting section 1.
This amendatory act takes effect 180 days after the date it is enacted into
law.
Enacting section 2. This amendatory act does not take
effect unless House Bill No. 6005 (request no. H06141'26) of the 103rd
Legislature is enacted into law.