Proposal "A" eliminated the double digit increases in property taxes by placing an annual limit on any increase to 5% or the rate of inflation, whichever was less. All properties still have an assessed value, which is still 50% of market value. Assessed values can still increase by more than 5%. However, we now base property taxes on taxable value. The limit or cap on increases in taxable value remains in effect each year, except in the year after the property's ownership is transferred. In that case, we increase the taxable value to equal the assessed value. The taxable value can be affected by new construction and demolitions, but it can never be greater than the assessed value.
The Transfer Affidavit Form must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed). It is used by the assessor to ensure the property is assessed properly and receives the correct taxable value. It must be filed by the new owner with the assessor for the city or township where the property is located within 45 days of the transfer. If the Property Transfer Affidavit is not timely filed, a statutory penalty applies. For more information download the Transfer Affidavit Form and Instructions.
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