Michigan House Bill HB4307

Michigan 2023-2024 Regular Session

• Introduced: 3/21/23
• Refer: 3/21/23

Caption

Property tax: assessments; determination of true cash value; modify. Amends sec. 27 of 1893 PA 206 (MCL 211.27). TIE BAR WITH: HB 4306'23

Impact

In its provisions, the bill critically emphasizes that assessors must disregard increases in value resulting from normal maintenance or repairs when determining property assessments until the property is sold. This could lead to a more stable property tax environment, as homeowners will not face immediate tax increases tied to the routine upkeep or improvements made to their properties. Furthermore, the bill directly addresses how assessors are to consider various aspects of the property, including its location and economic income, ensuring a comprehensive approach to property valuation across the state.

Summary

House Bill 4307 aims to amend the General Property Tax Act of 1893 by specifically modifying the definition of 'true cash value' for property assessments. The bill establishes that the true cash value reflects the usual selling price for a property at the time of assessment, while excluding certain types of sales such as forced sales or auctions related to liquidation. This provision intends to provide a more accurate market valuation that aligns with typical private sale prices, potentially benefitting both homeowners and assessors in fair property valuation.

Contention

Some potential points of contention surrounding HB 4307 may revolve around its implications for nonprofit housing organizations. The bill includes provisions regarding eligible nonprofit housing properties and their transfers to low-income individuals. Advocates for affordable housing may question whether these modifications support or hinder access to low-income housing as assessors will have to ensure accurate assessments for properties intended for sale to qualifying low-income individuals. The balancing act of enhancing tax accuracy while maintaining supportive measures for affordable housing will be a critical discussion point as the bill moves forward.