Michigan 2025-2026 Regular Session

Michigan House Bill HB5872

Introduced

4/22/26

Refer

4/22/26

Caption

Property tax: assessments; taxable value of transferred property; modify. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).

Impact

If enacted, HB 5872 would directly influence the taxation framework within the state, affecting assessments that determine how much property owners owe in taxes. The bill aims to modify existing statutes to create a clearer and possibly more favorable assessment for certain property transfers, which might alleviate financial burdens on homeowners. However, the bill's implications could also result in less revenue for municipalities that rely on property tax income, raising concerns about funding for public services.

Summary

House Bill 5872 addresses property tax assessments, specifically proposing modifications to the taxable value of transferred property. This bill is designed to adjust how property values are calculated during transfers, which could significantly impact both real estate transactions and property tax revenues for local governments. The intent is to ensure a more equitable tax assessment process, particularly for properties that change hands, which may lead to varied implications for property owners and buyers alike.

Contention

Discussions surrounding HB 5872 have raised notable points of contention among legislators and stakeholders. Supporters argue that the changes to the taxable value of transferred property would correct inequities in the current assessment system and promote fair treatment of property owners. In contrast, opponents question the bill's potential to undermine local government budgets and the sustainable funding of essential services. Some critics worry that without careful oversight, such adjustments could disproportionately benefit certain sectors or demographics, leading to disparities in tax responsibilities.

Companion Bills

No companion bills found.

Previously Filed As

MI HB4014

Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).

MI SB0819

Property tax: assessments; inapplicability of pop-up to taxable value resulting from interspousal transfers of ownership interests in legal entities; clarify. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).

MI HB4111

Property tax: exemptions; personal property constituting certain hydrogen fuel pumps; exempt. Amends secs. 27 & 34d of 1893 PA 206 (MCL 211.27 & 211.34d) & adds sec. 9q. TIE BAR WITH: HB 4112'25

MI HJRT

Property tax: assessments; uncapping of taxable value for certain transfers of property owned and used as a principal residence; eliminate. Amends sec. 3, art. IX of the state constitution. TIE BAR WITH: HJR T'26

MI SB0192

Property tax: exemptions; freeze of taxable value for primary residences of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7zz.

MI HB4088

Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).

MI SB0442

Property tax: exemptions; property tax exemption for certain nonprofit housing property; modify. Amends sec. 7kk of 1893 PA 206 (MCL 211.7kk).

MI HB5225

Property tax: payment and collection; eligibility for a summer property tax deferment; modify. Amends sec. 51 of 1893 PA 206 (MCL 211.51).

MI SF615

Veterans with a disability property market value property tax exclusion modification

MI HCR5024

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to establish the taxable valuation of real property used for residential purposes based on the sales price for the year in which the property transferred ownership if the transfer was sold at fair market value or valued pursuant to law as fair market value in the year in which the transfer occurred for the current owner.