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• Introduced by Rep. Andy Meisner (D) on March 8, 2007, to authorize a temporary moratorium on the Proposal A taxable value “pop-up” for property that is sold as a homestead (principle residence), from March 1, 2007 to Sept. 1, 2008. Buyers during that period would get the same taxable value as the seller. The “pop-up” is where the state equalized value (market value) of newly-sold property becomes the basis for its property tax assessment, rather than the capped “taxable value” of the previous owner, which is lower (as long as property values have risen since the last sale.) The bill is tie barred to HB 4441 (each will only become law if the other does), which temporarily raises the real estate transfer tax from .75 percent to .85 percent, and gives the additional revenue to the local government.
  • Referred to the House Commerce Committee on March 8, 2007.
    • Reported in the House on March 13, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
  • Substitute offered in the House on March 14, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the House by voice vote on March 14, 2007.
  • Amendment offered by Rep. Kenneth Horn (R) on March 14, 2007, to NOT tie-bar the bill to House Bill 4441, meaning this bill could become law even if that one does not. HB 4441 would temporarily increase the real estate transfer tax. The amendment failed in the House (53 to 54) on March 14, 2007. [Vote Details and Comments]
  • Amendment offered by Rep. Brian Calley (R) and Rep. Bruce Caswell (R) on March 14, 2007, to revise the rules that local government property tax assessors use to establish the value of property. Under current law, assessors are able to base a property's value on "comparable sales" from the two years prior to the previous April. The amendment would change this to the one-year period prior to the previous Sept. 30. Note: The selling price of many homes in Michigan has fallen in the past year, but many assessments are still being raised because of higher-price sales in the earlier period.
    • Ruled not germane by Rep. Andy Meisner (D) on March 14, 2007, to uphold the ruling of the chair that the Calley and Caswell amendment reducing the comparable "look-back" period assessors use to determine home values for tax purposes is not "germane," meaning it introduces a new purpose to the bill, and is therefore not a proper amendment. The ruling passed in the House (57 to 52) on March 14, 2007. [Vote Details and Comments]
  • Amendment offered by Rep. Jacob Hoogendyk, Jr. (R) on March 14, 2007, to make the moratorium on the Proposal A "pop up" provision permanent. The amendment failed in the House (54 to 54) on March 14, 2007. [Vote Details and Comments]
  • Amendment offered by Rep. Jacob Hoogendyk, Jr. (R) on March 14, 2007, to revise the rules that local government property tax assessors use to establish the value of property. Under current law, assessments are established at 50 percent of a property's "true cash value." The amendment would change this to 45 percent. The amendment failed in the House (55 to 53) on March 14, 2007. [Vote Details and Comments]
  • Amendment offered by Rep. Tim Moore (R) on March 14, 2007, to leave the moratorium on the Proposal A "pop up" provision in effect as long as Michigan's unemployment rate is higher than the national rate. The latest figures when the bill was passed were that the Michigan rate was 6.9 percent and the national rate was 4.6 percent. The amendment failed in the House (55 to 53) on March 14, 2007. [Vote Details and Comments]
  • Amendment offered by Rep. Edward Gaffney (R), Rep. David Law (R) and Rep. Kimberly Meltzer (R) on March 14, 2007, to tie-bar the bill to House Bill 4215, meaning this bill cannot become law unless that one does also. HB 4215 would allow an individual who has moved into a new principle residence and not yet been able to sell his or her previous residence, to claim the Proposal A principle residence (homestead) tax exemption on both properties for up to three years, or until the previous residence is sold (if it is vacant). The amendment passed in the House by voice vote on March 14, 2007.
• Passed in the House (77 to 31) on March 14, 2007. [Vote Details and Comments]
• Received in the Senate on March 15, 2007.
  • Referred to the Senate Finance Committee on March 15, 2007.