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2014 House Bill 5552: Exempt decedent’s property transfer to family from assessment “bump up”

Public Act 310 of 2014

Introduced by Rep. Peter Pettalia (R) on May 8, 2014 To exempt the transfer of residential property from a decedent to a trust whose beneficiaries are members of the decedent’s family from the taxable value “bump up,” wherein the new basis for property tax assessments becomes the property’s state equalized value (market value), rather than the capped “taxable value” of the previous owner. The exemption would apply when there is no change to the use of the property.   Official Text and Analysis.
Referred to the House Tax Policy Committee on May 8, 2014
Reported in the House on June 4, 2014 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Amendment offered by Rep. Vicki Barnett (D) on June 5, 2014 To define "spouse" in the bill as "any person in a marital relationship legally recognized" in any other state, which would include states that recognize homosexual marriage.
The amendment failed by voice vote in the House on June 5, 2014
Amendment offered by Rep. Douglas Geiss (D) on June 5, 2014 To also exempt from the taxable value "bump up" a principle residence that was acquired to replace another principle residence in the same county that was taken under eminent domain.
The amendment failed by voice vote in the House on June 5, 2014
Passed 77 to 31 in the House on June 5, 2014 (same description)
To exempt the transfer of residential property from a decedent to a trust whose beneficiaries are members of the decedent’s family from the taxable value “bump up,” wherein the new basis for property tax assessments becomes the property’s state equalized value (market value), rather than the capped “taxable value” of the previous owner. The exemption would apply when there is no change to the use of the property.
Received in the Senate on June 10, 2014
Referred to the Senate Finance Committee on June 10, 2014
Reported in the Senate on October 2, 2014 With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Amendment offered in the Senate on October 2, 2014 To revise language in the bill clarify that the proposed provisions apply to an individual to whom the property is transferred.
The amendment passed by voice vote in the Senate on October 2, 2014
Passed 26 to 12 in the Senate on October 2, 2014 (same description)
To exempt the transfer of residential property from a decedent to a trust whose beneficiaries are members of the decedent’s family from the taxable value “bump up,” wherein the new basis for property tax assessments becomes the property’s state equalized value (market value), rather than the capped “taxable value” of the previous owner. The exemption would apply when there is no change to the use of the property.
Received in the House on October 2, 2014
Passed 77 to 30 in the House on October 2, 2014 To concur with the Senate-passed version of the bill.
Signed by Gov. Rick Snyder on October 9, 2014

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