2014 House Bill 5552 / Public Act 310

Exempt decedent’s property transfer to family from assessment “bump up”

Introduced in the House

May 8, 2014

Introduced by Rep. Peter Pettalia (R-106)

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.

Referred to the Committee on Tax Policy

June 4, 2014

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

June 5, 2014

Amendment offered by Rep. Vicki Barnett (D-37)

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

Amendment offered by Rep. Douglas Geiss (D-12)

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

Passed in the House 77 to 31 (details)

Received in the Senate

June 10, 2014

Referred to the Committee on Finance

Oct. 2, 2014

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Amendment offered

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

Passed in the Senate 26 to 12 (details)

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

Oct. 2, 2014

Passed in the House 77 to 30 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

Oct. 9, 2014