Introduced
by
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 Committee on Commerce
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
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 by voice vote
Amendment offered
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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 53 to 54 (details)
Amendment offered
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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.
Consideration postponed
Ruling as not germane requested
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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 57 to 52 (details)
Amendment offered
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To make the moratorium on the Proposal A "pop up" provision permanent.
The amendment failed 54 to 54 (details)
Amendment offered
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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 55 to 53 (details)
Amendment offered
by
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 55 to 53 (details)
Co-sponsored by Reps.
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 by voice vote
Passed in the House 77 to 31 (details)
Referred to the Committee on Finance
