PROP. TAX: INCORRECT UNCAPPING H.B. 4065 (H-1): FLOOR ANALYSIS




House Bill 4065 (Substitute H-1 as reported without amendment)
Sponsor: Representative Bruce Caswell
House Committee: Tax Policy
Senate Committee: Finance

CONTENT
The bill would amend the General Property Tax Act to specify that, if the taxable value of property were adjusted to the property's State equalized valuation (or uncapped) following a transfer of ownership and the assessor determined that there had not been a transfer of ownership, the taxable value of the property would have to be readjusted at the July or December meeting of the board of review.


The bill specifies that, notwithstanding the limitation provided in Section 53b(1) of the Act on the number of years for which a correction may be made, the July or December board of review could correct the taxable value of property for the current year and for the immediately preceding calendar year. (Under Section 53b(1), corrections for clerical errors may be made only in the year in which the error was made or the following year.)

A corrected bill would have to be issued for each tax year for which the taxable value was adjusted by the local tax collecting unit if it had possession of the tax roll, or by the county treasurer if the county had possession of the tax roll. For the purposes of Section 53b (which addresses procedures for correcting clerical errors), the adjustment would be considered the correction of a clerical error.


MCL 211.27a Legislative Analyst: J.P. Finet

FISCAL IMPACT
The bill would have a negligible impact on State and local revenue.


Date Completed: 4-28-05 Fiscal Analyst: David Zin


floor\hb4065 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4065/0506