Cottage Transfers of Ownership Without Uncapping Property Tax Broadened Under Michigan House Bill

Christopher Caldwell and Laura Radle at Varnum, Attorneys at Law, note that on December 27, 2012, HR-4753 was signed into law by Michigan Gov. Rick Snyder. This law prevents the uncapping of property taxes on certain transfers of residential property between individuals related by blood or affinity to the first degree. Although this law is regarded as a win for cottage owners, there is significant concerns related to the law.

The current law excludes a transfer to grandparents as being protected from an uncapping of the property taxes. In addition, the Michigan State Tax Commission has interpreted the current law to require that both a transferor and transferee be a person. Therefore, the uncapping exemption would not apply to transfers of property from a trust, a limited liability company, or a probate estate.

via Cottage Transfers of Ownership without Uncapping Property Tax Broadened Under Michigan House Bill | Varnum LLP – JDSupra.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.