House votes to spare some family property transfers from a tax bill jump

Michigan homeowners passing real estate to certain relatives would not see their taxable value reset to current market levels under a House-passed change to the state's property tax law.

The bill (HB 4014), sponsored by Rep. Slagh, narrows what triggers an "uncapping" of taxable value when property changes hands within a family, expanding the list of qualifying transfers that keep the cap intact. Supporters frame it as relief for inheritors who otherwise face large tax-bill jumps on long-held homes and farms. Local government groups worry about lost revenue.

The House amended the bill on the floor and passed it 97 to 11 on Roll Call No. 29 on March 17 with two members not voting, and gave it immediate effect. The Senate received it on March 19 and sent it to the Committee on Finance, Insurance, and Consumer Protection.

The bill awaits Senate committee action.