Property Transfers

New Law takes effect December 31, 2013 and expanded for 2015

P.A. 497 of 2012 indicated that beginning December 31, 2013, a transfer of residential real property is not a transfer of ownership if the transferee is related to the transferor by blood or affinity to the first degree and has been expanded for 2015 to include adopted children, grandparents and grandchildren, and the use of the property does not change following the transfer of ownership. See MCL 211.27a(7)(s). (1)

See also STC Bulletin 3 of 2013 (PDF).

The FAQs information was taken from the Transfer of Ownership Guidelines published by the State Tax Commission:

View All FAQs

Property Transfer Affidavit 

  • John and Jane Doe transfer their residential real property to their daughter Judy on December 1, 2013. Is this a transfer of ownership? 
    Yes, as long as no other exemption provisions apply.
  • John and Jane Doe transfer their residential real property to their daughter Judy on January 15, 2014. Is this a transfer of ownership?
    No, as long as Judy maintains the same use of the property. MCL 211.7a(7)(s).
  • John and Jane Doe transfer their residential real property to their son Jack on March 1, 2014. Jack decides he wants to turn the house into a vacation rental home. Is this a transfer of ownership?
    Yes, as long as no other exemption provisions apply because Jack has not maintained the use of the property.

The Property Transfer Affidavit (PTA) (Form 2766) (PDF) is a result of the Proposal A reforms. The form is used to inform the local assessor of the transfer (sale, inheritance, etc.) of property. Before Proposal A, taxes were based on the Assessed Value of property. After Proposal A, a new value was added to your property entitled "Taxable Value" which is the value used to calculate your property tax bill. Proposal A "caps," or limits, the rate of increase of your property's "taxable value." The taxable value cannot rise faster than the rate of inflation (See Note) excepting value added through additions or deletions to the property) until the property is transferred. In the tax year following the transfer of the property, the taxable value will "uncap" and become equal to the current "assessed value." Assessed value represents approximately 50% of market value. In order to ensure that this "uncapping" adjustment is made on all transferred property, the law now requires the transferee (buyer, inheritor, etc.) to file this form within 45 days of the transfer.

Title companies generally make the Property Transfer Affidavit (PDF) available to buyers and sellers at the closing. However, it is in your best interest to be certain that the assessor receives these forms. You may call this office during regular business hours to check your property's status.

View Transfer of Ownership and Taxable Value Uncapping Guidelines (PDF).

Inflation Rate Multiplier (CPI)

Note: The Inflation Rate Multiplier determined by the State of Michigan for 2023 is 1.050. 

This is statewide and mandated by the State of Michigan. The Assessor does not have any control over the Inflation Rate Multiplier.

Bulletin 16 OF 2023

See Inflation Rate Information on the CPI (Current Price Index).

2024 Capped Taxable Value Formula

2024 Capped Value = (2023 Taxable Value to − Losses) × 1.050 + Additions.

Note 2: The CPI is determined by the State of Michigan and is applied to all Taxable Values in all classes of property throughout the State of Michigan. The Assessor does not have any control over this figure.

Inflation Rate Multipliers as Determined by the CPI

YearInflation Rate Multiplier
19951.026
19961.028
19971.028
19981.027
19991.016
20001.019
20011.032
20021.032
20031.015
20041.023