Recent changes to Michigan law will make it easier to transfer a cottage to an eligible family member without losing the homes property tax cap. “In 1994 the Michigan legislature adopted “Proposal A” which effectively “caps” an owner’s property tax liability.” The cap means that the property tax liability does not increase with the home’s fair market value. The problem was that the cap was removed when ownership of the property was transferred, which meant the new owners would be given a new assessment that could potentially lead to substantially higher property tax liabilities. The new law will keep the cap in place when a person transfers the property to an eligible family member. This will make it easier for people to keep their cottages in the family after they die.
See Jeffrey D. Koelzer, Cottage Owners, Relax: New Law Can Help Keep The Family Cottage In The Family, The National Law Review, June 24, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
