Bill Text: MI HB5377 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Property tax; assessments; taxable value upon transfer of ownership of principal residence; revise adjustment. Amends secs. 2, 27 & 27a of 1893 PA 206 (MCL 211.2 et seq.).

Spectrum: Partisan Bill (Republican 12-0)

Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5377 Detail]

Download: Michigan-2009-HB5377-Introduced.html

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HOUSE BILL No. 5377

 

September 17, 2009, Introduced by Reps. Genetski, Haines, Lund, McMillin, Rick Jones, Agema, Meltzer, Bolger, Tyler, Knollenberg, Pavlov and Haveman and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 2, 27, and 27a (MCL 211.2, 211.27, and

 

211.27a), section 2 as amended by 2002 PA 620, section 27 as

 

amended by 2003 PA 274, and section 27a as amended by 2008 PA 506.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) For the purpose of taxation, real property

 

includes all of the following:

 

     (a) All land within this state, all buildings and fixtures on

 

the land, and all appurtenances to the land, except as expressly

 

exempted by law.

 

     (b) All real property owned by this state or purchased or

 

condemned for public highway purposes by any board, officer,

 

commission, or department of this state and sold on land contract,

 

notwithstanding the fact that the deed has not been executed

 

transferring title.

 

     (c) For taxes levied after December 31, 2002, buildings and

 

improvements located upon leased real property, except buildings

 

and improvements exempt under section 9f or improvements assessable

 

under section 8(h), if the value of the buildings or improvements

 

is not otherwise included in the assessment of the real property.

 

However, buildings and improvements located on leased real property

 

shall not be treated as real property unless they would be treated

 

as real property if they were located on real property owned by the

 

taxpayer.

 

     (2) The Except as otherwise provided in section 27a, the

 

taxable status of persons and real and personal property for a tax

 

year shall be determined as of each December 31 of the immediately

 

preceding year, which is considered the tax day, any provisions in

 

the charter of any city or village to the contrary notwithstanding.

 

An assessing officer is not restricted to any particular period in

 

the preparation of the assessment roll but may survey, examine, or

 

review property at any time before or after the tax day.

 

     (3) Notwithstanding a provision to the contrary in any law, if

 

real property is acquired for public purposes by purchase or

 

condemnation, all general property taxes, but not penalties, levied

 

during the 12 months immediately preceding, but not including, the

 

day title passes to the public agency shall be prorated in

 

accordance with this subsection. The seller or condemnee is

 

responsible for the portion of taxes from the levy date or dates

 

to, but not including, the day title passes and the public agency

 

is responsible for the remainder of the taxes. If the date that

 

title will pass cannot be ascertained definitely and an agreement

 

in advance to prorate taxes is desirable, an estimated date for the

 

passage of title may be agreed to. In the absence of an agreement,

 

the public agency shall compute the proration of taxes as of the

 

date title passes. The question of proration of taxes shall not be

 

considered in any condemnation proceeding. As used in this

 

subsection, "levy date" means the day on which general property

 

taxes become due and payable. In addition to the portion of taxes

 

for which the public agency is responsible under the provisions of

 

this subsection, the public agency is also responsible for all

 

general property taxes levied on or after the date title passes and

 

before the property is removed from the tax rolls.

 

     (4) In a real estate transaction between private parties in

 

the absence of an agreement to the contrary, the seller is

 

responsible for that portion of the annual taxes levied during the

 

12 months immediately preceding, but not including, the day title

 

passes, from the levy date or dates to, but not including, the day

 

title passes and the buyer is responsible for the remainder of the

 

annual taxes. As used in this subsection, "levy date" means the day

 

on which a general property tax becomes due and payable.

 

     Sec. 27. (1) As used in this act, "true cash value" means the

 

usual selling price at the place where the property to which the

 

term is applied is at the time of assessment, being the price that

 

could be obtained for the property at private sale, and not at

 

auction sale except as otherwise provided in this section, or at

 

forced sale. The usual selling price may include sales at public

 

auction held by a nongovernmental agency or person if those sales

 

have become a common method of acquisition in the jurisdiction for

 

the class of property being valued. The usual selling price does

 

not include sales at public auction if the sale is part of a

 

liquidation of the seller's assets in a bankruptcy proceeding or if

 

the seller is unable to use common marketing techniques to obtain

 

the usual selling price for the property. A sale or other

 

disposition by this state or an agency or political subdivision of

 

this state of land acquired for delinquent taxes or an appraisal

 

made in connection with the sale or other disposition or the value

 

attributed to the property of regulated public utilities by a

 

governmental regulatory agency for rate-making purposes is not

 

controlling evidence of true cash value for assessment purposes. In

 

determining the true cash value, the assessor shall also consider

 

the advantages and disadvantages of location; quality of soil;

 

zoning; existing use; present economic income of structures,

 

including farm structures; present economic income of land if the

 

land is being farmed or otherwise put to income producing use;

 

quantity and value of standing timber; water power and privileges;

 

and mines, minerals, quarries, or other valuable deposits known to

 

be available in the land and their value. In determining the true

 

cash value of personal property owned by an electric utility

 

cooperative, the assessor shall consider the number of kilowatt

 

hours of electricity sold per mile of distribution line compared to

 

the average number of kilowatt hours of electricity sold per mile

 

of distribution line for all electric utilities.

 

     (2) The assessor shall not consider the increase in true cash

 

value that is a result of expenditures for normal repairs,

 

replacement, and maintenance in determining the true cash value of

 

property for assessment purposes until the property is sold. For

 

the purpose of implementing this subsection, the assessor shall not

 

increase the construction quality classification or reduce the

 

effective age for depreciation purposes, except if the appraisal of

 

the property was erroneous before nonconsideration of the normal

 

repair, replacement, or maintenance, and shall not assign an

 

economic condition factor to the property that differs from the

 

economic condition factor assigned to similar properties as defined

 

by appraisal procedures applied in the jurisdiction. The increase

 

in value attributable to the items included in subdivisions (a) to

 

(o) that is known to the assessor and excluded from true cash value

 

shall be indicated on the assessment roll. This subsection applies

 

only to residential property. The following repairs are considered

 

normal maintenance if they are not part of a structural addition or

 

completion:

 

     (a) Outside painting.

 

     (b) Repairing or replacing siding, roof, porches, steps,

 

sidewalks, or drives.

 

     (c) Repainting, repairing, or replacing existing masonry.

 

     (d) Replacing awnings.

 

     (e) Adding or replacing gutters and downspouts.

 

     (f) Replacing storm windows or doors.

 

     (g) Insulating or weatherstripping.

 

     (h) Complete rewiring.

 

     (i) Replacing plumbing and light fixtures.

 

     (j) Replacing a furnace with a new furnace of the same type or

 

replacing an oil or gas burner.

 

     (k) Repairing plaster, inside painting, or other redecorating.

 

     (l) New ceiling, wall, or floor surfacing.

 

     (m) Removing partitions to enlarge rooms.

 

     (n) Replacing an automatic hot water heater.

 

     (o) Replacing dated interior woodwork.

 

     (3) A city or township assessor, a county equalization

 

department, or the state tax commission before utilizing real

 

estate sales data on real property purchases, including purchases

 

by land contract, to determine assessments or in making sales ratio

 

studies to assess property or equalize assessments shall exclude

 

from the sales data the following amounts allowed by subdivisions

 

(a), (b), and (c) to the extent that the amounts are included in

 

the real property purchase price and are so identified in the real

 

estate sales data or certified to the assessor as provided in

 

subdivision (d):

 

     (a) Amounts paid for obtaining financing of the purchase price

 

of the property or the last conveyance of the property.

 

     (b) Amounts attributable to personal property that were

 

included in the purchase price of the property in the last

 

conveyance of the property.

 

     (c) Amounts paid for surveying the property pursuant to the

 

last conveyance of the property. The legislature may require local

 

units of government, including school districts, to submit reports

 

of revenue lost under subdivisions (a) and (b) and this subdivision

 

so that the state may reimburse those units for that lost revenue.

 

     (d) The purchaser of real property, including a purchaser by

 

land contract, may file with the assessor of the city or township

 

in which the property is located 2 copies of the purchase agreement

 

or of an affidavit that identifies the amount, if any, for each

 

item listed in subdivisions (a) to (c). One copy shall be forwarded

 

by the assessor to the county equalization department. The

 

affidavit shall be prescribed by the state tax commission.

 

     (4) As used in subsection (1), "present economic income" means

 

for leased or rented property the ordinary, general, and usual

 

economic return realized from the lease or rental of property

 

negotiated under current, contemporary conditions between parties

 

equally knowledgeable and familiar with real estate values. The

 

actual income generated by the lease or rental of property is not

 

the controlling indicator of its true cash value in all cases. This

 

subsection does not apply to property subject to a lease entered

 

into before January 1, 1984 for which the terms of the lease

 

governing the rental rate or tax liability have not been

 

renegotiated after December 31, 1983. This subsection does not

 

apply to a nonprofit housing cooperative subject to regulatory

 

agreements between the state or federal government entered into

 

before January 1, 1984. As used in this subsection, "nonprofit

 

cooperative housing corporation" means a nonprofit cooperative

 

housing corporation that is engaged in providing housing services

 

to its stockholders and members and that does not pay dividends or

 

interest upon stock or membership investment but that does

 

distribute all earnings to its stockholders or members.

 

     (5) Beginning December 31, 1994, the The purchase price paid

 

in a transfer of property is not the presumptive true cash value of

 

the property transferred. In determining the true cash value of

 

transferred property, an assessing officer shall assess that

 

property using the same valuation method used to value all other

 

property of that same classification in the assessing jurisdiction.

 

As used in this subsection, "purchase price" means the total

 

consideration agreed to in an arms-length arm's-length transaction

 

and not at a forced sale paid by the purchaser of the property,

 

stated in dollars, whether or not paid in dollars.

 

     (6) For purposes of a statement submitted under section 19,

 

the true cash value of a standard tool is the net book value of

 

that standard tool as of December 31 in each tax year as determined

 

using generally accepted accounting principles in a manner

 

consistent with the established depreciation method used by the

 

person submitting that statement. The net book value of a standard

 

tool for federal income tax purposes is not the presumptive true

 

cash value of that standard tool. As used in this subsection,

 

"standard tool" means that term as defined in section 9b.

 

     Sec. 27a. (1) Except as otherwise provided in this section,

 

property shall be assessed at 50% of its true cash value under

 

section 3 of article IX of the state constitution of 1963.

 

     (2) Except as otherwise provided in subsection (3), for taxes

 

levied in 1995 and for each year after 1995, the taxable value of

 

each parcel of property is the lesser of the following:

 

     (a) The property's taxable value in the immediately preceding

 

year minus any losses, multiplied by the lesser of 1.05 or the

 

inflation rate, plus all additions. For taxes levied in 1995, the

 

property's taxable value in the immediately preceding year is the

 

property's state equalized valuation in 1994.

 

     (b) The property's current state equalized valuation.

 

     (3) Upon a transfer of ownership of property after 1994, the

 

property's taxable value for the calendar year following the year

 

of the transfer is the property's state equalized valuation for the

 

calendar year following the transfer. However, notwithstanding tax

 

day as described in section 2, upon a transfer of ownership of

 

property for which an exemption as a principal residence is claimed

 

under section 7cc after the effective date of the amendatory act

 

that added this sentence and before January 1, 2015, the taxable

 

value of that property shall be adjusted in the year that the

 

property is transferred. If adjustment of the property's taxable

 

value under this section results in an overpayment, a rebate,

 

including any interest paid, shall be made to the taxpayer by the

 

local tax collecting unit.

 

     (4) If the taxable value of property is adjusted under

 

subsection (3), a subsequent increase in the property's taxable

 

value is subject to the limitation set forth in subsection (2)

 

until a subsequent transfer of ownership occurs. If the taxable

 

value of property is adjusted under subsection (3) and the assessor

 

determines that there had not been a transfer of ownership, the

 

taxable value of the property shall be adjusted at the July or

 

December board of review. Notwithstanding the limitation provided

 

in section 53b(1) on the number of years for which a correction may

 

be made, the July or December board of review may adjust the

 

taxable value of property under this subsection for the current

 

year and for the 3 immediately preceding calendar years. A

 

corrected tax bill shall be issued for each tax year for which the

 

taxable value is adjusted by the local tax collecting unit if the

 

local tax collecting unit has possession of the tax roll or by the

 

county treasurer if the county has possession of the tax roll. For

 

purposes of section 53b, an adjustment under this subsection shall

 

be considered the correction of a clerical error.

 

     (5) Assessment of property, as required in this section and

 

section 27, is inapplicable to the assessment of property subject

 

to the levy of ad valorem taxes within voted tax limitation

 

increases to pay principal and interest on limited tax bonds issued

 

by any governmental unit, including a county, township, community

 

college district, or school district, before January 1, 1964, if

 

the assessment required to be made under this act would be less

 

than the assessment as state equalized prevailing on the property

 

at the time of the issuance of the bonds. This inapplicability

 

shall continue until levy of taxes to pay principal and interest on

 

the bonds is no longer required. The assessment of property

 

required by this act shall be applicable for all other purposes.

 

     (6) As used in this act, "transfer of ownership" means the

 

conveyance of title to or a present interest in property, including

 

the beneficial use of the property, the value of which is

 

substantially equal to the value of the fee interest. Transfer of

 

ownership of property includes, but is not limited to, the

 

following:

 

     (a) A conveyance by deed.

 

     (b) A conveyance by land contract. The taxable value of

 

property conveyed by a land contract executed after December 31,

 

1994 shall be adjusted under subsection (3) for the calendar year

 

following the year in which the contract is entered into and shall

 

not be subsequently adjusted under subsection (3) when the deed

 

conveying title to the property is recorded in the office of the

 

register of deeds in the county in which the property is located.

 

     (c) A conveyance to a trust after December 31, 1994, except if

 

the settlor or the settlor's spouse, or both, conveys the property

 

to the trust and the sole present beneficiary or beneficiaries are

 

the settlor or the settlor's spouse, or both.

 

     (d) A conveyance by distribution from a trust, except if the

 

distributee is the sole present beneficiary or the spouse of the

 

sole present beneficiary, or both.

 

     (e) A change in the sole present beneficiary or beneficiaries

 

of a trust, except a change that adds or substitutes the spouse of

 

the sole present beneficiary.

 

     (f) A conveyance by distribution under a will or by intestate

 

succession, except if the distributee is the decedent's spouse.

 

     (g) A conveyance by lease if the total duration of the lease,

 

including the initial term and all options for renewal, is more

 

than 35 years or the lease grants the lessee a bargain purchase

 

option. As used in this subdivision, "bargain purchase option"

 

means the right to purchase the property at the termination of the

 

lease for not more than 80% of the property's projected true cash

 

value at the termination of the lease. After December 31, 1994, the

 

taxable value of property conveyed by a lease with a total duration

 

of more than 35 years or with a bargain purchase option shall be

 

adjusted under subsection (3) for the calendar year following the

 

year in which the lease is entered into. This subdivision does not

 

apply to personal property except buildings described in section

 

14(6) and personal property described in section 8(h), (i), and

 

(j). This subdivision does not apply to that portion of the

 

property not subject to the leasehold interest conveyed.

 

     (h) A conveyance of an ownership interest in a corporation,

 

partnership, sole proprietorship, limited liability company,

 

limited liability partnership, or other legal entity if the

 

ownership interest conveyed is more than 50% of the corporation,

 

partnership, sole proprietorship, limited liability company,

 

limited liability partnership, or other legal entity. Unless

 

notification is provided under subsection (10), the corporation,

 

partnership, sole proprietorship, limited liability company,

 

limited liability partnership, or other legal entity shall notify

 

the assessing officer on a form provided by the state tax

 

commission not more than 45 days after a conveyance of an ownership

 

interest that constitutes a transfer of ownership under this

 

subdivision.

 

     (i) A transfer of property held as a tenancy in common, except

 

that portion of the property not subject to the ownership interest

 

conveyed.

 

     (j) A conveyance of an ownership interest in a cooperative

 

housing corporation, except that portion of the property not

 

subject to the ownership interest conveyed.

 

     (7) Transfer of ownership does not include the following:

 

     (a) The transfer of property from 1 spouse to the other spouse

 

or from a decedent to a surviving spouse.

 

     (b) A transfer from a husband, a wife, or a husband and wife

 

creating or disjoining a tenancy by the entireties in the grantors

 

or the grantor and his or her spouse.

 

     (c) A transfer of that portion of property subject to a life

 

estate or life lease retained by the transferor, until expiration

 

or termination of the life estate or life lease. That portion of

 

property transferred that is not subject to a life lease shall be

 

adjusted under subsection (3).

 

     (d) A transfer through foreclosure or forfeiture of a recorded

 

instrument under chapter 31, 32, or 57 of the revised judicature

 

act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701

 

to 600.5759, or through deed or conveyance in lieu of a foreclosure

 

or forfeiture, until the mortgagee or land contract vendor

 

subsequently transfers the property. If a mortgagee does not

 

transfer the property within 1 year of the expiration of any

 

applicable redemption period, the property shall be adjusted under

 

subsection (3).

 

     (e) A transfer by redemption by the person to whom taxes are

 

assessed of property previously sold for delinquent taxes.

 

     (f) A conveyance to a trust if the settlor or the settlor's

 

spouse, or both, conveys the property to the trust and the sole

 

present beneficiary of the trust is the settlor or the settlor's

 

spouse, or both.

 

     (g) A transfer pursuant to a judgment or order of a court of

 

record making or ordering a transfer, unless a specific monetary

 

consideration is specified or ordered by the court for the

 

transfer.

 

     (h) A transfer creating or terminating a joint tenancy between

 

2 or more persons if at least 1 of the persons was an original

 

owner of the property before the joint tenancy was initially

 

created and, if the property is held as a joint tenancy at the time

 

of conveyance, at least 1 of the persons was a joint tenant when

 

the joint tenancy was initially created and that person has

 

remained a joint tenant since the joint tenancy was initially

 

created. A joint owner at the time of the last transfer of

 

ownership of the property is an original owner of the property. For

 

purposes of this subdivision, a person is an original owner of

 

property owned by that person's spouse.

 

     (i) A transfer for security or an assignment or discharge of a

 

security interest.

 

     (j) A transfer of real property or other ownership interests

 

among members of an affiliated group. As used in this subsection,

 

"affiliated group" means 1 or more corporations connected by stock

 

ownership to a common parent corporation. Upon request by the state

 

tax commission, a corporation shall furnish proof within 45 days

 

that a transfer meets the requirements of this subdivision. A

 

corporation that fails to comply with a request by the state tax

 

commission under this subdivision is subject to a fine of $200.00.

 

     (k) Normal public trading of shares of stock or other

 

ownership interests that, over any period of time, cumulatively

 

represent more than 50% of the total ownership interest in a

 

corporation or other legal entity and are traded in multiple

 

transactions involving unrelated individuals, institutions, or

 

other legal entities.

 

     (l) A transfer of real property or other ownership interests

 

among corporations, partnerships, limited liability companies,

 

limited liability partnerships, or other legal entities if the

 

entities involved are commonly controlled. Upon request by the

 

state tax commission, a corporation, partnership, limited liability

 

company, limited liability partnership, or other legal entity shall

 

furnish proof within 45 days that a transfer meets the requirements

 

of this subdivision. A corporation, partnership, limited liability

 

company, limited liability partnership, or other legal entity that

 

fails to comply with a request by the state tax commission under

 

this subdivision is subject to a fine of $200.00.

 

     (m) A direct or indirect transfer of real property or other

 

ownership interests resulting from a transaction that qualifies as

 

a tax-free reorganization under section 368 of the internal revenue

 

code, 26 USC 368. Upon request by the state tax commission, a

 

property owner shall furnish proof within 45 days that a transfer

 

meets the requirements of this subdivision. A property owner who

 

fails to comply with a request by the state tax commission under

 

this subdivision is subject to a fine of $200.00.

 

     (n) A transfer of qualified agricultural property, if the

 

person to whom the qualified agricultural property is transferred

 

files an affidavit with the assessor of the local tax collecting

 

unit in which the qualified agricultural property is located and

 

with the register of deeds for the county in which the qualified

 

agricultural property is located attesting that the qualified

 

agricultural property shall remain qualified agricultural property.

 

The affidavit under this subdivision shall be in a form prescribed

 

by the department of treasury. An owner of qualified agricultural

 

property shall inform a prospective buyer of that qualified

 

agricultural property that the qualified agricultural property is

 

subject to the recapture tax provided in the agricultural property

 

recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the

 

qualified agricultural property is converted by a change in use. If

 

property ceases to be qualified agricultural property at any time

 

after being transferred, all of the following shall occur:

 

     (i) The taxable value of that property shall be adjusted under

 

subsection (3) as of the December 31 in the year that the property

 

ceases to be qualified agricultural property.

 

     (ii) The property is subject to the recapture tax provided for

 

under the agricultural property recapture act, 2000 PA 261, MCL

 

211.1001 to 211.1007.

 

     (o) A transfer of qualified forest property, if the person to

 

whom the qualified forest property is transferred files an

 

affidavit with the assessor of the local tax collecting unit in

 

which the qualified forest property is located and with the

 

register of deeds for the county in which the qualified forest

 

property is located attesting that the qualified forest property

 

shall remain qualified forest property. The affidavit under this

 

subdivision shall be in a form prescribed by the department of

 

treasury. An owner of qualified forest property shall inform a

 

prospective buyer of that qualified forest property that the

 

qualified forest property is subject to the recapture tax provided

 

in the qualified forest property recapture tax act, 2006 PA 379,

 

MCL 211.1031 to 211.1036, if the qualified forest property is

 

converted by a change in use. If property ceases to be qualified

 

forest property at any time after being transferred, all of the

 

following shall occur:

 

     (i) The taxable value of that property shall be adjusted under

 

subsection (3) as of the December 31 in the year that the property

 

ceases to be qualified forest property.

 

     (ii) The property is subject to the recapture tax provided for

 

under the qualified forest property recapture tax act, 2006 PA 379,

 

MCL 211.1031 to 211.1036.

 

     (p) Beginning on the effective date of the amendatory act that

 

added this subdivision, a transfer of land, but not buildings or

 

structures located on the land, which meets 1 or more of the

 

following requirements:

 

     (i) The land is subject to a conservation easement under

 

subpart 11 of part 21 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in

 

this subparagraph, "conservation easement" means that term as

 

defined in section 2140 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2140.

 

     (ii) A transfer of ownership of the land or a transfer of an

 

interest in the land is eligible for a deduction as a qualified

 

conservation contribution under section 170(h) of the internal

 

revenue code, 26 USC 170.

 

     (q) A transfer of real property or other ownership interests

 

resulting from a consolidation or merger of a domestic nonprofit

 

corporation that is a boy or girl scout or camp fire girls

 

organization, a 4-H club or foundation, a young men's Christian

 

association, or a young women's Christian association and at least

 

50% of the members of that organization or association are

 

residents of this state.

 

     (8) If all of the following conditions are satisfied, the

 

local tax collecting unit shall revise the taxable value of

 

qualified agricultural property taxable on the tax roll in the

 

possession of that local tax collecting unit to the taxable value

 

that qualified agricultural property would have had if there had

 

been no transfer of ownership of that qualified agricultural

 

property since December 31, 1999 and there had been no adjustment

 

of that qualified agricultural property's taxable value under

 

subsection (3) since December 31, 1999:

 

     (a) The qualified agricultural property was qualified

 

agricultural property for taxes levied in 1999 and each year after

 

1999.

 

     (b) The owner of the qualified agricultural property files an

 

affidavit with the assessor of the local tax collecting unit under

 

subsection (7)(n).

 

     (9) If the taxable value of qualified agricultural property is

 

adjusted under subsection (8), the owner of that qualified

 

agricultural property shall not be entitled to a refund for any

 

property taxes collected under this act on that qualified

 

agricultural property before the adjustment under subsection (8).

 

     (10) The register of deeds of the county where deeds or other

 

title documents are recorded shall notify the assessing officer of

 

the appropriate local taxing unit not less than once each month of

 

any recorded transaction involving the ownership of property and

 

shall make any recorded deeds or other title documents available to

 

that county's tax or equalization department. Unless notification

 

is provided under subsection (6), the buyer, grantee, or other

 

transferee of the property shall notify the appropriate assessing

 

office in the local unit of government in which the property is

 

located of the transfer of ownership of the property within 45 days

 

of the transfer of ownership, on a form prescribed by the state tax

 

commission that states the parties to the transfer, the date of the

 

transfer, the actual consideration for the transfer, and the

 

property's parcel identification number or legal description. Forms

 

filed in the assessing office of a local unit of government under

 

this subsection shall be made available to the county tax or

 

equalization department for the county in which that local unit of

 

government is located. This subsection does not apply to personal

 

property except buildings described in section 14(6) and personal

 

property described in section 8(h), (i), and (j).

 

     (11) As used in this section:

 

     (a) "Additions" means that term as defined in section 34d.

 

     (b) "Beneficial use" means the right to possession, use, and

 

enjoyment of property, limited only by encumbrances, easements, and

 

restrictions of record.

 

     (c) "Converted by a change in use" means that term as defined

 

in the agricultural property recapture act, 2000 PA 261, MCL

 

211.1001 to 211.1007.

 

     (d) "Inflation rate" means that term as defined in section

 

34d.

 

     (e) "Losses" means that term as defined in section 34d.

 

     (f) "Qualified agricultural property" means that term as

 

defined in section 7dd.

 

     (g) "Qualified forest property" means that term as defined in

 

section 7jj[1].