For Immediate Release
Feb. 27, 2014
Contact: Greg Moore
LANSING, Mich.—State Sen. Mike Nofs has introduced Senate Bill 831, which will protect individuals from increased taxes on property they inherit by will or intestate succession.
Under current Michigan law, when a property owner dies and the property transfers by will or intestate succession to another person, in most instances any homestead exemption on that property is lifted and the new owner is subject to the full 18-mill limit instead of the reduced 6-mill levy.
Nofs said this can be a tremendous burden on family members or others who are dealing with the costs of settling the estate and simply want to sell the property.
“Individuals who are already dealing with the loss of a loved one and all of the legal steps that come with it shouldn’t be further burdened with the potential for much higher taxes simply because the property transfers to them,” said Nofs, R-Battle Creek. “This will give individuals and families the necessary time to deal with these difficult matters while getting the property listed and sold.”
Under the bill, a new owner could retain an existing homestead exemption on the property for up to three years as long as the property is not occupied, is listed for sale, is not leased, and is not used for any business or commercial purpose. The owner would simply need to file a conditional rescission form with the local unit of government.
SB 831 has been referred to the Senate Finance Committee for consideration.
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