FAILURE TO NOTIFY OF PROP. TRANSFER H.B. 4860 (H-1):
FLOOR SUMMARY
House Bill 4860 (Substitute H-1 as reported without amendment)
Sponsor: Representative Jim Stamas
CONTENT
The bill would amend the General Property Tax Act to increase the penalty for failure to notify the local assessor of the transfer of ownership of industrial or commercial property.
The Act requires a buyer, grantee, or other transferee of property to notify the appropriate local assessing office within 45 days of the transfer of ownership. A buyer, grantee, or other transferee who fails to give this notice is liable for additional taxes; interest and penalty; and a separate penalty of $5 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum of $200.
Under the bill, this $200-maximum penalty would apply with respect to real property other than property classified as industrial real property or commercial real property. For industrial or commercial real property, the penalty would be as follows.
If the sale price of the property transferred were $100.0 million or less, the penalty would be $20 per day for each separate failure beginning after the 45 days had elapsed, up to a maximum of $1,000.
If the sale price were more than $100.0 million, the penalty would be $20,000 after the 45 days had elapsed. If the assessing office determined that the failure to give notice was due to reasonable cause and not the willful neglect of the buyer, grantee, or other transferee, however, the penalty would be as described above (with a $1,000 maximum). If the assessing office determined that the failure to give notice was a result of the buyer's, grantee's, or other transferee's willful neglect, the assessing office would promptly have to send the buyer, grantee, or transferee written notice, by certified mail, of that determination. The buyer, grantee, or transferee could appeal the determination to the Michigan Tax Tribunal.
MCL 211.27b Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill would have no effect on State revenue or expenditure and would increase revenue to local units by an unknown amount. The impact on local units would depend on the specific characteristics of any affected properties and the degree to which the bill altered the number of unreported transfers.
Date Completed: 12-3-12 Fiscal Analyst: David Zin
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.