This morning the House Tax Policy Committee reported Senate Bill 396, a bill that would amend the General Property Tax Act to provide that, after December 31, 2011, if a property is destroyed due to an accident or natural disaster, the taxable value of the replacement property would be the same as the year of the incident and not subject the Proposal A annual adjustment of the lesser of the rate of inflation of 5 percent.
This would apply to reconstruction properties if the rebuild is done with substantially the same materials as the original, the square footage is not more than 5 percent larger than the original property and it is completed no later than the December 31 in the year that is 3 years after the incident.
The League is opposed to this legislation that now heads to the full chamber for review.
Samantha Harkins is the Director of State Affairs for the Michigan Municipal League. She can be reached at 517-908-0306 or email at email@example.com