Following a transfer of ownership, what happens to a property's taxable value?

After a transfer of ownership, a property's taxable value is adjusted to reflect the assessed value for the current year. This adjustment typically means that the taxable value resets to the current market value, which can be higher or lower than the previous owner's taxable value, depending on the real estate market conditions.

In Michigan, when a property changes ownership, it triggers a reassessment, resulting in a new taxable value set at the assessed value determined by the local assessing officer for that year. This is an opportunity to ensure that the property's taxable value aligns more closely with its current market conditions, rather than being limited by the previous owner's capped value, which may have been preserved under Michigan's Proposal A limitations. Therefore, this adjustment allows for more accurate taxation based on the property's current worth.