PROPERTY TRANSFERS

The Property Transfer Affidavit (PTA) (Form 2766) is a result of the Proposal A reforms. The form is used to inform the local assessor of the transfer (sale, inheritance, etc.) of property. Before Proposal A taxes were based on the Assessed Value of property. After Proposal A a new value was added to your property entitled "Taxable Value" which is the value used to calculate your property tax bill. Proposal A “caps”, or limits , the rate of increase of your property’s “taxable value”. The taxable value cannot rise faster than the rate of inflation * (excepting value added through additions or deletions to the property) until the property is transferred. In the tax year following the transfer of the property, the taxable value will “uncap” and become equal to the current “assessed value”. Assessed value represents approximately 50% of market value. In order to ensure that this “uncapping” adjustment is made on all transferred property, the law now requires the transferee (buyer, inheritor, etc.) to file this form within 45 days of the transfer.

Title companies generally make the PTA  available to buyers and sellers at the closing. However, it is in your best interest to be certain that the assessor receives these forms. You may call this office during regular business hours to check your property’s status.

*The Consumer Price Index (CPI) determined by the State of Michigan for 2010 is -.3%.
This is statewide and mandated by the State of Michigan. The Assessors does not have any control over the CPI.

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You can contact the Assessing Department via email at the following address:

assessing@lctberrien.org