Potentially good news out of Lansing for Michigan home sellers. Democrats are initiating legislation to allow home buyers to pay the same amount in taxes as the home seller was paying.
Under the stateâ€™s current tax structure, the assessed taxable value of a home can rise annually by no more than 5 percent or the inflation rate. But when the house is sold, the new ownerâ€™s property taxes usually rise by far more because the cap is lifted.
Legislation unveiled Monday would eliminate the so-called â€œpop-upâ€ tax for residents who buy a house in the next 18 months.
Democrats said their plan â€” endorsed by Gov. Jennifer Granholm â€” would boost Michiganâ€™s economy by increasing home sales. To offset lost revenue for local governments, Democrats would increase the real estate transfer tax from .75 percent to .85 percent and funnel the extra money directly to local governments instead of K-12 schools.
[tags]pop up tax, michigan property taxes, proposal a[/tags]