Property tax: assessments; inapplicability of pop-up to taxable value resulting from interspousal transfers of ownership interests in legal entities; clarify. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).

This bill clarifies Michigan property tax rules by explicitly stating that the "pop-up" tax assessment does not apply when spouses transfer ownership interests in legal entities to one another. It amends the General Property Tax Act to ensure that such transfers between spouses do not trigger a full reassessment of property value, allowing the property to retain its previously established taxable value. The legislation also defines specific conditions under which transfers to trusts and distributions from trusts are exempt from immediate tax value increases, particularly for residential property transferred among close family members. Additionally, the bill clarifies procedures for correcting taxable value adjustments when ownership transfers are mistakenly not recorded, allowing local tax authorities to make corrections for the current year and up to three prior years.