This form results from Proposal A of 1994 reforms. Proposal A caps, or limits, the rate of increase in your property's taxable value (taxable value is used to calculate your tax bill). The taxable value (in most cases) cannot increase more than the rate of inflation, with the exception of value which is added due to an improvement. Another exception to the cap is a transfer of ownership. In the year following a transfer of ownership, the property’s taxable value becomes uncapped and equal to the assessed value of the property. The assessed value is the assessor’s estimate of 50% market value.

As a result of the uncapping provision in Proposal A, the legislature enacted mandatory disclosure of all transfers of property in the State of Michigan. The Property Transfer Affidavit is the form used to fulfill this disclosure requirement. The new owner of the property is required to file the Property Transfer Affidavit with the local assessor within 45 days of the transfer of ownership. In order to insure compliance with the filing requirement, the legislature attached a penalty for failure to file the form. Starting on the 46th day after the transfer of ownership, there is an accruing $5 per-day ($200 maximum) penalty.

Failure to file a property transfer affidavit can have far more serious consequences than the $5/day penalty. If several years have elapsed before the transfer is discovered, the owner is billed for all the additional taxes which should have been levied each year since the time the uncapping should have occurred - including penalty and interest.

Download the Property Transfer Affidavit.