Torch Lake Township

5081 N US-31 \| PO Box 713 \| Eastport, MI 49627 \| Phone (231) 599-2036 \| Fax (231) 599-2981
Home Assessing Clerk Elected Officials Elections EMS Department Fire Department Links Minutes / Agendas Land Use Plan/Maps Newsletters Ordinances Planning Commission Staff Supervisor Township Board Treasurer Zoning Board of Appeals Zoning / Planning Site Map	The Property Transfer Affidavit This form is also a result of Proposal A-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 greater 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 will become uncapped and become equal to the assessed value of the property. The assessed value is the assessor’s estimate of 50% of 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 a $5/day penalty, $200 maximum, which begins to accrue. 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 will be billed for all of the additional taxes which should have been levied each year since the time the uncapping should have occurred, including penalty and interest.

5081 N US-31 | PO Box 713 | Eastport, MI 49627 | Phone (231) 599-2036 | Fax (231) 599-2981

The Property Transfer Affidavit

This form is also a result of Proposal A-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 greater 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 will become uncapped and become equal to the assessed value of the property. The assessed value is the assessor’s estimate of 50% of 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 a $5/day penalty, $200 maximum, which begins to accrue.

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 will be billed for all of the additional taxes which should have been levied each year since the time the uncapping should have occurred, including penalty and interest.