On March 15, 1994, the voters of the State of Michigan approved Proposal A which includes significant changes to section 3 of Article IX of the State Constitution.

The following language from proposal A will cause significant changes in property tax procedures starting with 1995 assessments:

For taxes levied in 1995 and each year thereafter, the legislature shall provide that the taxable value of each paroe1 of property adjusted for addition8 and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, whichever is less until ownership of the parcel of property is as defined in section 33 of this article, or 5 percent, transferred. When ownership of the parcel of property is transferred as defined by law, the parcel shall be assessed at the applicable proportion of current true cash value.

Enrolled House Bill No. 5945 was signed by the Governor on December 29, 1994 and became Public Act No. 415 of 1994. Public (PA) No. 415 contains many significant changes the property Act regarding the implementation of Proposal A.

This bulletin will address those aspects of public Act (PA) No. 415 of 1994 which are of immediate concern to assessors and equalization directors for the 1995 assessment year. Other aspects will be addressed in future bulletins.