Buying a home in Grand Traverse County comes with a lot of moving parts, and property taxes are often the most confusing. If you have heard about Michigan’s Proposal A and “uncapping,” you might be wondering if your tax bill will jump after you close. You are not alone. In this guide, you will learn how uncapping works, when you will see changes, which transfers may be excluded, and the simple steps you can take to plan with confidence. Let’s dive in.
Proposal A in plain English
Proposal A created a taxable value that generally increases each year by the rate of inflation or 5 percent, whichever is lower. This helps keep annual property tax increases more predictable for long‑time owners. Your home also has a true cash value (TCV), which is its market value, and a state equalized value (SEV), which is 50 percent of market value under Michigan law.
When ownership changes and the transfer counts as a transfer of ownership, the property’s taxable value is uncapped and reset to the SEV for the next assessment year. That reset can mean a one‑time jump in the taxable value compared with the prior capped value. After that reset, the annual cap on increases applies again going forward.
What uncapping means when you buy
In most standard purchases, your closing triggers a transfer of ownership. If no statutory exclusion applies, the assessor will uncap the property and set taxable value equal to the SEV in the next assessment cycle.
Here is a simple example to show the mechanics:
- Prior capped taxable value: $100,000
- Market value at purchase implies SEV of $240,000 (true cash value about $480,000)
- After transfer, taxable value resets to SEV of $240,000
That one‑time reset increases the taxable value from $100,000 to $240,000. Your tax bill is taxable value × local millage rates, so a higher taxable value means a higher dollar amount due, all else equal. After the reset year, future increases are capped by Proposal A’s inflation limit.
When you will see the change
Uncapping does not always show up instantly on a bill right after closing. Here is the usual sequence in Grand Traverse County:
You close and the deed is recorded at the Grand Traverse County Register of Deeds. Recording often happens within days or weeks of closing.
The local assessor receives the recorded deed, updates ownership, and reviews whether the transfer meets the legal definition of a transfer of ownership. If it does, the assessor uncaps the taxable value and sets it equal to the SEV.
You see the change in the next assessment cycle when the assessor mails the change‑of‑assessment notice. The updated taxable value then flows into the next tax billing cycle after the roll is finalized. Timing can vary by township or city, so watch your mail and follow up with the assessor if you have questions.
Common exclusions that can prevent uncapping
Michigan law lists specific situations that are excluded from the definition of a transfer of ownership. When an exclusion applies, the taxable value does not uncap. Local assessors review these case by case. Common examples include:
- Certain transfers between spouses, including many transfers connected to a divorce settlement.
- Transfers into a revocable trust when the transferor remains the beneficiary and retains control.
- Some transfers due to death or inheritance when the transferee meets statutory criteria.
- Transfers to or from government units or certain nonprofit entities under specific rules.
- Transfers that do not change beneficial ownership, such as some internal entity reorganizations.
There are important caveats. Partial interests, contract‑for‑deed arrangements, and surface versus mineral rights can be complex. Documentation needs can be technical, and some family or gift transfers still cause uncapping if they do not meet the statutory exclusions. Your local assessor can help you understand how the rules apply to your deed and vesting.
PRE vs. uncapping: different rules
The Principal Residence Exemption (PRE) is a separate concept. PRE reduces or eliminates certain school operating taxes when you live in the home as your primary residence. Filing for PRE does not prevent uncapping after a transfer of ownership. If you plan to occupy the home as your principal residence, ask the assessor about the PRE form and deadline, and submit it promptly after closing.
Your buyer checklist for Grand Traverse County
Use this simple checklist to stay ahead of taxable value changes and paperwork.
At closing:
- Confirm names and vesting on the deed match your intentions, whether that is individual, spouse, trust, or joint tenancy. Vesting can affect whether an exclusion applies.
- Get a copy of the recorded deed or recording confirmation from the Register of Deeds.
Within weeks after closing:
- Contact the township or city assessor where the property is located. Ask if your deed has been received, whether the transfer has been processed, and if uncapping will occur.
- If you intend to claim PRE, ask which form to file and the deadline. Submit your PRE application if eligible.
If you receive an assessment notice with a large increase:
- Review it carefully and call the assessor for an explanation. Verify legal description, classification, and whether an exclusion should have applied.
- If you believe the SEV or taxable value is wrong, follow the posted appeal instructions. Start with the local Board of Review and, if needed, the Michigan Tax Tribunal.
Documents to keep handy:
- Recorded deed and closing statement.
- Proof of occupancy for PRE if you live in the home as your primary residence.
- Any estate or trust documents if your purchase was connected to a probate or trust transfer.
Who to contact locally
In Grand Traverse County, property assessment is handled at the township or city level, with county offices supporting equalization. For accurate answers and forms, contact:
- The Grand Traverse County Register of Deeds for recording status and dates.
- Your township or city assessor to confirm processing, PRE filing, and appeal windows.
- The County Equalization or Assessing office for county‑level questions on SEV and equalization factors.
- The Michigan Department of Treasury and State Tax Commission for official guidance on Proposal A, transfer rules, and appeals procedures.
Appeals and special situations
If your taxable value jumps and you believe it is incorrect, start with the local assessor. Many issues can be resolved quickly if they involve clerical errors or classification. If that does not fix it, the next steps are to file an appeal with your local Board of Review during its scheduled sessions. If you still need relief, you can file with the Michigan Tax Tribunal within the statutory deadlines.
Some purchases require extra care, such as transfers involving probate estates, trusts, contract‑for‑deed sellers, or intra‑family transactions. Parcel splits or combinations can also affect how values are calculated. In these situations, consider consulting a real estate attorney, tax professional, or other qualified expert.
Quick math: how taxes are calculated
Your bill is based on the formula taxable value × millage rate. Millage rates are set in mills per $1,000 of taxable value. When uncapping resets your taxable value to the SEV, the same millage now multiplies a larger number, so your tax dollars increase. After that reset year, Proposal A’s cap limits your taxable value growth to inflation or 5 percent, whichever is lower, unless there is another transfer of ownership.
How we help you plan ahead
A smooth purchase includes planning for the tax picture. When you work with our team, we help you read the assessment record, estimate how uncapping may affect your taxable value, and outline the next steps for PRE and follow‑up with the assessor. You get clear timelines, local contacts, and reminders so you are not surprised when the assessment notice arrives.
If you are weighing different neighborhoods or property types, we can compare how timing, vesting choices, and likely SEV changes could affect your budget. Our goal is to help you make a confident decision with eyes wide open.
Ready to talk through your plan for Grand Traverse County taxes and timelines? Connect with Ryan & Jenni REALTORS® to schedule your free consultation. We will help you navigate Proposal A, coordinate with local offices, and move forward with confidence.
FAQs
What is taxable value vs. SEV in Michigan property taxes?
- True cash value is the market value, SEV is 50 percent of that, and taxable value is the number used for most property taxes. Taxable value grows by inflation or 5 percent each year until a transfer of ownership resets it to the SEV.
When does uncapping show on my bill after buying in Grand Traverse County?
- You usually see uncapping in the next assessment cycle after your deed is recorded and the assessor processes the transfer. The change appears on your assessment notice and then on the next tax roll when finalized.
Does filing the Principal Residence Exemption stop uncapping?
- No. PRE is separate and helps with certain school operating taxes for your primary residence, but it does not prevent uncapping after a transfer of ownership.
Do family or trust transfers trigger uncapping in Michigan?
- Some do and some do not. Certain spouse‑to‑spouse transfers, some revocable trust transfers, and specific inheritance situations can be excluded, but details are technical and documentation matters.
How big can my tax increase be after uncapping?
- The taxable value resets to the SEV, which can be a significant one‑time jump compared with the prior capped amount. After that year, increases are limited by Proposal A’s cap.
What if I think my new SEV or taxable value is wrong?
- Contact the local assessor first to review the record. If needed, appeal to the Board of Review within its deadlines, and then to the Michigan Tax Tribunal if the issue is not resolved.
Who should I contact about forms, timing, and appeals in Grand Traverse County?
- Start with your township or city assessor and the Grand Traverse County Register of Deeds for recording status. For statewide rules and appeals guidance, check the Michigan Department of Treasury, the State Tax Commission, and the Michigan Tax Tribunal.
