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A Better Partnership
October 01, 2010

COA Opinion: Passing a deed from a partnership to one of the partners constitutes a transfer of ownership that allows reassessment of the property's taxable value.

In Schwass v. Township of Riverton, No. 292737 (Sept. 30, 2010), the Court of Appeals held that conveying a deed for a piece of real property from a partnership to one of the partnership's members constitutes a transfer of ownership under MCL ' 211.27a(3), a tax statute. Under this statute, a transfer of ownership "uncaps" the taxable value, which means it allows a tax authority to reassess a property's taxable value. While MCL ' 211.27a(7) lists certain transfers that do not trigger uncapping, such as a joint tenacy, it does not include tenancies in partnership as one of the exceptions to uncapping.

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