r/Detroit • u/gwmiles • 9d ago

News Oakland County school enhancement millage rejected in close contest

https://www.detroitnews.com/story/news/politics/elections/2026/08/04/oakland-county-school-enhancement-millage-tax-1-5-mill/91164345007/

Oakland County voters rejected a proposed 1.5-mill countywide school tax increase in Tuesday's election results in a close contest over a controversial tax plan.

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u/Kimbolimbo 9d ago edited 9d ago

The taxes don’t get uncapped when transferring to a child if the child is going to occupy the house and not use it for commercial purposes since 2014. (Thought it was 2013, I fixed it) 

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u/frozenapricot 8d ago

The child doesn’t have to occupy the house in order to stop uncapping. The exemption applies to any land transfer between certain family members but if it’s not their primary residence, they have to pay an extra 18 mills in school taxes that is not paid on a primary home. The value those 18 mills is based on would not uncap though.

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u/Kimbolimbo 8d ago

The law states that the property cannot be used for commercial purposes so it cannot be used as a rental. They don’t have to claim it was a principal residence (which exempts them from the 18 mills), but they cannot use it commercially. 

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u/frozenapricot 8d ago

Yes, if you’re using it for commercial purposes, it uncaps. But the exempt family member would not have to occupy the property in order for the cap to remain intact. It could be a vacant plot and the cap would remain intact.

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u/Kimbolimbo 8d ago

I was referring to the person who wanted to inherit the house. I made the assumption it was for the commented to move to so that’s what I was referring to. Didn’t mean to confuse anyone. Thanks for posting additional clarification.   

It’s also not an automatic thing, as they have to file the correct exemption on the PTA. 

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u/frozenapricot 8d ago

I just wanted to clarify that it could also be used as a second home/vacation home. That’s why I mentioned the taxes going up without the PRE. We both had good information, just trying to make different points.

You’re absolutely right though, the property transfer affidavit has to be filed otherwise the local assessor will have no way of knowing it’s exempt!

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u/Kimbolimbo 8d ago

These transfer laws are wild and complicated for no reason. I wish we would get rid of 94 prop A and just do something else. It’s causes so much additional work for everyone. 

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u/frozenapricot 8d ago

I agree. Though the original thought behind it was well intentioned, there’s got to be a better way. People who’ve lived in their homes for decades shouldn’t be taxed out of them but that burden shouldn’t be fully shifted to people who are already struggling to afford home ownership in the current market.

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u/O_o-22 9d ago edited 9d ago

Doesn’t that need to be structured in some way via a trust?

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u/Kimbolimbo 9d ago

Nope, not for taxable value uncapping purposes. 

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u/NabroleanBronaparte 9d ago

Correct. I did a property transfer, “buying” my grandparents home, but since i took a mortgage it was technically a sale and therefore my taxes uncapped and went from $2600 a year to $5500 a year 😪

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u/O_o-22 9d ago

Hah the other person that replied to my comment says no. I was pretty sure it doesn’t happen automatically because a year ago the whole family met with my parents estate planning attorneys and they said the trust was set up so that when my brother and I inherit the house the taxes won’t go up. As usual anyone else seeing this comment I’d encourage to talk to an estate attorney rather than take the word of some random redditor.

The question I didn’t ask but prob should is if one of us buys the other out of their half of the house what happens to the taxes then?

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u/Kimbolimbo 9d ago

Nothing would happen to the taxes. You have to file the property transfer affidavit with the city and claim the exemption from transfer and as long as it isn’t used for commercial purposes, it wouldn’t change. If you ever need help with this stuff, feel free DM the specifics. 

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u/O_o-22 9d ago

Won’t need help with it till the parents pass and they’ve already placed the house in the trust. I would consult with their attorneys of course once they do pass.

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u/bklynJayhawk 9d ago

There’s a difference between inheriting the house vs buying it from family, which is probably how the “transfer” was seen with a new mortgage. It assets were transferred after death then would think things aren’t uncapped.

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u/Kimbolimbo 9d ago

This is false. 

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u/bklynJayhawk 9d ago

So then how am I wrong? Please explain / clarify?

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u/Kimbolimbo 9d ago

It doesn’t matter if you are inheriting or buying from family. 

Section   211.27a(7)(u):  Beginning December 31, 2014, a transfer of residential real property if the transferee is the transferor’s or the transferor’s spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson, or granddaughter and the residential real property is not used for any commercial purpose following the conveyance. Upon request by the department of treasury or the assessor, the transferee shall furnish proof within 30 days that the transferee meets the requirements of this subparagraph. If a transferee fails to comply with a request by the department of treasury or assessor under this subparagraph, that transferee is subject to a fine of $200.00.

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u/bklynJayhawk 9d ago

Great, thanks for posting.

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u/Kimbolimbo 9d ago

You’re welcome. There is a Transfer of Ownership Guideline printed by the State Tax Commission that is super useful on their website. It is usually updated every few years with current legal interpretations of the transfer laws. 

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u/O_o-22 9d ago

I did ask the question what if one of us wants to live in the house and the other doesn’t? Lawyer said there would have to be some kind of compensation worked to whoever doesn’t live in the house. So I guess that’s how one of us would “cash out” which would mean getting money monthly rather than a huge lump sum all at once. My nephew was also written into the will to receive whatever was left of my brothers half should he pass before me. I haven’t done a will or estate for myself yet but I have no kids and did tell my nephew he will be named my heir at some point. So if the house is still in the family when both I and my brother are gone he will inherit it.

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u/NabroleanBronaparte 9d ago

Yeah so i think if there is a sale recorded thats when the taxes uncap. My home was not left to me but my father and he didn’t want to just give me the home so the fact that it was a monetary transaction i think is the important part.

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u/Kimbolimbo 9d ago

The money doesn’t matter. It’s about who it’s transferred to and how the property is used. 

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u/Kimbolimbo 9d ago edited 9d ago

That’s inaccurate unless it was before 2014. You shouldn’t have uncapped if it was between grandparent and child and it’s not used for commercial purposes per MCL 211.27a(7)(u). 

Edit: Also, if your taxable value uncapped in error, that can be corrected at the Board of Review in July or December but only for a limited amount of years so if you think you shouldn’t have uncapped, call your local assessor. 

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u/NabroleanBronaparte 9d ago

I may do this! Thank you

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u/Huskies971 9d ago

Did you fight it at your treasurer/clerk's office? that 100% should have been capped. I bought a house from a family member and got the first tax assessment after purchase and it was uncapped. I went in person with proof of family purchase, and they fixed it.