Purchase Price as Presumptive True Cash Value

Legislation has been introduced (HB 4361, Rep Rocca, 2/19/09) which would substantially change the rules regarding the assessment of recently transferred property. Specifically, this legislation would amend the General Property Tax Act by providing that the arm’s length purchase price paid in a transfer of property is the presumptive true cash value of the property transferred. This proposed legislation should be closely watched by assessors and township officials and given the general public’s dissatisfaction with the assessment process it will likely not be the only such legislation proposed this year.