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For real estate whose transfer value is
$100, or more, the State Transfer Tax is equal to $3.75 for each $500, or
fraction thereof of the sale price of the property. For example, the tax on
a property whose sale price was between $50,000.01 and $50,500 would be
$382.50.
PLEASE NOTE: REVISED LIST 11/2000 TO INCLUDE SUBSECTION (v) STATE
TRANSFER TAX
Exemptions to Real Estate Transfer Tax
Effective January 1, 1995
**THE FOLLOWING LANGUAGE MUST BE USED ON THE DOCUMENT YOU ARE SUBMITTING
AND PLEASE INSERT THE APPROPRIATE SUB-SECTION IN PARENTHESIS.
**THIS INSTRUMENT IS EXEMPT FROM THE STATE REAL ESTATE TRANSFER TAX BY
VIRTUE OF MCL 207.526 ( ).
MCL 207.526
Sec. 6 The following written instruments and transfers of property are
exempt from tax imposed by this act:
- (a) A written instrument in which the value of the consideration for
the property is less than $100.00.
- (b) A written instrument evidencing a contract or transfer that is not
to be performed wholly within this state only to the extent the written
instrument includes land lying outside of this state.
- (c) A written instrument that this state is prohibited from taxing
under the United States constitution or federal statutes.
- (d) A written instrument given as security or an assignment or
discharge of the security interest.
- (e) A written instrument evidencing a lease, including an oil and gas
lease, or transfer of a leasehold interest.
- (f) A written instrument evidencing an interest that is assessable as
personal property.
- (g) A written instrument evidencing the transfer of a right and
interest for underground gas storage purposes.
- (h) Any of the following instruments:
- (i) A written instrument in which the grantor is the United States,
this state, a political subdivision or municipality of this state, or an
officer of the United States or of this state, or a political
subdivision or municipality of this state, acting in his or her official
capacity.
- (ii) A written instrument given in foreclosure or in lieu of
foreclosure of a loan made, guaranteed or insured by the United States,
this state, a political subdivision or municipality of this state,
acting in his or her official capacity.
- (iii) A written instrument given to the United States, this state, or
1 of their officers acting in an official capacity as grantee, pursuant
to the terms or guarantee or insurance of a loan guaranteed or insurance
of a loan guaranteed or insured by the grantee.
- (i) A conveyance from a husband or wife or husband and wife creating
or disjoining a tenancy by the entireties in the grantors or the grantor
and his or her spouse.
- (j) A conveyance from a mother or father to a son or daughter or
stepchild or adopted child.
- (k) A conveyance from a grandmother or grandfather to a grandchild or
step-grandchild or adopted grandchild.
- (1) A judgment or order of a court of record making or ordering a
transfer, unless a specific monetary consideration is specified or ordered
by the court for the transfer.
- (m) A written instrument used to straighten boundary lines if no
monetary consideration is given.
- (n) A written instrument to confirm title already vested in a grantee,
including a quitclaim deed to correct a flaw in title.
- (o) A land contract in which the legal title does not pass to the
grantee until the total consideration specified in the contract has been
paid.
- (p) A written instrument evidencing the transfer of mineral rights and
interests.
- (q) A written instrument creating a joint tenancy between 2 or more
persons if at least 1 of the persons already owns the property.
- (r) A transfer made pursuant to a bona fide sales agreement made
before the date the tax is imposed under sections 3 and 4, if the sales
agreement cannot be withdrawn or altered, or contains a fixed price not
subject to change or modification. However, a sales agreement for
residential construction may be adjusted up to 15% to reflect changes in
construction specifications.
- (s) A written instrument evidencing a contract or transfer of property
sufficiently related to the transferor to be considered a single employer
with the transferor under section 414(b) or (c) of the internal revenue
code of 1986, 26 U.S.C.414.
- (t) A written instrument conveying an interest in homestead property
for which a homestead exemption is claimed under either the school code of
1976, Act No. 451 of the Public Acts of 1976, being sections 380.1 to
380.1852 of Michigan Complied Laws or the state education tax act, Act No.
331 of the Public Acts of 1993, being sections 211.901 to 211.906 of the
Michigan Complied Laws, if the state equalized valuation of that homestead
property is equal to or lesser than the state equalized valuation on the
date of purchase or on the date of acquisition by the seller or transferor
for the same interest in property. If after an exemption is claimed under
this subsection, the sale or transfer of homestead property is found by
the treasurer to be at a value other than the true cash value, then a
penalty equal to 20% of the tax shall be assessed in addition to the tax
due under this act to the seller or transferor.
- (u) A written instrument transferring an interest in property pursuant
to a foreclosure of a mortgage including a written instrument given in
lieu of foreclosure of a mortgage. This exemption does not apply to a
subsequent transfer of the foreclosed property by the entity that
foreclosed on the mortgage.
- (v) A written instrument conveying an interest from a religious
society in property exempt from the Collection of taxes under section 7s
of the general property tax act, 1893 PA 206, MCL 211.7s to a Religious
society if that property continues to be exempt from the collection of
taxes under section 7s of the general property tax act, 1893 PA 206, MCL
211.7s.
Return to Register of Deeds Office
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