Exemptions to Real Estate Transfer Tax
MCL 207.505 Sec 5 (County) MCL 207.526 Sec. 6 (State)
A written instrument subject to the tax imposed by MCL 207.505 Sec. 5 and MCL 207.526 Sec 6 shall state on its face the TOTAL CONSIDERATION of the real property, or a Real Estate Transfer Valuation Affidavit disclosing the total consideration shall be filed at the time the instrument is presented for recording (see above named acts for details).
No filing fee is charged for filing the "Real Estate Transfer Valuation Affidavit", but a statement must be made on the face of the instrument that a real estate transfer valuation affidavit is being filed.
Transfer tax imposed by each act shall be collected unless the transfer is exempt from either or both acts. Any exemptions to the above named acts must be stated on the face of the instrument presented for recording.
The tax shall be upon the person who is the seller or the grantor.
In the case of an exchange of two properties, the deeds transferring title to each are subject to Michigan Real Estate Transfer Tax, and in each case shall be computed on the basis of the actual value of the property conveyed.
Documentary stamps shall be purchased only in the county in which the property is located.
Conveyances affecting property situated in more than one county must state the portion of the sale price attributable to each parcel lying in the separate counties and transfer tax must be paid to each county for that portion of the sale price.
An instrument of foreclosure is subject to transfer tax based on the sale price stated on the face of the instrument.
A conveyance of an easement or a right of way is subject transfer tax.
MCL 207.505
Sec. 5. The following instruments and transfers shall be exempt from this act:
- Instruments where the value of the consideration is less than $ 100.00.
- Instruments evidencing contracts or transfers which are not to be performed wholly within this state insofar as such instruments include land lying outside of this state.
- Written instruments which this state is prohibited from taxing under the constitution or statutes of the United States.
- Instruments or writings given as security or any assignment or discharge thereof.
- Instruments evidencing leases, including oil and gas leases, or transfers of such leasehold interests.
- Instruments evidencing any interests which are assessable as personal property.
- Instruments evidencing the transfer of rights and interests for underground gas storage purposes.
- Instruments (i) in which the grantor is the United States, the state, any political subdivision or municipality thereof, or officer thereof acting in his official capacity; (ii) given in foreclosure or in lieu of foreclosure of a loan made, guaranteed or insured by the United States, the state, any political subdivision or municipality thereof or officer thereof acting in his official capacity; (iii) given to the United States, the state, or I of their officers as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the grantee.
- Conveyances 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.
- Judgments or orders of courts of record making or ordering transfers, except where a specific monetary consideration is specified or ordered by the court therefor.
- Instruments used to straighten boundary lines where no monetary consideration is given.
- Instruments to confirm titles already vested in grantees, such as quitclaim deeds to correct flaws in titles.
- Land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid.
- Instruments evidencing the transfer of mineral rights and interests.
- Instruments creating a joint tenancy between 2 or more persons where at least 1 of the persons already owned the property.
Exemptions to State Real Estate Transfer Tax Act # 134 of 1966, as amended.
Effective January 1, 1995
MCL 207.526
Sec. 6. The following written instruments and transfers of property are exempt from tax imposed by this act:
- A written instrument in which the value of the consideration for the property is less than $100.00.
- 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.
- A written instrument that this state is prohibited from taxing under the United States constitution or federal statutes.
- A written instrument given as security or an assignment or discharge of the security interest.
- A written instrument evidencing a lease, including an oil and gas lease, or transfer of a leasehold interest.
- A written instrument evidencing, an interest that is assessable as personal property.
- A written instrument evidencing the transfer of a right and interest for underground gas storage purposes.
- Any of the following written instruments:
- 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.
- 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, 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.
- A written instrument given to the United States, this state, or I of their officers acting in an official capacity as grantee, pursuant to the terms or (Guarantee or insurance of a loan guaranteed or insured by the grantee.)
- 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,
- A conveyance from an individual to that individual's child, stepchild, or adopted child.
- A conveyance from an individual to that individual's grandchild, step-grandchild, or adopted grandchild.
- 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.
- A written instrument used to straighten boundary lines if no monetary consideration is given.
- A written instrument to confirm title already vested in a grantee, including a quitclaim deed to correct a flaw in title.
- 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.
- A written instrument evidencing the transfer of mineral rights and interests.
- A written instrument creating a joint tenancy between 2 or more persons if at least 1 of the persons already owns the property.
- 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.
- A written instrument evidencing a contract or transfer of property to a person 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, 26U.S.C.414.
- 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 the Michigan Compiled 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 Compiled 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.
- 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.
- 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 subsequent transfer of the foreclosed property by the entity that foreclosed on the mortgage.
- 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 collections of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s.