HB-4441, As Passed House, March 14, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4441

                        (As amended March 14, 2007)

     A bill to amend 1993 PA 330, entitled

"State real estate transfer tax act,"

by amending sections 5 and 11 (MCL 207.525 and 207.531), section 5

as amended by 1994 PA 224.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 5. (1) Beginning on January 1, 1995, except as otherwise

provided in this section, the tax imposed under sections 3 and 4 is

levied at the rate of $3.75 for each $500.00 or fraction of $500.00

of the total value of the property being transferred.

     (2) Beginning April 1, 2007 through September 1, 2008 only,

the tax imposed under sections 3 and 4 on property transferred for

which a principal residence exemption is claimed under section 7cc

of the general property tax act, 1893 PA 206, MCL 211.7cc, [not including

 new construction,] is

House Bill No. 4441 (H-1) as amended March 14, 2007

levied at the rate of $4.25 for each $500.00 or fraction of $500.00

of the total value of the property being transferred.

(3) (2) A written instrument subject to the tax imposed by

this act shall state on its face the total value of the real

property being transferred unless an affidavit is attached to the

written instrument declaring the total value of the real property

being transferred. The form of the affidavit shall be prescribed by

the department of treasury. If the sale or transfer is of a

combination of real and personal property, the tax shall be imposed

only upon the transfer of the real property if the values of the

real and personal property are stated separately on the face of the

written instrument or if an affidavit is attached to the written

instrument setting forth the respective values of the real and

personal property.

     Sec. 11. (1) The Except as otherwise provided in subsection

(2), the treasurer shall credit the proceeds of the tax collected

by county treasurers under this act to the state treasury to the

credit of the state school aid fund established in section 11 of

article IX of the state constitution of 1963.

     (2) Beginning April 1, 2007 through September 1, 2008, the

treasurer shall credit [ ] the proceeds of the tax levied

at the rate of $4.25 for each $500.00 or fraction of $500.00 under

section 5(2)[as follows:

     (a) 75%] to the general fund of the local tax collecting unit

from which the excess proceeds were collected[.

(b) 25% to the county in which the local tax collecting unit from

which the excess proceeds were collected is located.

     (3) Excess proceeds collected under section 5(2) and distributed under subsection (2)] shall be used

for public safety. As used in this subsection, "public safety"

means the support of police officers, firefighters, other first

responders, school safety officers, [ ] school resource officers[,

court operations, and jail operations and administration]. [This revenue shall not be used to supplant other revenue spent by the local tax collecting unit on public safety.

House Bill No. 4441 (H-1) as amended March 14, 2007

(4) The county treasurer shall identify on a form prescribed by

the department of treasury those parcels on which the additional tax

levied under section 5(2) is collected and provide the location of each

parcel.

]

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 4440 of the 94th Legislature is enacted into

law.