July 23, 2008, Introduced by Rep. Miller and referred to the Committee on Tax Policy.
A bill to amend 1993 PA 330, entitled
"State real estate transfer tax act,"
by amending section 6 (MCL 207.526), as amended by 2003 PA 128.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. The following written instruments and transfers of
property are exempt from the 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 a 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 written 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, 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.
(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 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 an individual to that individual's
child, stepchild, or adopted child.
(k) A conveyance from an individual to that individual's
grandchild, step-grandchild, or adopted grandchild.
(l) 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 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, 26 U.S.C. USC
414.
(t) A written instrument conveying an interest in property for
which an exemption is claimed under section 7cc of the general
property tax act, 1893 PA 206, MCL 211.7cc, if the state equalized
valuation of that 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 that same interest in
property. If after an exemption is claimed under this subsection,
the sale or transfer of 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.
(w) A written instrument transferring an interest in property
that meets all the following:
(i) The property contains a newly constructed residential
dwelling.
(ii) The property is classified as residential real property
under section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
(iii) The property or any portion of the property has not
previously received an exemption under this subdivision.