House Introduced Bill 6278

HOUSE BILL No. 6278

September 17, 2002, Introduced by Reps. Birkholz, Cassis, Newell, Palmer, Woronchak, Voorhees, Vander Veen, Richardville,
Ehardt, Cameron Brown, Meyer, Van Woerkom, Rocca, Caul, Pappageorge, DeRossett and Kooiman 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 2000 PA 203.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 6. The following written instruments and transfers of

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property are exempt from the tax imposed by this act:

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(a) A written instrument in which the value of the consider-

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ation for the property is less than $100.00.

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(b) A written instrument evidencing a contract or transfer

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that is not to be performed wholly within this state only to the

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extent the written instrument includes land lying outside of this

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state.

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(c) A written instrument that this state is prohibited from

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taxing under the United States constitution or federal statutes.

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(d) A written instrument given as security or an assignment

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or discharge of the security interest.

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(e) A written instrument evidencing a lease, including an

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oil and gas lease, or a transfer of a leasehold interest.

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(f) A written instrument evidencing an interest that is

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assessable as personal property.

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(g) A written instrument evidencing the transfer of a right

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and interest for underground gas storage purposes.

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(h) Any of the following written instruments:

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(i) A written instrument in which the grantor is the United

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States, this state, a political subdivision or municipality of

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this state, or an officer of the United States or of this state,

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or a political subdivision or municipality of this state, acting

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in his or her official capacity.

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(ii) A written instrument given in foreclosure or in lieu of

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foreclosure of a loan made, guaranteed, or insured by the United

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States, this state, a political subdivision or municipality of

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this state, or an officer of the United States or of this state,

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or a political subdivision or municipality of this state, acting

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in his or her official capacity.

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(iii) A written instrument given to the United States, this

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state, or 1 of their officers acting in an official capacity as

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grantee, pursuant to the terms or guarantee or insurance of a

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loan guaranteed or insured by the grantee.

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(i) A conveyance from a husband or wife or husband and wife

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creating or disjoining a tenancy by the entireties in the

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grantors or the grantor and his or her spouse.

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(j) A conveyance from an individual to that individual's

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child, stepchild, or adopted child.

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(k) A conveyance from an individual to that individual's

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grandchild, step-grandchild, or adopted grandchild.

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(l) A judgment or order of a court of record making or

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ordering a transfer, unless a specific monetary consideration is

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specified or ordered by the court for the transfer.

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(m) A written instrument used to straighten boundary lines

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if no monetary consideration is given.

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(n) A written instrument to confirm title already vested in

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a grantee, including a quitclaim deed to correct a flaw in

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title.

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(o) A land contract in which the legal title does not pass

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to the grantee until the total consideration specified in the

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contract has been paid.

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(p) A written instrument evidencing the transfer of mineral

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rights and interests.

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(q) A written instrument creating a joint tenancy between 2

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or more persons if at least 1 of the persons already owns the

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property.

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(r) A transfer made pursuant to a bona fide sales agreement

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made before the date the tax is imposed under sections 3 and 4,

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if the sales agreement cannot be withdrawn or altered, or con-

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tains a fixed price not subject to change or modification.

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However, a sales agreement for residential construction may be

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adjusted up to 15% to reflect changes in construction

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specifications.

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(s) A written instrument evidencing a contract or transfer

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of property to a person sufficiently related to the transferor to

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be considered a single employer with the transferor under

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section 414(b) or (c) of the internal revenue code of 1986, 26

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U.S.C. 414.

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(t) A written instrument conveying an interest in

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homestead property for which a homestead AN exemption is

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claimed under section 7cc of the general property tax act, 1893

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PA 206, MCL 211.7cc, if the state equalized valuation of that

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homestead property is equal to or lesser than the state equal-

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ized valuation on the date of purchase or on the date of acquisi-

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tion by the seller or transferor for that same interest in

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property. If after an exemption is claimed under this subsec-

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tion, the sale or transfer of homestead property is found by

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the treasurer to be at a value other than the true cash value,

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then a penalty equal to 20% of the tax shall be assessed in addi-

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tion to the tax due under this act to the seller or transferor.

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(u) A written instrument transferring an interest in prop-

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erty pursuant to a foreclosure of a mortgage including a written

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instrument given in lieu of foreclosure of a mortgage. This

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exemption does not apply to a subsequent transfer of the fore-

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closed property by the entity that foreclosed on the mortgage.

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(v) A written instrument conveying an interest from a reli-

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gious society in property exempt from the collection of taxes

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under section 7s of the general property tax act, 1893 PA 206,

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MCL 211.7s, to a religious society if that property continues to

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be exempt from the collection of taxes under section 7s of the

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general property tax act, 1893 PA 206, MCL 211.7s.

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Enacting section 1. This amendatory act does not take

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effect unless Senate Bill No. _____ or House Bill No. 6283

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(request no. 07067'02) of the 91st Legislature is enacted into

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law.

07067'02 b Final page. FDD