HOUSE BILL No. 4191

 

February 11, 2003, Introduced by Reps. Stakoe, Brandenburg, Ward, Nofs and Hune 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:                      

                                                                                

1       Sec. 6.  The following written instruments and transfers of                 

                                                                                

2   property are exempt from the tax imposed by this act:                       

                                                                                

3       (a) A written instrument in which the value of the                          

                                                                                

4   consideration for the property is less than $100.00.                        

                                                                                

5       (b) A written instrument evidencing a contract or transfer                  

                                                                                

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

                                                                                

7   extent the written instrument includes land lying outside of this           

                                                                                

8   state.                                                                      

                                                                                

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

                                                                                

10  taxing under the United States constitution or federal statutes.            

                                                                                

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

                                                                                


                                                                                

1   or discharge of the security interest.                                      

                                                                                

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

                                                                                

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

                                                                                

4       (f) A written instrument evidencing an interest that is                     

                                                                                

5   assessable as personal property.                                            

                                                                                

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

                                                                                

7   and interest for underground gas storage purposes.                          

                                                                                

8       (h) Any of the following written instruments:                               

                                                                                

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

                                                                                

10  States, this state, a political subdivision or municipality of              

                                                                                

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

                                                                                

12  or a political subdivision or municipality of this state, acting            

                                                                                

13  in his or her official capacity.                                            

                                                                                

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

                                                                                

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

                                                                                

16  States, this state, a political subdivision or municipality of              

                                                                                

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

                                                                                

18  or a political subdivision or municipality of this state, acting            

                                                                                

19  in his or her official capacity.                                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  loan guaranteed or insured by the grantee.                                  

                                                                                

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

                                                                                

25  creating or disjoining a tenancy by the entireties in the                   

                                                                                

26  grantors or the grantor and his or her spouse.                              

                                                                                

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


                                                                                

1   child, stepchild, or adopted child.                                         

                                                                                

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

                                                                                

3   grandchild, step-grandchild, or adopted grandchild.                         

                                                                                

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

                                                                                

5   ordering a transfer, unless a specific monetary consideration is            

                                                                                

6   specified or ordered by the court for the transfer.                         

                                                                                

7       (m) A written instrument used to straighten boundary lines if               

                                                                                

8   no monetary consideration is given.                                         

                                                                                

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

                                                                                

10  grantee, including a quitclaim deed to correct a flaw in title.             

                                                                                

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

                                                                                

12  the grantee until the total consideration specified in the                  

                                                                                

13  contract has been paid.                                                     

                                                                                

14      (p) A written instrument evidencing the transfer of mineral                 

                                                                                

15  rights and interests.                                                       

                                                                                

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

                                                                                

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

                                                                                

18  property.                                                                   

                                                                                

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

                                                                                

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

                                                                                

21  if the sales agreement cannot be withdrawn or altered, or                   

                                                                                

22  contains a fixed price not subject to change or modification.               

                                                                                

23  However, a sales agreement for residential construction may be              

                                                                                

24  adjusted up to 15% to reflect changes in construction                       

                                                                                

25  specifications.                                                             

                                                                                

26      (s) A written instrument evidencing a contract or transfer of               

                                                                                

27  property to a person sufficiently related to the transferor to be           


                                                                                

1   considered a single employer with the transferor under                      

                                                                                

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

                                                                                

3   U.S.C. 414.                                                                 

                                                                                

4       (t) A written instrument conveying an interest in  homestead                

                                                                                

5   property for which  a homestead  an exemption is claimed under              

                                                                                

6   section 7cc of the general property tax act, 1893 PA 206, MCL               

                                                                                

7   211.7cc, if the state equalized valuation of that  homestead                

                                                                                

8   property is equal to or lesser than the state equalized valuation           

                                                                                

9   on the date of purchase or on the date of acquisition by the                

                                                                                

10  seller or transferor for that same interest in property.  If                

                                                                                

11  after an exemption is claimed under this subsection, the sale or            

                                                                                

12  transfer of  homestead  property is found by the treasurer to be            

                                                                                

13  at a value other than the true cash value, then a penalty equal             

                                                                                

14  to 20% of the tax shall be assessed in addition to the tax due              

                                                                                

15  under this act to the seller or transferor.                                 

                                                                                

16      (u) A written instrument transferring an interest in property               

                                                                                

17  pursuant to a foreclosure of a mortgage including a written                 

                                                                                

18  instrument given in lieu of foreclosure of a mortgage.  This                

                                                                                

19  exemption does not apply to a subsequent transfer of the                    

                                                                                

20  foreclosed property by the entity that foreclosed on the                    

                                                                                

21  mortgage.                                                                   

                                                                                

22      (v) A written instrument conveying an interest from a                       

                                                                                

23  religious society in property exempt from the collection of taxes           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1       Enacting section 1.  This amendatory act does not take                      

                                                                                

2   effect unless Senate Bill No. _____ or House Bill No. 4189                  

                                                                                

3   (request no. 01070'03) of the 92nd Legislature is enacted into              

                                                                                

4   law.