TRANSFER TAX: RELIGIOUS EXEMPTION - S.B. 1191: COMMITTEE SUMMARY



Senate Bill 1191 (as introduced 3-30-00)

Sponsor: Senator Leon Stille

Committee: Finance


Date Completed: 4-11-00


CONTENT


The bill would amend the State Real Estate Transfer Tax Act to exempt from the tax a written instrument that conveyed an interest in property from a religious society, that is exempt from the collection of taxes under Section 7s of the General Property Tax Act, to a religious society, if the property would continue to be exempt from taxation under Section 7s. Section 7s exempts from property taxes houses of public worship, the furniture in them, and the land on which they stand; any parsonage owned and occupied as a parsonage by a religious society of the State; and buildings or other facilities owned by a religious society and used predominantly for religious services or for teaching the society's religious truths and beliefs.


MCL 207.526 - Legislative Analyst: G. Towne


FISCAL IMPACT


In a typical year, it is estimated this bill would reduce State real estate transfer tax revenue by less than $1 million. This fiscal impact could vary widely in any particular year depending on the number of church structures that are sold and their respective values. This loss in revenue would affect the School Aid Fund.


- Fiscal Analyst: J. Wortley

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.