SENATE BILL No. 1191

March 30, 2000, Introduced by Senators STILLE, EMMONS, GOUGEON, BENNETT,

YOUNG, JAYE and VAUGHN and referred to the Committee on Finance.

A bill to amend 1993 PA 330, entitled

"State real estate transfer tax act,"

by amending section 6 (MCL 207.526), as amended by 1994 PA 255.

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 consider-

4 ation 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.

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

2 or discharge of the security interest.

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

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

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

6 assessable as personal property.

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

8 and interest for underground gas storage purposes.

9 (h) Any of the following written instruments:

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

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

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

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

14 in his or her official capacity.

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

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

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

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

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

20 in his or her official capacity.

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

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

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

24 loan guaranteed or insured by the grantee.

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

26 creating or disjoining a tenancy by the entireties in the

27 grantors or the grantor and his or her spouse.

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1 (j) A conveyance from a mother or father to a son or

2 daughter or stepchild AN INDIVIDUAL TO THAT INDIVIDUAL'S CHILD,

3 STEPCHILD, or adopted child.

4 (k) A conveyance from a grandmother or grandfather to a

5 grandchild or step-grandchild AN INDIVIDUAL TO THAT INDIVIDUAL'S

6 GRANDCHILD, STEP-GRANDCHILD, or adopted grandchild.

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

8 ordering a transfer, unless a specific monetary consideration is

9 specified or ordered by the court for the transfer.

10 (m) A written instrument used to straighten boundary lines

11 if no monetary consideration is given.

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

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

14 title.

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

16 to the grantee until the total consideration specified in the

17 contract has been paid.

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

19 rights and interests.

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

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

22 property.

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

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

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

26 tains a fixed price not subject to change or modification.

27 However, a sales agreement for residential construction may be

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1 adjusted up to 15% to reflect changes in construction

2 specifications.

3 (s) A written instrument evidencing a contract or transfer

4 of property to a person sufficiently related to the transferor to

5 be considered a single employer with the transferor under

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

7 U.S.C. 414.

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

9 property for which a homestead exemption is claimed under either

10 the school code of 1976, Act No. 451 of the Public Acts of 1976,

11 being sections 380.1 to 380.1852 of the Michigan Compiled Laws or

12 the state education tax act, Act No. 331 of the Public Acts of

13 1993, being sections 211.901 to 211.906 of the Michigan Compiled

14 Laws SECTION 7CC OF THE GENERAL PROPERTY TAX ACT, 1893 PA 206,

15 MCL 211.7CC, if the state equalized valuation of that homestead

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

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

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

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

20 transfer of homestead property is found by the treasurer to be at

21 a value other than the true cash value, then a penalty equal to

22 20% of the tax shall be assessed in addition to the tax due under

23 this act to the seller or transferor.

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

25 erty pursuant to a foreclosure of a mortgage including a written

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

27 exemption does not apply to a subsequent transfer of the

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1 foreclosed property by the entity that foreclosed on the

2 mortgage.

3 (V) A WRITTEN INSTRUMENT CONVEYING AN INTEREST FROM A RELI-

4 GIOUS SOCIETY IN PROPERTY EXEMPT FROM THE COLLECTION OF TAXES

5 UNDER SECTION 7S OF THE GENERAL PROPERTY TAX ACT, 1893 PA 206,

6 MCL 211.7S, TO A RELIGIOUS SOCIETY IF THAT PROPERTY CONTINUES TO

7 BE EXEMPT FROM THE COLLECTION OF TAXES UNDER SECTION 7S OF THE

8 GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.7S.

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