ESTATE TAX: REDEMPTION PAYMENT S.B. 993: COMMITTEE SUMMARY
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Senate Bill 993 (as introduced 12-1-09)
Sponsor: Senator Cameron S. Brown
Committee: Banking and Financial Institutions


Date Completed: 12-8-09

CONTENT The bill would amend the Michigan Estate Tax Act to increase a fee that must accompany any redemption payment made to the register of deeds under the Act from $1 to $10.

The Act imposes a tax on the transfer of nonexempt real property in the State upon a person's death. The tax and interest on the tax are a lien on property transferred until paid, unless payment is deferred as provided under the Act.


The Attorney General may file an action to enforce a lien against any property. The complaint must ask that the court determine the amount due and that the defendant pay that amount and the costs of the proceeding.


If the owner of the property is in default of that payment, the court may order that the property be sold to satisfy the taxes, interest, and costs.


Within six months after the date of sale, the owner of the property may redeem the entire premises by paying to the register of deeds in whose office the deed is deposited the amount that was bid, with interest, and a fee of $1 for the care and custody of the redemption money. The bill would increase that fee to $10.


Currently, the date by which the property must be redeemed must be stated in the certificate of the person making the sale. The bill would delete that provision.


Under the Act, if property is redeemed, the register of deeds must write on the face of the record the word "Redeemed" with the date the entry is made and the register's official signature. The bill would delete that requirement.


MCL 205.203 Legislative Analyst: Curtis Walker

FISCAL IMPACT
The proposed fee increase would result in additional revenue to local units of government. No statewide data are available on the revenue generated from the current fee. Some counties do not charge a fee for care and custody of the redemption money.

Fiscal Analyst: Bill Bowerman

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. sb993/0910