The Michigan State Real Estate Transfer Tax Act of 1993 [1] outlines various exemptions from the tax it imposes on written instruments and property transfers:
1. Instruments where the consideration is less than $100.
2. Instruments not wholly performed within the state if they involve out-of-state land.
3. Instruments exempt under the U.S. Constitution or federal statutes.
4. Security instruments or assignments/discharges thereof.
5. Instruments for leases, including oil and gas leases.
6. Instruments assessing interests as personal property.
7. Instruments for underground gas storage rights.
8. Instruments involving governmental entities or foreclosures by such entities.
9. Instruments between spouses creating tenancies by the entirety.
10. Instruments between individuals and their children or grandchildren.
11. Court orders or judgments for transfers without specific monetary consideration.
12. Instruments for boundary line adjustments without consideration.
13. Instruments confirming already vested titles or correcting title flaws.
14. Land contracts where legal title transfers after full payment.
15. Transfers between entities and their owners or creditors to dissolve or reorganize.
16. Transfers involving mineral rights and interests.
17. Instruments creating joint tenancies among co-owners.
18. Transfers under bona fide sales agreements predating tax imposition.
19. Transfers involving related parties under IRS code section 414(b) or (c).
20. Transfers where the seller claims property tax exemption under specific conditions.
21. Transfers resulting from mortgage foreclosures, including deeds in lieu of foreclosure.
22. Transfers between religious societies for tax-exempt properties under specific statutes.
These exemptions aim to clarify instances exempt from the state real estate transfer tax, covering a wide range of scenarios from minor considerations to complex legal arrangements and statutory conditions.
For more information, contact your ShindelRock tax professional. [2]