HOUSE BILL NO. 4778
June 15, 2023, Introduced by Reps. Hope and Morgan and referred to the Committee on
Government Operations.
A bill to amend 1966 PA 134, entitled
"An act to impose a tax upon written instruments which transfer any
interest in real property; to provide for the administration of
this act; and to provide penalties for violations of this act,"
by amending section 5 (MCL 207.505).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 5. The following instruments and transfers shall be are
2 exempt from this act:
3 (a) Instruments where the value of the consideration is less
4 than $100.00.
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1 (b) Instruments evidencing contracts or transfers which that
2 are not to be performed wholly within this state insofar as such
3 only to the extent that the instruments include land lying outside
4 of this state.
5 (c) Written instruments which that this state is prohibited
6 from taxing under the constitution United States Constitution or
7 federal statutes. of the United States.
8 (d) Instruments or writings given as security or any
9 assignment or discharge thereof.of a security interest.
10 (e) Instruments evidencing leases, including oil and gas
11 leases, or transfers of such leasehold interests.
12 (f) Instruments evidencing any interests which that are
13 assessable as personal property.
14 (g) Instruments evidencing the transfer of rights and
15 interests for underground gas storage purposes.
16 (h) Instruments (i) Any of the following instruments:
17 (i) Instruments in which the grantor is the 1 of the following:
18 (A) The United States. , the
19 (B) This state. , any
20 (C) A political subdivision or municipality thereof, of this
21 state. or
22 (D) An officer thereof of a governmental entity listed in sub-
23 subparagraphs (A) to (C), acting in his the officer's official
24 capacity. ; (ii)
25 (ii) Instruments given in foreclosure or in lieu of foreclosure
26 of a loan made, guaranteed, or insured by the 1 of the following:
27 (A) The United States. , the
28 (B) This state. , any
29 (C) A political subdivision or municipality thereof of this
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1 state. or
2 (D) An officer thereof of a governmental entity listed in sub-
3 subparagraphs (A) to (C), acting in his the officer's official
4 capacity. ; (iii)
5 (iii) Instruments given to the United States, the this state, or
6 1 of their officers as grantee, pursuant to the terms or guarantee
7 or insurance of a loan guaranteed or insured by the grantee.
8 (i) Conveyances from a husband or wife an individual to the
9 individual's spouse or husband and wife both spouses creating or
10 disjoining a tenancy by the entireties in the grantors or the
11 grantor and his or her the grantor's spouse.
12 (j) Judgments or orders of courts of record making or ordering
13 transfers, except where if a specific monetary consideration is
14 specified or ordered by the court therefor.of record.
15 (k) Instruments used to straighten boundary lines where if no
16 monetary consideration is given.
17 (l) Instruments to confirm titles already vested in grantees,
18 such as including quitclaim deeds to correct flaws in titles.
19 (m) Land contracts whereby the legal title does not pass to
20 the grantee until the total consideration specified in the contract
21 has been paid.
22 (n) Instruments evidencing the transfer of mineral rights and
23 interests.
24 (o) Instruments creating a joint tenancy between 2 or more
25 persons where if at least 1 of the persons already owned the
26 property.
27 Enacting section 1. This amendatory act does not take effect
28 unless Senate Joint Resolution ____ or House Joint Resolution F
29 (request no. 00367'23) of the 102nd Legislature becomes a part of
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1 the state constitution of 1963 as provided in section 1 of article
2 XII of the state constitution of 1963.
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Statutes affected: House Introduced Bill: 207.505