This bill amends the 1966 PA 134, which imposes a tax on written instruments transferring interests in real property. The amendment specifically revises Section 5 to clarify the exemptions from this tax. Notably, it changes the language from "shall be" to "are" regarding the exemptions, and modifies the phrasing in several subsections to enhance clarity. For example, it specifies that instruments evidencing contracts or transfers that are not performed wholly within Michigan are exempt only to the extent that they include land outside the state. Additionally, it updates the language to reflect that certain instruments are exempt if they are prohibited from taxation under the United States Constitution or federal statutes.

The bill also introduces new categories of exempt instruments, including those given as security interests, instruments evidencing leases, and those related to underground gas storage. It further clarifies exemptions for instruments involving governmental entities, transfers between spouses, and court orders, among others. The enactment of this amendment is contingent upon the approval of specific joint resolutions that would become part of the state constitution.

Statutes affected:
House Introduced Bill: 207.505