The bill amends the 1966 PA 134, which imposes a tax on written instruments transferring interests in real property. It updates Section 5 to clarify the exemptions from this tax. Notably, it changes the language to specify that certain instruments "are" exempt rather than "shall be." The bill also revises the criteria for exemptions, including contracts or transfers not performed wholly within Michigan, instruments prohibited from taxation under the United States Constitution or federal statutes, and various types of written instruments such as leases, security interests, and those related to mineral rights.

Additionally, the bill introduces new language to specify the types of grantors exempt from the tax, including the United States, the state of Michigan, and their political subdivisions. It also clarifies the treatment of instruments related to foreclosure, boundary line adjustments, and joint tenancies. The enactment of this amendatory act is contingent upon the approval of specific Senate or House Joint Resolutions becoming part of the state constitution.

Statutes affected:
House Introduced Bill: 207.505