This bill amends the existing law regarding the taxation of written instruments that transfer interests in real property, specifically focusing on exemptions from this tax. The amendments clarify that certain instruments are exempt, including those with a consideration value of less than $100, contracts not performed wholly within Michigan that involve land outside the state, and instruments that the state cannot tax under the United States Constitution or federal statutes. Additionally, the bill specifies exemptions for various types of instruments, such as those given as security, leases, and transfers related to underground gas storage, among others.

The bill also revises the language surrounding exemptions to enhance clarity. For instance, it changes "shall be" to "are" in reference to exempt instruments, and modifies phrases to ensure consistency in legal terminology, such as changing "which" to "that." Furthermore, it introduces new categories of exempt instruments, including those involving spouses and certain court orders, while also specifying conditions under which these exemptions apply. The enactment of this bill is contingent upon the approval of related resolutions that would amend the state constitution.

Statutes affected:
House Introduced Bill: 207.505