When
an instrument is exempt from taxes, use the following
information and insert the letter that is applicable.
207.505 Exemptions(M.S.A. 7.456)(5)
Sec. 5 ( )
Please check with legal counsel
for appropriate use of exemptions.
Section
1, Section 5 of Act No. 134 of the public acts of 1966,
as amended by Act No. 327 of the public acts of 1968,
begin section 297.505 of the compiled laws of 1948
is amended to read as follows:
Sec.
5 the following instruments are exempt from this
act:
(a)
Instruments
where the value of the consideration is less
than $100.00
(b)
Instruments
evidencing contracts or transfers which are not
to be performed wholly within this state insofar
as such instruments include land lying outside
of this state.
(c)
Written
instruments which this state is prohibited from
taxing under the constitution of the statutes
of the United States.
(d)
Instruments
or writings given as security or any assignment
or discharge thereof.
(e)
Instruments
evidencing leases, including oil and gas leases,
or transfers of such leasehold interest.
(f)
Instrument
evidencing any interests which are assessable
as personal property.
(g)
Instruments
evidencing the transfer of rights and interests
for underground gas storage purposes.
(h)
Instruments:
[i]
In
which the grantor is the United States,
the State, any Political Subdivision or
Municipality thereof, or Officer thereof
acting in his official capacity;
[ii]
Given
in foreclosure or in lieu of foreclosure
of a loan made, guaranteed or insured by
the United States, the State, any Political
Subdivision or Municipality thereof or
officer thereof acting in his official
capacity;
[iii]
Given
to the United States, the State, or one
of their officers as grantee, pursuant
to the terms or guarantee or insurance
of a loan guaranteed or insured by the
grantee.
(i)
Conveyances
from a husband or wife or husband and wife creating
or disjoining a tenancy by the entireties in
the grantors or the grantor and his or her spouse.
(j)
Judgments
or orders of courts of recording making or ordering
transfers, except where a specific monetary consideration
is specified or ordered by the court thereof.
(k)
Instruments
used to straighten boundary lines where no monetary
consideration is given.
(l)
Instruments
to confirm titles already vested in grantees,
such as quitclaim deed to correct flaws in the
titles.
(m)
Land
contract whereby the legal title does not pass
to the grantor until the total consideration
specified in the contract has been paid.
(n)
Instruments
evidencing the transfer of mineral rights and
interest.
(o)
Instruments
creating a joint Tenancy between two (2) or more
persons where at least one (1) of the persons
already owned the property.
207.506
Exemptions
Transfer to receivers, administrators or trustees in
bankruptcy or insolvency proceedings.
207.508
Section 10
It is the intent of this act that the tax imposed by
this act be paid only once. No tax shall be imposed
on any instrument which transfers ownership of property
or an interest therein if such instrument is given
and the transfer made pursuant to a written executory
contract upon which the tax has been previously paid.
Any instrument which is evidence of indebtedness or
of a contract right shall be subject to the tax imposed
by this act only to the extent of the new consideration
given therefore. An instrument which is given to supplement,
reform, or correct a prior instrument shall be subject
to the tax imposed by this act only to the extent of
the new consideration given thereof.
Any
instrument which would be subject to the tax imposed
by this act except for the provisions of this section
shall state on the face that the instrument is exempt
by reason of the prior payment or partial payment of
the tax on another instrument executed on part of the
same transaction and the date of payment.
When
an instrument is exempt from taxes,
use the following information and insert the letter that
is applicable.
MCLA 207.526(6)( )
Please check with legal counsel
for appropriate use of exemptions.
Sec.
5 the following instruments are exempt from this
act:
(a)
A
written instrument in which the value of the
consideration is less than $100.00.
(b)
A
written instrument evidencing a contract or transfer
that is not to be performed wholly within this
state only to the extent the written instrument
includes land lying outside of the state.
(c)
A
written instrument that this state is prohibited
from taxing under the United States constitution
or federal statutes.
(d)
A
written instrument given as security or an assignment
or discharge of the security interest.
(e)
A
written instrument evidencing a lease, including
oil and gas lease, or transfer of a leasehold
interest.
(f)
A
written instrument evidencing an interest that
is assessable as personal property.
(g)
A
written instrument evidencing the transfer of
a right and interest for underground gas storage
purposes.
(h)
Any
of the following written instruments:
[i]
A
written instrument in which the grantor
is the United States, this state, a political
subdivision or municipality of this state,
or an officer of the United States, or
this state, or a political subdivision
or municipality of this state acting in
his or her official capacity.
[ii]
A
written instrument given in lieu of foreclosure
of a loan made, guaranteed or insured by
the United States, the state, a political
subdivision or municipality of this state,
or an officer of the United States, or
this state, a political subdivision or
municipality of this state acting in his
or her official capacity.
[iii]
A
written instrument given to the United
States, the state, or one of their officers
acting in an official capacity as grantee,
pursuant to the terms of guarantee or insurance
of a loan guaranteed or insured by the
grantee.
(i)
A
conveyance from a husband or wife or husband
and wife creating or disjoining a tenancy by
the entireties in the grantors or the grantor
and his or her spouse.
(j)
A
conveyance from a mother or father to a son or
daughter or stepchild or adopted child.
(k)
A
conveyance from a grandmother or grandfather
to a grandchild or step-grandchild or adopted
grandchild.
(l)
A
judgment or order of a court of record making
or ordering a transfer, unless a specific monetary
consideration is specified or ordered by the
court for the transfer
(m)
A
written instrument used to straighten boundary
lines if no monetary consideration is given.
(n)
A
written instrument to confirm title already vested
in a grantee, including a quitclaim deed to correct
a flaw in title.
(o)
A
land contract in which legal title does not pass
to the grantee until the total consideration
specified in the contract has been paid.
(p)
A
written instrument evidencing the transfer of
mineral rights and interests.
(q)
A
written instrument creating a joint tenancy between
two or more persons if at least one of the persons
already owns the property.
(r)
A
transfer made pursuant to a bona fide sales agreement
made before the date the tax is imposed. If the
sales agreement cannot be withdrawn or altered,
or contains a fixed price not subject to change
or modification. However, a sales agreement for
residential construction may be adjusted up to
15% to reflect changes in construction specifications.
(s)
A
written instrument evidencing a contract or transfer
of property to a person sufficiently related
to the transferor to be considered a single employer
with the transferor under section 414(b) or (c)
of the Internal revenue code of 1986, as amended.
(t)
A
written instrument conveying an interest in homestead
property for which a homestead exemption is claimed
under either the school code of 1976, Act No.
451 of the Public Acts of 1976, being sections
380.1 to 380.1852 of the Michigan Compiled Laws
or the state education tax act, Act No. 331 of
the Public Acts of 1993, being sections 211.901
to 211.906 of the Michigan Compiled Laws. If
the state equalized valuation of that homestead
property is equal to or lesser than the state
equalized valuation on the date of purchase or
on the date of acquisition by the seller or the
transferor for that same interest in property.
If after an exemption is claimed under this sub-section,
the sale or transfer of homestead property is
found by the treasurer to be at a value other
than the true cash value, then a penalty equal
to 20% of the tax shall be assessed in addition
to the tax due under this act to the seller or
transferor.
(u)
A
written instrument transferring an interest in
property pursuant to a foreclosure of a mortgage
including a written instrument given in lieu
of foreclosure of a mortgage. This exemption
does not apply to a subsequent transfer of the
foreclosed property by the entity that foreclosed
on the mortgage.
(v)
A
written instrument conveying an interest from
a religious society in property exempt from the
collection of taxes under section 7s of the general
property tax act, 1893 PA 206, MCL211.7s, to
a religious society if that property continues
to be exempt from the collection of taxes under
section 7s of the general property tax act, 1893
PA 206,MCL211.7s.
