There has been a lot of buzz going around regarding the new Michigan Real Estate Transfer Tax credit. We wanted to take this opportunity to inform everyone the details of this credit. Below are instructions detailing if you qualify and how you can claim this credit. 

House Bill 4173, now Public Act 217 of 2015, revises the Michigan Real Estate Transfer Tax to clarify two items:

 

1.       The party that paid the transfer tax may request the refund if a refund is due, and

2.       Clarify that Exemption “U” applies when the SEV at the time of sale is less than or equal to the original SEV.

 

The Michigan Supreme Court recently broadened the application of Exemption “U” by removing the requirement that True Cash Value be realized in a transfer.  Public Act 217 reflects this change, offering important clarity and tax relief to sellers.  In addition, this new law gives buyers the same refund rights as sellers when it is determined that the transfer tax was paid unnecessarily. 

 

If a property owner is qualified and seeking a refund of the tax, the form at the link below should be completed as if the person is the seller of the home.  The following documents must also be attached to the completed form:

 

1.       Copy of the Settlement Statement (HUD-1)

2.       Copy of the RECORDED DEED containing the Tax Stamp.

 

Go to the following link for the application and refund process:   https://www.michigan.gov/documents/2796f7_2601_7.pdf