Real Estate Transfer Tax

Tax Laws

• MCL 207.505 Sec 5 (County)
• MCL 207.526 Sec. 6 (State)

A written instrument subject to the tax imposed by MCL 207.505 Sec. 5 and MCL 207.526 Sec 6 shall state on its face the total consideration of the real property, or a Real Estate Transfer Valuation Affidavit disclosing the total consideration shall be filed at the time the instrument is presented for recording.

Filing Fee

No filing fee is charged for filing the "Real Estate Transfer Valuation Affidavit," but a statement must be made on the face of the instrument that a real estate transfer valuation affidavit is being filed.

Collection

Transfer tax imposed by each act shall be collected unless the transfer is exempt from either or both acts. Any exemptions to the above named acts must be stated on the face of the instrument presented for recording.

Who Is Taxed

The tax shall be upon the person who is the seller or the grantor.

Exchange Cases

In the case of an exchange of two properties, the deeds transferring title to each are subject to Michigan Real Estate Transfer Tax, and in each case shall be computed on the basis of the actual value of the property conveyed.

Stamps

Documentary stamps shall be purchased only in the county in which the property is located.

Conveyances

Conveyances affecting property situated in more than one county must state the portion of the sale price attributable to each parcel lying in the separate counties and transfer tax must be paid to each county for that portion of the sale price.

Foreclosures

An instrument of foreclosure is subject to transfer tax based on the sale price stated on the face of the instrument.

Easements

A conveyance of an easement or a right of way is subject transfer tax.