http://www.michigan.gov/taxes/0,1607,7-238-43868-154561--F,00.html
Subject: State Transfer Tax exemption (t)1
MCL 207.526 (t) provides an exemption from State Transfer Tax for the following written
instruments:
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 Complied 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 transferor for the same interest in property. If after an
exemption is claimed under this subsection, the sale or transfer of homestead
property is found by the treasurer to be 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.
If you intend to insure title based on a deed reciting this exemption you must require evidence
that the transaction qualifies:
1) The transferor has claimed the property as a principal residence qualifying for a
homestead exemption;
2) The property's SEV for the calendar year of the transfer must be less than or equal to
the property's SEV for the calendar year the transferor acquired the property; and
3) The property cannot be transferred for consideration exceeding its true cash value for
the year of the transfer.
Tax statements covering the period of acquisition and the date of sale will provide this
information. The true cash value is double the SEV at the time of transfer.
If you sold your home and may have been eligible, you may be eligible for a refund
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