Application For State Real Estate Transfer Tax (Srett) Refund Form (Page 2 of 2) in pdf

2796, Page 2

Frequently Claimed Exemptions from the State Real Estate Transfer Tax (SRETT)

Under Section 6 of PA 217 of 2015, as amended, qualified taxpayers may claim an exemption from the SRETT. Enter the section number

for the exemption you are claiming in Part 2 of this form. To view all of the exemptions listed in PA 330 of 1993, as amended, see MCL

207.526 at the Michigan Legislature’s website at The exemptions used most frequently are listed below.

(a) A written instrument in which the value of the consideration for the property is less than $100.00. NOTE: Examples of transfers that

qualify for exemption under section 6(a) are gifts or inheritances. Provide proof of the gift or inheritance.

(i)

A conveyance from a spouse or married couple creating or disjoining a tenancy by the entireties in the grantors or the grantor and

his or her spouse.

(j) A conveyance from an individual to that individual’s child, stepchild, or adopted child. NOTE: Must submit documentation of

relationship. Birth certificates, adoption papers and marriage licenses are documents which may provide proof of relationship.

(k) A conveyance from an individual to that individual’s grandchild, step-grandchild, or adopted grandchild. NOTE: Must submit

documentation of relationship. Birth certificates, adoption papers and marriage licenses are documents which may provide proof of

relationship.

(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. NOTE: Must submit a copy of the judgment or order.

(o) A land contract in which the legal title does not pass to the grantee until the total consideration specified in the contract has been paid.

NOTE: Must submit a copy of the signed land contract.

(u) A written instrument conveying an interest in property for which an exemption is claimed under section 7cc of the general property tax

act, 1893 PA 206, MCL 211.7cc, if the state equalized valuation of that 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 that same interest in property and the transaction

was for a price at which a willing buyer and a willing seller would arrive through an arms-length negotiation. Notwithstanding section

22 of 1941 PA 122, MCL 205.22, and section 3(4) of this act, if the seller or the buyer who has paid the tax on behalf of the seller

believes that the property was eligible for an exemption under this subdivision at the time of transfer, the seller or the buyer who has

paid the tax on behalf of the seller may request a refund from the department in a form and manner determined by the department.

This subdivision is retroactive and applies to a sale, exchange, assignment, or transfer on or after June 24, 2011.

(v) 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.

ADDITIONAL INFORMATION

•

You are required to submit either a copy of the RECORDED DEED OR form 2705 (L-4258) Real Estate Transfer Tax Valuation

Affidavit and an official receipt from county treasurer as proof that the SRETT was paid. The recorded deed has the tax stamp and

date stamp from the Register of Deeds which shows the amount of county and state transfer taxes paid and the date the deed was

recorded. Contact the Register of Deeds in the county in which the property is located or the title company to obtain a copy of the

required documents.

•

The Settlement Statement (HUD-1) shows which party paid the various costs associated with the purchase and sale of the property.

The Settlement Statement lists the costs in a format showing the costs and credits of the seller on one side of the document and of

the buyer on the other side. The Settlement Statement must list the costs and credits of both the seller and the buyer. NOTE: Only

the party who paid SRETT may claim a refund.

•

State Equalized Value (SEV) is a monetary valuation assigned to property by the local assessor. The SEV is found on your property

tax statement. In order to qualify for the refund, the SEV in the year of sale must be less than or equal to the SEV in the year you

originally acquired the property. Documents must be submitted to show the amounts of the SEV at the time of your acquisition of

the property and at the time of sale. Submit a copy of your property tax statements. If you did not retain copies of your property tax

statements, contact your local assessor or look online to obtain documentation that indicates the SEV of the property on the date of

acquisition and the date of sale of the property.

•

“Value” is defined as “the current or fair market worth in terms of legal monetary exchange at the time of the transfer. The tax shall

be based on the value of the real property transferred and shall be collected at the time the instrument of conveyance is submitted

for recording. In the case of a controlling interest in any entity that owns real property, value shall mean the value of the real property

or interest in the real property, apportioned based on the percentage of the ownership interest transferred or acquired in the entity.”

See MCL 207.522(g).

•

Conveyances from a trust are not exempt from SRETT under section 6(j) or section 6(k). To qualify for an exemption from SRETT, a

conveyance must be made from the individual directly to that individual’s child or grandchild, not from that individual’s trust or another

legal entity to the individual’s child or grandchild. See MCL 207.526(j) and (k).

•

Conveyances from a child to that individual’s parents are not exempt. Conveyances from a grandchild to that individual’s grandparents

are not exempt.

•

Conveyances from a parent to the spouse of that individual’s child are not exempt from SRETT. Conveyances from a grandparent to

the spouse of that individual’s grandchild are not exempt from SRETT.

•

Conveyances between siblings are not exempt from SRETT.

Application For State Real Estate Transfer Tax (Srett) Refund Form Page 2

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