SENATE BILL No. 416

 

 

April 29, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1993 PA 330, entitled                                             

                                                                                

    "State real estate transfer tax act,"                                       

                                                                                

    by amending sections 2, 3, 5, 9, and 16 (MCL 207.522, 207.523,              

                                                                                

    207.525, 207.529, and 207.536), section 5 as amended by 1994 PA             

                                                                                

    224 and section 9 as amended by 1994 PA 255.                                

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2.  As used in this act:                                               

                                                                                

2       (a) "Initial improvements" means improvements to real                       

                                                                                

3   property made prior to the issuance of a certificate of                     

                                                                                

4   occupancy.                                                                  

                                                                                

5       (b)  (a)  "Person" means an individual, partnership,                        

                                                                                

6   corporation, limited liability company, association, governmental           

                                                                                

7   entity, or other legal entity.  If used in a penalty clause,                

                                                                                

8   person includes the partners or members of a firm, a partnership,           

                                                                                

9   or an association and the officers of a corporation.                        

                                                                                


                                                                                

1       (c)  (b)  "Property" includes land, tenements, real estate,                 

                                                                                

2   and real property and all rights to and interests in land,                  

                                                                                

3   tenements, real estate, or real property.                                   

                                                                                

4       (d)  (c)  "Tax" means the state real estate transfer tax                    

                                                                                

5   imposed under this act.                                                     

                                                                                

6       (e)  (d)  "Treasurer" means the state treasurer.                            

                                                                                

7       (f) "Value of initial improvements" means the current or fair               

                                                                                

8   market worth in terms of legal monetary exchange at the time of             

                                                                                

9   completion of the initial improvements.                                     

                                                                                

10      (g)  (e)  "Value of real property" means the current or fair                

                                                                                

11  market worth in terms of legal monetary exchange at the time of             

                                                                                

12  the transfer.                                                               

                                                                                

13      Sec. 3.  (1) There is imposed, in addition to all other                     

                                                                                

14  taxes, a tax upon the following written instruments executed                

                                                                                

15  within this state when the instrument is recorded:                          

                                                                                

16      (a) Contracts for the sale or exchange of property or any                   

                                                                                

17  interest in the property or any combination of sales or exchanges           

                                                                                

18  or any assignment or transfer of property or any interest in the            

                                                                                

19  property.                                                                   

                                                                                

20      (b) Deeds or instruments of conveyance of property or any                   

                                                                                

21  interest in property, for consideration.                                    

                                                                                

22      (2) The person who is the seller or grantor of the property                 

                                                                                

23  is liable for the tax imposed under  this act  subsection (1).              

                                                                                

24      (3) There is imposed, in addition to all other taxes, a tax                 

                                                                                

25  upon the value of initial improvements, only if the purchase                

                                                                                

26  agreement or other written agreement, covenant, or restriction              

                                                                                

27  limits the transferee's choice of construction contractor or if             


                                                                                

1   the initial improvements are constructed by the transferor or an            

                                                                                

2   affiliate of the transferor.                                                

                                                                                

3       Sec. 5.  (1) Beginning on January 1, 1995, except as                        

                                                                                

4   otherwise provided in this section, the tax imposed under                   

                                                                                

5   sections 3 and 4 is levied at the rate of $3.75 for each $500.00            

                                                                                

6   or fraction of $500.00 of the  total  value of  the  real                   

                                                                                

7   property being transferred and of the value of initial                      

                                                                                

8   improvements.                                                               

                                                                                

9       (2) A written instrument subject to the tax imposed by this                 

                                                                                

10  act shall state on its face the  total  value of  the  real                 

                                                                                

11  property being transferred unless an affidavit is attached to the           

                                                                                

12  written instrument declaring the  total  value of  the  real                

                                                                                

13  property being transferred.  The form of the affidavit shall be             

                                                                                

14  prescribed by the department of treasury.  If the sale or                   

                                                                                

15  transfer is of a combination of real and personal property, the             

                                                                                

16  tax shall be imposed only upon the transfer of the real property            

                                                                                

17  if the values of the real and personal property are stated                  

                                                                                

18  separately on the face of the written instrument or if an                   

                                                                                

19  affidavit is attached to the written instrument setting forth the           

                                                                                

20  respective values of the real and personal property.                        

                                                                                

21      Sec. 9.  (1) The treasurer shall prescribe and prepare for                  

                                                                                

22  use by a county treasurer adhesive stamps of the denominations              

                                                                                

23  and quantities that are necessary for the payment of the tax                

                                                                                

24  imposed by this act and the tax imposed by  Act No. 134 of the              

                                                                                

25  Public Acts of 1966, being sections 207.501 to 207.513 of the               

                                                                                

26  Michigan Compiled Laws  1966 PA 134, MCL 207.501 to 27.513.  The            

                                                                                

27  county treasurer shall requisition the stamps as required.                  


                                                                                

1       (2) The treasurer shall prescribe conditions under which a                  

                                                                                

2   county treasurer may utilize a tax meter machine to evidence the            

                                                                                

3   payment of the tax imposed under this act or the tax imposed                

                                                                                

4   under  Act No. 134 of the Public Acts of 1966  1966 PA 134, MCL             

                                                                                

5   207.501 to 207.513.  The treasurer shall provide for the use of a           

                                                                                

6   tax meter machine or for the sale of the stamps in  such  the               

                                                                                

7   places  as  the treasurer considers necessary.                              

                                                                                

8       (3) The treasurer may prescribe alternate means for the                     

                                                                                

9   county treasurer to evidence the payment of the tax under this              

                                                                                

10  act.  The treasurer shall provide the alternative means to the              

                                                                                

11  county treasurer if alternative means are used to evidence the              

                                                                                

12  payment of the tax under this act.                                          

                                                                                

13      (4) An owner of property shall pay the tax imposed on initial               

                                                                                

14  improvements to the county treasurer within 30 days after                   

                                                                                

15  issuance of a certificate of occupancy on the property.                     

                                                                                

16      Sec. 16.  (1) A city or township assessor shall notify the                  

                                                                                

17  county treasurer of initial improvements the assessor believes              

                                                                                

18  are subject to the tax under this act.  If the property owner has           

                                                                                

19  not paid the tax on initial improvements under this act, the                

                                                                                

20  county treasurer shall notify the treasurer.                                

                                                                                

21      (2) This act shall be administered by the  revenue division                 

                                                                                

22  of the  department of treasury under  Act No. 122 of the Public             

                                                                                

23  Acts of 1941, being sections 205.1 to 205.31 of the Michigan                

                                                                                

24  Compiled Laws  1941 PA 122, MCL 205.1 to 205.31The department            

                                                                                

25  of treasury shall assess the unpaid tax on initial improvements             

                                                                                

26  under the provisions of 1941 PA 122, MCL 205.1 to 205.31.                   

                                                                                

27      Enacting section 1.  This amendatory act takes effect                       


                                                                                

1   October 1, 2003.