Carla L'Huillier, Register of Deeds
234 W. Baraga Avenue
Marquette, Michigan 49855
PH: (906) 225-8415 FAX: (906) 225-8420

STATE REAL ESTATE TRANSFER TAX ACT (EXCERPT)

Act 330 of 1993

207.526 Written instruments and transfers of property exempt from tax.

Sec. 6. The following written instruments and transfers of property are exempt from the tax imposed by
this act:
(a) A written instrument in which the value of the consideration for the property is less than $100.00.
(b) A written instrument evidencing a contract or transfer that is not to be performed wholly within this
state only to the extent the written instrument includes land lying outside of this state.
(c) A written instrument that this state is prohibited from taxing under the United States constitution or
federal statutes.
(d) A written instrument given as security or an assignment or discharge of the security interest.
(e) A written instrument evidencing a lease, including an oil and gas lease, or a transfer of a leasehold
interest.
(f) A written instrument evidencing an interest that is assessable as personal property.
(g) A written instrument evidencing the transfer of a right and interest for underground gas storage
purposes.
(h) Any of the following written instruments:
(i) A written instrument in which the grantor is the United States, this state, a political subdivision or
municipality of this state, or an officer of the United States or of this state, or a political subdivision or
municipality of this state, acting in his or her official capacity.
(ii) A written instrument given in foreclosure or in lieu of foreclosure of a loan made, guaranteed, or
insured by the United States, this state, a political subdivision or municipality of this state, or an officer of the
United States or of this state, or a political subdivision or municipality of this state, acting in his or her official
capacity.
(iii) A written instrument given to the United States, this state, or 1 of their officers acting in an official
capacity as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the
grantee.
(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.
(k) A conveyance from an individual to that individual's grandchild, step-grandchild, or adopted
grandchild.
(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.
(m) A written instrument used to straighten boundary lines if no monetary consideration is given.
(n) A written instrument to confirm title already vested in a grantee, including a quitclaim deed to correct a
flaw in title.
(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.
(p) A conveyance that meets 1 of the following:
(i) A transfer between any corporation and its stockholders or creditors, between any limited liability
company and its members or creditors, between any partnership and its partners or creditors, or between a
trust and its beneficiaries or creditors when the transfer is to effectuate a dissolution of the corporation,
limited liability company, partnership, or trust and it is necessary to transfer the title of real property from the
entity to the stockholders, members, partners, beneficiaries, or creditors.
(ii) A transfer between any limited liability company and its members if the ownership interests in the
limited liability company are held by the same persons and in the same proportion as in the limited liability
company prior to the transfer.
(iii) A transfer between any partnership and its partners if the ownership interests in the partnership are
held by the same persons and in the same proportion as in the partnership prior to the transfer.
(iv) A transfer of a controlling interest in an entity with an interest in real property if the transfer of the real
property would qualify for exemption if the transfer had been accomplished by deed to the real property
between the persons that were parties to the transfer of the controlling interest.
(v) A transfer in connection with the reorganization of an entity and the beneficial ownership is not
changed.
(q) A written instrument evidencing the transfer of mineral rights and interests.
(r) A written instrument creating a joint tenancy between 2 or more persons if at least 1 of the persons
Rendered Thursday, June 2, 2016 Page 1 Michigan Compiled Laws Complete Through PA 141 of 2016
Ó Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov
already owns the property.
(s) A transfer made pursuant to a bona fide sales agreement made before the date the tax is imposed under
sections 3 and 4, if the sales agreement cannot be withdrawn or altered, or contains a fixed price not subject to
change or modification.
(t) A written instrument evidencing a contract or transfer of property to a person sufficiently related to the
transferor to be considered a single employer with the transferor under section 414(b) or (c) of the internal
revenue code of 1986, 26 USC 414.
(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.
(w) A written instrument conveying an interest from a religious society in property exempt from the
collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s, to a religious
society if that property continues to be exempt from the collection of taxes under section 7s of the general
property tax act, 1893 PA 206, MCL 211.7s.
 
History: 1993, Act 330, Eff. Apr. 1, 1994;¾Am. 1994, Act 3, Eff. Mar. 30, 1994;¾Am. 1994, Act 255, Imd. Eff. July 5, 1994;¾
Am. 2000, Act 203, Imd. Eff. June 27, 2000;¾Am. 2003, Act 128, Eff. Jan. 1, 2004;¾Am. 2008, Act 473, Eff. Jan. 1, 2007;¾Am.
2015, Act 217, Imd. Eff. Dec. 15, 2015.
 
Compiler's note: Enacting section 2 of Act 473 of 2008 provides:

"Enacting section 2. This amendatory act shall take effect January 1, 2007."