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This is in response to your email submitted on February 5, 2001, which we received today. Riverbank Finance LLC is a Michigan mortgage company in Grand Rapids, MI specializing in mortgage home loans for both refinancing and new home purchase mortgages. Before the grantor or grantee records the deed, the grantor must pay transfer taxes in Michigan. If Treasury's determination of tax liability differs from the amount collected when the title was transferred, the purchaser must pay the difference plus interest and possible penalty. In counties with over two million residents, the current tax law allows the rate to increase to $0.75 per $500 (0.15%). If you exceed these cutoffs, you can reduce your tax exposure by adding the transfer tax onto your cost basis, the price you paid for your home when you bought it. Let's look at an example: Say you bought your home for $200,000 — the cost basis — and you're currently selling it for $500,000. ©2020 Riverbank Finance LLC, All rights reserved. State Transfer Tax Exemptions (MCL 207.526) County Transfer Tax Exemptions (MCL 207.505) The tax shall be upon the person who is the seller or the grantor. Once the deed is filed and recorded, the transfer is deemed legal. It includes state-by-state profiles that provide baseline data to help law… REAL ESTATE TRANSFER TAX Act 134 of 1966 AN ACT to impose a tax upon written instruments which transfer any interest in real property; to provide for the administration of this act; and to provide penalties for violations of this act. Who Pays Transfer Taxes in Michigan: the Buyer or the Seller? By subscribing to our mailing list you will get the latest news from us. The seller calculator will estimate the Michigan state and county transfer tax. However, transfer taxes in some areas are "deductible" from one another: the tax you pay to one level of government may reduce the tax you owe to another. To Whom It May Concern: This is in response to your email submitted on February 5, 2001, which we received today. When you transfer real estate, they charge a fee as a percentage of the sales price. The fee for filing a deed varies by Michigan county, but ranges from $15 to $25, as of 2011. The title search and examination fees are included in the title insurance premium in Michigan. Since most states do not charge sales tax on real estate sales, transfer taxes act as somewhat of a stand-in that allows the state and county to generate revenue on home sales. Houston, TX 77056 (800) STEWART stewart.com 1980 Post Oak Boulevard Houston, TX 77056 (800) STEWART stewart.com SISCO-1414-89-8 10/14 2K Click here for State Transfer Tax Exceptions; DISCLAIMER: The information provided by this calculator is intended for illustrative purposes only. Conversely, if a sale is made and delivered to a Michigan customer but the property’s ownership transfers outside Michigan, the seller should pay use tax. More. The tool will output the county tax, state tax and total tax due on sale. Our extensive list of mortgage programs allows us to offer competitive low wholesale mortgage rates. Not all states have mandated transfer taxes, and these taxes can vary greatly on the state, local, and regional levels. This comprehensive report assesses tax fairness by measuring effective state and local tax rates paid by all income groups.No two state tax systems are the same; this report provides detailed analyses of the features of every state tax code. Riverbank Finance LLC does not provide tax or legal advice. There are other non-tax related issues that should be considered before attempting the property transfer by deed, will, or trust. Easily calculate the Michigan home seller closing costs and seller "net" proceeds with this calculator. Unless otherwise provided in the Purchase Agreement the Seller is responsible for paying the Property Transfer Tax. However, if you paid 0.86% in transfer taxes upon closing ($4,300), you can add that onto the cost basis to bring it up to $204,300. Example: For the latest tax year, your Michigan corporation had taxable income of $100,000. For instance, the state of California counts transfer taxes that you pay to your county as credit against your state tax, resulting in a lower total tax … The tax rate is $3.75 for each $500 or fraction thereof of the total value of the property transferred. History:€1966, Act 134, Eff. michigan real estate transfer tax If the value of the real estate transferred is $100 or more, payment of State and County transfer tax is 24,500.01 25,000.00 187.5 27.5 215 … No negotiation necessary 5 ( Act 134 of 1966 ) - state, real estate transfer tax may caught. 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