County Tax Exemptions

County Transfer Tax Exemptions

Welcome to our guide on county transfer tax exemptions. Below, you’ll find important information about exemptions as enacted by the State of Michigan.

Exemptions Overview

Here are the types of transfers and written instruments that are exempt from the real estate transfer tax:

  • Transfers where the value is less than $100.
  • Transfers involving land outside Michigan.
  • Transfers that cannot be taxed under U.S. law.
  • Documents given as security or their assignments.
  • Leases, including oil and gas leases.
  • Transfers of interests assessed as personal property.
  • Transfers for underground gas storage.
  • Transfers by the U.S., state, or local governments.
  • Foreclosure-related transfers by government entities.
  • Transfers to government entities under loan guarantees.
  • Transfers between spouses affecting joint tenancy.
  • Court-ordered transfers without specific monetary value.
  • Boundary line corrections without payment.
  • Title confirmations like quitclaim deeds.
  • Land contracts pending full payment.
  • Transfers of mineral rights.
  • Creating joint tenancy where one owner already exists.

County Transfer Tax Exemptions
Under Michigan Compiled Laws (MCL) 207.505, the following types of documents and property transfers are exempt from county-level real estate transfer tax:

a. Instruments where the consideration (purchase price) is less than $100.00.
b. Instruments involving contracts or transfers not performed entirely within Michigan, as long as they include land located outside the state.
c. Instruments that Michigan is prohibited from taxing under the U.S. Constitution or federal law.
d. Instruments given as security (such as a mortgage), or assignments or discharges of that security.
e. Instruments documenting leases—including oil and gas leases—or the transfer of leasehold interests.
f. Instruments transferring interests that are assessable as personal property.
g. Instruments related to the transfer of rights and interests for underground gas storage.
h. The following instruments involving government entities:
  (i) When the grantor is the United States, the State of Michigan, or a political subdivision or municipality acting in an official capacity.
  (ii) Foreclosure documents (or deeds in lieu of foreclosure) related to loans made, guaranteed, or insured by a government agency.
  (iii) Transfers to the government pursuant to a loan guarantee or insurance agreement.
i. Transfers between spouses (or spouses together) to create or dissolve a tenancy by the entireties.
j. Court-ordered transfers or judgments—unless the court specifies a monetary amount to be transferred.
k. Instruments used to straighten or correct boundary lines where no money changes hands.
l. Deeds confirming a title already held by the grantee, such as corrective or quitclaim deeds.
m. Land contracts where the seller retains legal title until the contract is fully paid.
n. Transfers that involve only mineral rights or mineral interests.
o. Creation of a joint tenancy where one or more parties already own the property.

To read the official law and see the full legal text, visit: MCL 207.505 – Real Estate Transfer Tax Exemptions

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