If you are selling your home in Michigan and moving again in Michigan you may be able to save money on your Transfer State Tax.
In Michigan when you sell a home you pay a State Transfer and a County Transfer Tax.
*****If your home is selling for less than you bought it for and your SEV is lower than when you purchase you may qualify****
It is called Exemption T in the State Code. I posted on this in April 08 but wanted to remind you of it again.
- The property must have been occupied as a principle residence, classified as homestead property;
- The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
- The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer.
- This does not apply to the county transfer tax.
If you think you may be able to save on this by moving again in Michigan, then speak to your Realtor, Title Company or Attorney in advance of the closing to see if you qualify. The biggest portion of the Michigan Transfer Tax is the state portion so make sure you check on this.
IF you have already sold, you may be eligible for a refund, call the Consumer Contact Division in Lansing for a refund at 517-636-4700.
It is called a SRETT form. ( or email me, I can send it to you.)