A bill to amend 1941 PA 122, entitled “An act to establish the revenue collection duties of the department of treasury; to prescribe its powers and duties as the revenue collection agency of this state; to prescribe certain powers and duties of the state treasurer; to establish the collection duties of certain other state departments for money or accounts owed to this state; to regulate the importation, stamping, and disposition of certain tobacco products; to provide for the transfer of powers and duties now vested in certain other state boards, commissions, departments, and offices; to prescribe certain duties of and require certain reports from the department of treasury; to provide procedures for the payment, administration, audit, assessment, levy of interests or penalties on, and appeals of taxes and tax liability; to prescribe its powers and duties if an agreement to act as agent for a city to administer, collect, and enforce the city income tax act on behalf of a city is entered into with any city; to provide an appropriation; to abolish the state board of tax administration; to prescribe penalties and provide remedies; and to declare the effect of this act,” by amending section 21 (MCL 205.21), as amended by 2017 PA 215.
In 1993, the Michigan Legislature adopted a law that whenever real estate in Michigan valued at $100 or more is transferred, the state assesses a transfer tax of $3.75 for each $500.00 or fraction thereof. House Bill 5811 is the linchpin of a four-bill package that would repeal the Michigan real estate transfer tax. House Bills 5812-5814 revise other statutes to reflect the elimination of the tax. Counties would still be allowed to assess their own transfer tax, which is capped at $0.55 per $500 or fraction thereof.
The bill also outlines the legislature's intent to annually allocate sufficient funds from the state general fund to the state school aid fund to compensate for any revenue losses resulting from the tax's repeal. This action is to ensure that the state school aid fund remains unaffected financially by the repeal of the tax.
Co-sponsored by Reps.
Referred to the Committee on Tax Policy
