A bill to amend 2018 PA 57, entitled “Recodified tax increment financing act,” by amending section 228a (MCL 125.4228a).
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
