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Instructions:
This form must be led when there is a transfer of real property or one of the following types of personal property:
• Buildings on leased land.
• Leasehold improvements, as dened in MCL Section 211.8(h).
• Leasehold estates, as dened in MCL Section 211.8(i) and (j).
Transfer of ownership means the conveyance of title to or a present interest in property, including the benecial use of the
property. For complete descriptions of qualifying transfers, please refer to MCL Section 211.27a(6)(a-j).
Excerpts from Michigan Compiled Laws (MCL), Chapter 211
**Section 211.27a(7)(d): Beginning December 31, 2014, a transfer of that portion of residential real property that had been
subject to a life estate or life lease retained by the transferor resulting from expiration or termination of that life estate or life
lease, if the transferee is the transferor’s or transferor’s spouse’s mother, father, brother, sister, son, daughter, adopted son,
adopted daughter, grandson, or granddaughter and the residential real property is not used for any commercial purpose
following the transfer. Upon request by the department of treasury or the assessor, the transferee shall furnish proof within
30 days that the transferee meets the requirements of this subdivision. If a transferee fails to comply with a request by the
department of treasury or assessor under this subdivision, that transferee is subject to a ne of $200.00.
*Section 211.27a(7)(u): Beginning December 31, 2014, a transfer of residential real property if the transferee is the
transferor’s or the transferor’s spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter,
grandson, or granddaughter and the residential real property is not used for any commercial purpose following the
conveyance. Upon request by the department of treasury or the assessor, the transferee shall furnish proof within 30
days that the transferee meets the requirements of this subparagraph. If a transferee fails to comply with a request by the
department of treasury or assessor under this subparagraph, that transferee is subject to a ne of $200.00.
Section 211.27a(10): “... the buyer, grantee, or other transferee of the property shall notify the appropriate assessing ofce
in the local unit of government in which the property is located of the transfer of ownership of the property within 45 days of
the transfer of ownership, on a form prescribed by the state tax commission that states the parties to the transfer, the date
of the transfer, the actual consideration for the transfer, and the property’s parcel identication number or legal description.”
Section 211.27(5): “Except as otherwise provided in subsection (6), the purchase price paid in a transfer of property
is not the presumptive true cash value of the property transferred. In determining the true cash value of transferred
property, an assessing ofcer shall assess that property using the same valuation method used to value all other
property of that same classication in the assessing jurisdiction.”
Penalties:
Section 211.27b(1): “If the buyer, grantee, or other transferee in the immediately preceding transfer of ownership of
property does not notify the appropriate assessing ofce as required by section 27a(10), the property’s taxable value shall
be adjusted under section 27a(3) and all of the following shall be levied:
(a) Any additional taxes that would have been levied if the transfer of ownership had been recorded as required under this
act from the date of transfer.
(b) Interest and penalty from the date the tax would have been originally levied.
(c) For property classied under section 34c as either industrial real property or commercial real property, a penalty in the
following amount:
(i) Except as otherwise provided in subparagraph (ii), if the sale price of the property transferred is $100,000,000.00 or
less, $20.00 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum of $1,000.00.
(ii) If the sale price of the property transferred is more than $100,000,000.00, $20,000.00 after the 45 days have elapsed.
(d) For real property other than real property classied under section 34c as industrial real property or commercial real
property, a penalty of $5.00 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum
of $200.00.