Sold a Home in Michigan in/after 2011? Get this Refund!

Some Taxpayers are Entitled to a Refund of the State Transfer Tax

Taxpayers who sold their Michigan principal residence on or after June 24, 2011, may be eligible for a rebate of all of the state transfer tax.

In order to qualify for this state transfer tax exemption- and, more importantly, to be eligible to claim a refund – the State Equalized Value (SEV) at the time of the sale of your principal residence had to be equal or less than the SEV at the time it was purchased.

How much can this rebate be? A pretty significant amount. The party who paid the tax- typically, the seller – is entitled to a refund of 0.75% of the sale price of the home.

To get the refund, the Michigan Department of Treasure provides this form to file for a request for refund. There are multiple requirements placed on the property owner to get the refund, including being able to provide:

  • Proof of payment of the transfer tax
  • A copy of the settlement statement/closing statement
  • Proof of purchase and purchase price in the year of purchase
  • Documentation of the SEV in the year of purchase
  • Proof of date of sale and proof of sale price of property
  • Documentation of the SEV in the year of sale.

Have any questions? If so, please contact Tony Perna @ MRPR at 248-415-4407, email ajp@www.mrpr.com, or contact your real estate agent for more details.