When selling your principal residence (your home), you pay a sales tax – yes, a sales tax. It is commonly known as a Transfer Tax.
- It is $8.60 per $1000 State Equalized Value (SEV].
- $7.50 goes to the State of Michigan [this can be waived if you meet the requirements].
- $1.10 goes to the County [this can be waived if you meet the requirements]
Answer this series of questions to see how it can work for YOU . . .
QUESTION 1: Is the property currently claimed as a Homestead?
If "yes," continue. If "No," STOP. You cannot claim the exemption.
QUESTION 2: What is the current SEV?
QUESTION 3: Is the saleprice less than or equal to the "true cash value" of the property.
For help with this, contact a Realtor or our local assessor.
QUESTION 4: What was the SEV on the date of purchase?
For help with this, contact a Realtor or your local assessor.
If the answer to QUESTION 4 is more than the amount for QUESTION 2, you CAN claim the exemption!