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No Private Transfer Fees Allowed!

 

With the passage of these bills, the legislature successfully stopped third-party fees before they began here in Michigan. The MAR thanks those in the House and Senate who supported this much-need legislation and realized how detrimental these fees would be to private property rights in this state. Our sincere gratitude goes out to Representatives Opsommer and Rendon for bringing this issue before the legislature

 

Healthcare Bill and the Real Estate Sales Tax Explained
 
Recently the Michigan Association of REALTORS® has received numerous e-mails concerning a provision in the health care bill that requires a 3.8% sales tax or transfer tax on the sale of a home. We understand your concerns regarding this provision in the health care bill and would like to clarify this issue.

The health care bill does include a provision which imposes a 3.8% tax on the net investment income. The tax applies only to those with Adjusted Gross Incomes (GSI) of over $200,000 a year or $250,000 for marred couples filing jointly. Even if the income is met, the tax does not apply to the first $250,000 on gains from the sale of a principal residence or to the first $500,000 in the case of a married couple selling their home. Therefore, if the gain of the sale of the primary residence is below that amount, no tax will have to be paid. Similarly, the tax is only applied to the lesser of the gain or the amount above the AGI thresholds.

Some home sales would see a tax increase under this bill; however, it would have to be a principal residence that generates a gain of more than $250,000 or $500,000 for a couple, or a 2nd home/investment property. A typical home sale would not incur the tax. In a report released by the Tax Foundation, it stated that the tax will hit only the top-earning two percent of families. Therefore, for the vast majority, the 3.8% tax will not apply.
 
If you have additional questions about this issue, please visit the National Association of REALTORS® website
 
Click here for information from NAR that further explains the tax, along with a video by a NAR tax expert. This would go into effect in 2013.
 
 

Property Tax Assessments:

It’s that time of year again – homeowners have started to receive their 2011 property tax assessments in the mail. Homeowners have the right to appeal their assessments to the local board of review if they feel the assessment is incorrect. It is important to note that many review boards meet in March, but dates vary by each municipality, so be sure to contact your local assessor. Below is a step-by-step guide for homeowners to utilize when preparing to appeal their property tax assessment, courtesy of the Michigan House of Representatives Caucus Services.

Before deciding to appeal, you may find it helpful to call your local assessor to discuss your assessment and the appeal process.

Download the guide here.

December Housing Sales in Michigan

Housing sales in Michigan ended the year on a positive note!  Check out the full story here.

 

Granholm Veto's SB77

On December 22, 2010, Governor Granholm vetoed MAR-supported legislation aimed at getting the housing market moving. Senate bill 77, which passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years. The bill was seen as a stepping stone in getting foreclosed properties, which are non-principaled residences, moving. Currently, a buyer may be priced out of purchasing a foreclosed property because they do not qualify for a mortgage at the higher tax rate. The bill alleviated that burden by allowing the homebuyer to immediately make a foreclosed property their principal residence....read more.

 

Difficulty Making Your Mortgage Payment?

If you have a mortgage on your home and are having difficulty making your payment, MSHDA has many resources to help you!  There are local counselors who will meet with you for free and other resource programs.  Take a moment today to browse the MSHDA website and read the "Save the Dream" brochure located on the Foreclosure Prevention & Response pages of mirealtors.com .  There is help out there....take advantage of it!


 MSHDA's Property Improvement Program!

Have you heard about MSHDA's Property Improvement Program?  This program offers low interest home improvement loans to single family homeowners with low to moderate income.  Eligible home improvements include repairing or replacing a roof, installing new siding, adding insulation, replacing a furnace, installing a ramp, remodeling a kitchen, and other similar improvements.  Homeowners can borrow up to $50,000.  MSDHA does not require equity in the home for loans $25,000 and under, making it the ideal product for a new homeowner or existing homeowner with limited equity.  The loan can be ammoritized for up to 20 years making the monthly payments very affordable.  The interest rate for homeowners is 4%, 6% or 8% depending on income.
Today, MAR-supported legislation on two big industry issues successfully passed through the legislature, and will soon be signed into law by the Governor. First, the Senate voted unanimously to support the prohibition of Private Transfer Fees (PTF’s) before they become cumbersome to the transfer of property in our state.  House Bills 4227 and 4228, sponsored by Representative Paul Opsommer (R-DeWitt) and Representative Bruce Rendon (R-Lake City) are a pre-emptive strike on practices that have sprung up in other states that have allowed a private party to collect a fee every time a property is sold in a development, similar to a transfer tax. These fees are an excessive restraint on the transferability of property and also prey upon homebuyers. This legislation is now on its way to Governor Snyder’s desk for his signature into law.