Article Guide
The Michigan Department of Treasury Form 2796 serves as a crucial document for sellers seeking a refund of the State Real Estate Transfer Tax (SRETT) paid during the sale of property. This form is issued under the authority of Public Act 330 of 1993 and allows sellers to reclaim the tax if they later determine that their property sale qualifies for an exemption. To initiate the refund process, sellers must complete the form and submit it along with necessary supporting documentation, such as a copy of the recorded deed and tax statements. The application must be filed within four years and 15 days from the date of the property transfer. The form is divided into several parts, including sections for identification of all sellers, the basis for claiming the exemption, recorded deed details, and required documentation. Sellers are also required to certify the accuracy of the information provided. Understanding the nuances of this form, including the specific exemptions available under Michigan law, is essential for ensuring a successful refund application.
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Michigan Department of Treasury 2796 (Rev.
Application for State Real Estate Transfer Tax (SRETT) Refund
Issued under authority of Public Act 330 of 1993.
When a Seller of property pays the SRETT to a County Treasurer, and later determines that the sale (transfer) of the property qualiies
for exemption under MCL 207.526 (see Page 2), the Seller(s) may request a refund of the SRETT paid to a County Treasurer from the
Michigan Department of Treasury by iling this form and submitting documentary evidence to support the refund request. This form must be iled within four years and 15 days from the date of sale or transfer of the property.
Type or print in blue or black ink.
PART 1: IDENTIFICATION
Name(s) of ALL Seller(s) - (refund check will be made payable to ALL seller(s) as listed on the recorded deed)
Social Security or Federal ID Number(s) of ALL Seller(s)
Address where refund check is to be mailed
City and State
ZIP Code
Telephone Number
PART 2: BASIS FOR EXEMPTION: (see Page 2 for list of exemptions)
State Exemption Being Claimed Under PA 330 of 1993, as Amended
Amount of SRETT Refund Requested
PART 3: RECORDED DEED
Date of Transfer of Property (MM/DD/YYYY)
Tax Parcel/Sidwell ID Number
Taxing Entity (City, Township, Village)
PART 4: REQUIRED DOCUMENTATION
Attach a copy of the recorded deed, copies of tax statements or other appropriate documentation to support your refund request.
Please note that to qualify for a refund of the SRETT under “u”, (1) the SEV of the property in the year of sale must be equal to or less than the SEV in the year of purchase; (2) the property must qualify for 100% Principal Residence Exemption and, (3) the sales price of
the property cannot exceed the true cash value of the property in the year of sale. (For additional information, please refer to Attorney
General Opinion No. 7214, available at www.michigan.gov/ag). If claiming exemption under “u”, please submit ALL of the following:
1.Proof of date of purchase/SEV in year of purchase
2.Proof of date of sale/SEV in year of sale
3.Proof that property qualiied for the Principal Residence Exemption
4.Proof of SRETT paid to Register of Deeds (copy of recorded deed containing Real Estate Transfer Tax stamp, oficial receipt from county treasurer, or form
5.Proof of sales price of property
PART 5: SELLER’S CERTIFICATION
I declare under penalty of perjury that the information on this form and attachments is true and complete to the best of my knowledge.
Signature(s) of ALL Seller(s)
Date
Questions may be directed to Treasury’s Technical Services Section at
Michigan Relay Service by calling
MAILING INSTRUCTIONS: Mail this application and copies of supporting documentation to:
Michigan Department of Treasury
Technical Services Section
P.O. Box 30698
Lansing, MI
TREASURY USE ONLY
Reviewed by
Treasury Approval Signature
Printed Name
Title
Date
Amount Approved for Refund
2796, Page 2 |
Exemptions to State Real Estate Transfer Tax (SRETT) |
|
Under Section 6 of PA 330 of 1993, as amended, you may claim an exemption from the SRETT for one of the reasons listed below. Enter the section number for the exemption you are claiming in Part 2 of form 2796.
(a)A written instrument in which the value of the consideration for the property is less than $100.00.
(b)A written instrument evidencing a contract or transfer that is not to be performed wholly within this state only to the extent the written instrument includes land lying outside of this state.
(c)A written instrument that this state is prohibited from taxing under the United States constitution or federal statutes.
(d)A written instrument given as security or an assignment or discharge of the security interest.
(e)A written instrument evidencing a lease, including an oil and gas lease, or a transfer of a leasehold interest.
(f)A written instrument evidencing an interest that is assessable as personal property.
(g)A written instrument evidencing the transfer of a right and interest for underground gas storage purposes.
(h)Any of the following written instruments:
(i)A written instrument in which the grantor is the United States, this state, a political subdivision or municipality of this state, or an oficer of the United States or of this state, or a political subdivision or municipality of this state, acting in his or her oficial capacity.
(ii)A written instrument given in foreclosure or in lieu of foreclosure of a loan made, guaranteed, or insured by the United States, this state, a political subdivision or municipality of this state, or an oficer of the United States or of this state, or a political subdivision or municipality of this state, acting in his or her oficial capacity.
(iii)A written instrument given to the United States, this state, or 1 of their oficers acting in an oficial capacity as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the grantee.
(i)A conveyance from a husband or wife or husband and wife creating or disjoining a tenancy by the entireties in the grantors or the grantor and his or her spouse.
(j)A conveyance from an individual to that individual’s child, stepchild, or adopted child.
(k)A conveyance from an individual to that individual’s grandchild,
(l)A judgment or order of a court of record making or ordering a transfer, unless a speciic monetary consideration is speciied or ordered by the court for the transfer.
(m)A written instrument used to straighten boundary lines if no monetary consideration is given.
(n)A written instrument to conirm title already vested in a grantee, including a quitclaim deed to correct a law in title.
(o)A land contract in which the legal title does not pass to the grantee until the total consideration speciied in the contract has been paid.
(p)A conveyance that meets 1 of the following:
(i)A transfer between any corporation and its stockholders or creditors, between any limited liability company and its members or creditors, between any partnership and its partners or creditors, or between a trust and its beneiciaries or creditors when the transfer
is to effectuate a dissolution of the corporation, limited liability company, partnership, or trust and it is necessary to transfer the title of real property from the entity to the stockholders, members, partners, beneiciaries, or creditors.
(ii)A transfer between any limited liability company and its members if the ownership interests in the limited liability company are held by the same persons and in the same proportion as in the limited liability company prior to the transfer.
(iii)A transfer between any partnership and its partners if the ownership interests in the partnership are held by the same persons and in the same proportion as in the partnership prior to the transfer.
(iv)A transfer of a controlling interest in an entity with an interest in real property if the transfer of the real property would qualify for exemption if the transfer had been accomplished by deed to the real property between the persons that were parties to the transfer of the controlling interest.
(v)A transfer in connection with the reorganization of an entity and the beneicial ownership is not changed.
(q)A written instrument evidencing the transfer of mineral rights and interests.
(r)A written instrument creating a joint tenancy between 2 or more persons if at least 1 of the persons already owns the property.
(s)A transfer made pursuant to a bona ide sales agreement made before the date the tax is imposed under sections 3 and 4, if the sales agreement cannot be withdrawn or altered, or contains a ixed price not subject to change or modiication.
(t)A written instrument evidencing a contract or transfer of property to a person suficiently related to the transferor to be considered a single employer with the transferor under section 414(b) or (c) of the internal revenue code of 1986, 26 USC 414.
(u)A written instrument conveying an interest in property for which an exemption is claimed under section 7cc of the general property tax act,
1893 PA 206, MCL 211.7cc, if the state equalized valuation of that property is equal to or lesser than the state equalized valuation on the date of purchase or on the date of acquisition by the seller or transferor for that same interest in property. If after an exemption is claimed under this subsection, the sale or transfer of property is found by the treasurer to be at a value other than the true cash value, then a penalty equal to
20% of the tax shall be assessed in addition to the tax due under this act to the seller or transferor.
(v)A written instrument transferring an interest in property pursuant to a foreclosure of a mortgage including a written instrument given in lieu of foreclosure of a mortgage. This exemption does not apply to a subsequent transfer of the foreclosed property by the entity that foreclosed on the mortgage.
(w)A written instrument conveying an interest from a religious society in property exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s, to a religious society if that property continues to be exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s.
Form Specifications
| Fact Name | Details |
|---|---|
| Purpose | The Michigan 2796 form is used to apply for a refund of the State Real Estate Transfer Tax (SRETT) when a property transfer qualifies for exemption under specific criteria. |
| Governing Law | This form is issued under the authority of Public Act 330 of 1993, which governs the conditions and procedures for claiming exemptions and refunds related to the SRETT. |
| Filing Deadline | Applicants must file the Michigan 2796 form within four years and 15 days from the date of the property sale or transfer to be eligible for a refund. |
| Required Documentation | To support the refund request, applicants must attach a copy of the recorded deed and other relevant documentation, including tax statements and proof of exemptions claimed. |
Michigan 2796: Usage Guidelines
To initiate the process of obtaining a refund for the State Real Estate Transfer Tax (SRETT) in Michigan, you will need to complete the Michigan 2796 form. Ensure that you have all necessary documentation ready to support your request. Follow these steps to accurately fill out the form.
- Part 1: Identification
- Enter the name(s) of all seller(s). The refund check will be issued to all sellers as listed on the recorded deed.
- Provide the Social Security or Federal ID number(s) for all seller(s).
- Fill in the address where the refund check should be mailed.
- Include the city, state, and ZIP code.
- Enter a telephone number for contact purposes.
- Part 2: Basis for Exemption
- Indicate the state exemption being claimed under PA 330 of 1993, as amended.
- Specify the amount of SRETT refund requested.
- Part 3: Recorded Deed
- Provide the date of transfer of the property in MM/DD/YYYY format.
- Enter the tax parcel or Sidwell ID number.
- Identify the taxing entity (City, Township, or Village).
- Part 4: Required Documentation
- Attach a copy of the recorded deed.
- Include copies of tax statements or other appropriate documentation supporting your refund request.
- If claiming exemption under “u”, ensure to submit all required proofs as listed in the form.
- Part 5: Seller’s Certification
- Sign and date the form to certify that all information provided is true and complete.
Once you have completed the form and gathered all necessary documentation, mail your application to the Michigan Department of Treasury. Allow 4 to 6 weeks for processing. If you have any questions, assistance is available through the Treasury’s Technical Services Section.
Your Questions, Answered
What is the Michigan 2796 form used for?
The Michigan 2796 form is an application for a refund of the State Real Estate Transfer Tax (SRETT). This tax is paid by the seller when transferring property. If the seller later finds that the transfer qualifies for an exemption, they can use this form to request a refund from the Michigan Department of Treasury.
Who can file the Michigan 2796 form?
Any seller of real property who has paid the SRETT can file this form. However, it is essential that all sellers listed on the recorded deed sign the application, as the refund check will be issued to all sellers collectively.
What is the deadline for filing the Michigan 2796 form?
The form must be filed within four years and 15 days from the date of the sale or transfer of the property. It is crucial to adhere to this timeline to ensure eligibility for a refund.
What documentation is required to support the refund request?
To support a refund request, you must attach several documents, including a copy of the recorded deed, tax statements, and other relevant documentation. If claiming exemption under a specific category, additional proof may be required, such as evidence of the property's assessed value and proof of the sales price.
What exemptions qualify for a refund under the Michigan 2796 form?
Exemptions are listed on Page 2 of the form and include various circumstances, such as transfers with no monetary consideration, transfers between family members, or certain governmental transactions. It is important to review these exemptions carefully to determine eligibility.
How long does it take to process the Michigan 2796 form?
After submitting the form and supporting documents, please allow 4 to 6 weeks for processing. The Michigan Department of Treasury will review the application and determine if the refund can be approved.
Where should the completed Michigan 2796 form be mailed?
The completed form and all supporting documentation should be mailed to the Michigan Department of Treasury, Technical Services Section, at P.O. Box 30698, Lansing, MI 48909-8198. Make sure to send everything in one envelope to avoid delays.
What should I do if I have questions about the Michigan 2796 form?
If you have questions or need assistance with the form, you can contact the Treasury’s Technical Services Section at 517-636-4230. For those who require TTY assistance, the Michigan Relay Service can be reached at 1-800-649-3777 or 711.
Common mistakes
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Failing to include the names of all sellers. The refund check will be issued to all sellers listed on the recorded deed.
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Omitting the Social Security or Federal ID numbers for all sellers. This information is essential for processing the refund.
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Providing an incorrect or incomplete mailing address. Ensure that the address is accurate to avoid delays in receiving the refund check.
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Not specifying the basis for exemption in Part 2. It is crucial to select the correct exemption under PA 330 of 1993.
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Neglecting to include the amount of SRETT refund requested. This figure must be clearly stated to facilitate processing.
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Missing the date of transfer of property. This date is critical for determining eligibility for the refund.
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Failing to attach the required documentation. All supporting documents must be included to substantiate the refund request.
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Not signing the form. All sellers must provide their signature(s) to certify the accuracy of the information.
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Submitting the form after the four-year and 15-day deadline. Timeliness is essential for a valid refund request.
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Ignoring the specific instructions for mailing the application. Follow the provided mailing instructions to ensure proper handling by the Michigan Department of Treasury.
Documents used along the form
The Michigan Department of Treasury 2796 form is essential for individuals seeking a refund of the State Real Estate Transfer Tax (SRETT) after a property sale. However, several other forms and documents often accompany this application to ensure a smooth and successful refund process. Below is a list of these important documents, each serving a unique purpose.
- Recorded Deed: This document serves as proof of the property transfer and contains essential details such as the names of the parties involved, the date of transfer, and the legal description of the property. It is a crucial piece of evidence when claiming a refund.
- Tax Statements: Copies of tax statements related to the property can help demonstrate the property's tax history and support the claim for a refund by showing the amount of SRETT paid.
- Principal Residence Exemption Documentation: This includes forms or statements proving that the property qualified for the Principal Residence Exemption. Such proof is necessary when claiming certain exemptions under the SRETT regulations.
- Real Estate Transfer Tax Valuation Affidavit (Form L-4258): This form provides information about the property’s value and the transfer tax paid. It can be used to substantiate the refund request, especially when the property was sold for less than its assessed value.
- Proof of Sales Price: Documentation showing the sales price of the property is necessary to establish the amount of SRETT paid. This could include a copy of the purchase agreement or closing statement.
- Proof of SEV (State Equalized Value): This documentation includes evidence of the SEV for both the year of purchase and the year of sale. It is vital for claims based on the exemption criteria related to property value.
- Judgment or Court Order: If the property transfer is a result of a court decision, a copy of the judgment or order will be necessary to validate the transfer and support the refund request.
Each of these documents plays a significant role in the refund application process for the SRETT in Michigan. By gathering and submitting the appropriate supporting materials, sellers can enhance their chances of receiving a timely refund. Understanding the requirements and preparing the necessary documentation is crucial for a successful claim.
Similar forms
The Michigan Department of Treasury 2796 form is primarily used for requesting a refund of the State Real Estate Transfer Tax (SRETT) when a property sale qualifies for an exemption. There are several other documents that serve similar purposes in different contexts. Here are four such documents:
- IRS Form 4506-T: This form allows individuals to request a transcript of their tax returns from the IRS. Like the Michigan 2796 form, it requires specific identification information and is used to support claims—here, for tax-related inquiries rather than property tax refunds.
- Michigan Property Transfer Affidavit (Form L-4260): This document is used to report the transfer of property ownership to local assessors. Similar to the Michigan 2796, it includes information about the property, the sellers, and the nature of the transfer, ensuring that the local government is aware of changes in property ownership for tax assessment purposes.
- Michigan Homestead Exemption Application (Form 5047): This form is filed to claim a homestead exemption on property taxes. Like the 2796 form, it requires personal identification and details about the property. Both forms aim to provide tax relief based on specific eligibility criteria.
- Michigan Real Estate Transfer Tax Valuation Affidavit (Form L-4258): This document is used to report the value of property being transferred. It serves a similar function to the Michigan 2796 form by documenting the transaction and supporting any tax exemptions or refunds associated with the transfer.
Dos and Don'ts
When filling out the Michigan 2796 form, it is essential to approach the process with care. Here are some important do's and don'ts to keep in mind:
- Do ensure all seller names are listed accurately as they appear on the recorded deed.
- Do provide the correct Social Security or Federal ID numbers for all sellers.
- Do attach all required documentation to support your refund request.
- Do mail the completed form and documents to the correct address.
- Don't submit the form after the four years and 15 days deadline from the date of sale.
- Don't leave any sections of the form blank; complete all required fields.
- Don't use any ink color other than blue or black when filling out the form.
- Don't forget to sign the form; all sellers must provide their signatures.
Taking these steps can help ensure a smoother process when applying for your refund.
Misconceptions
Here are nine common misconceptions about the Michigan 2796 form:
- It is only for residential properties. The Michigan 2796 form can be used for any type of property, not just residential. This includes commercial and industrial properties.
- You can file the form anytime. The form must be filed within four years and 15 days from the date of sale or transfer. Missing this deadline means losing the right to a refund.
- Only the seller can request a refund. While the seller typically files the form, anyone listed on the deed can request a refund, as the check will be made payable to all sellers.
- You don’t need supporting documents. It is essential to attach required documentation, such as a copy of the recorded deed and proof of tax statements, to support your refund request.
- All property sales qualify for a refund. Not all sales are eligible for a refund. The property must meet specific exemption criteria outlined in the form.
- Filing the form guarantees a refund. Submitting the form does not guarantee a refund. The Michigan Department of Treasury will review the request and determine eligibility.
- Refunds are processed immediately. Processing can take 4 to 6 weeks, so it is important to plan accordingly.
- Only one exemption can be claimed. Multiple exemptions may apply, but each must be properly documented and indicated on the form.
- Handwritten forms are acceptable. The form must be typed or printed in blue or black ink to ensure clarity and proper processing.
Key takeaways
The Michigan 2796 form is essential for sellers seeking a refund of the State Real Estate Transfer Tax (SRETT) after a property sale. Here are some key takeaways regarding its use:
- Eligibility for Refund: Sellers can request a refund if they determine that their sale qualifies for an exemption under MCL 207.526.
- Filing Deadline: The form must be submitted within four years and 15 days from the date of the property transfer.
- Accurate Information: All sellers must provide their names, Social Security or Federal ID numbers, and the address where the refund check will be mailed.
- Exemption Basis: Sellers must specify the exemption being claimed in Part 2 of the form, referring to the list of exemptions provided.
- Documentation Requirements: Supporting documents, including a copy of the recorded deed and proof of SRETT paid, must accompany the application.
- Principal Residence Exemption: To qualify for certain exemptions, the property must have a 100% Principal Residence Exemption and meet specific SEV criteria.
- Certification: All sellers must sign the form, certifying that the information provided is true and complete under penalty of perjury.
- Processing Time: Allow 4 to 6 weeks for the processing of the refund request after submission.
For any questions or assistance, sellers can contact the Treasury’s Technical Services Section or use TTY services for hearing assistance.