The Michigan Department of Treasury 2796 form serves as an application for a refund of the State Real Estate Transfer Tax (SRETT). When a seller pays this tax upon the sale of property but later discovers that the sale qualifies for an exemption, they can use this form to request a refund from the Michigan Department of Treasury. It is essential to complete and submit the form within four years and 15 days from the date of the property transfer.
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The Michigan Department of Treasury Form 2796 is a crucial document for sellers seeking a refund of the State Real Estate Transfer Tax (SRETT) after a property sale. This form allows sellers to claim a refund if they later discover that their property transfer qualifies for an exemption under Michigan law. To initiate the refund process, sellers must complete the form accurately and submit it along with supporting documentation, such as a recorded deed and tax statements. The request must be filed within a specific timeframe—four years and 15 days from the sale date. The form includes sections for seller identification, the basis for claiming an exemption, and necessary documentation. Sellers must also certify the accuracy of the information provided under penalty of perjury. Understanding the requirements and proper completion of Form 2796 is essential to ensure a smooth refund process and avoid potential delays.
Michigan Department of Treasury 2796 (Rev. 08-12)
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 L-4258, Real Estate Transfer Tax Valuation Afidavit)
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 517-636-4230. Assistance is available using TTY through the
Michigan Relay Service by calling 1-800-649-3777 or 711. Please allow 4 – 6 weeks for processing.
MAILING INSTRUCTIONS: Mail this application and copies of supporting documentation to:
Michigan Department of Treasury
Technical Services Section
P.O. Box 30698
Lansing, MI 48909-8198
TREASURY USE ONLY
Reviewed by
Treasury Approval Signature
Printed Name
Title
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, step-grandchild, or adopted 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.
Completing the Michigan 2796 form is a straightforward process that requires careful attention to detail. By following these steps, you can ensure that your application for a refund of the State Real Estate Transfer Tax is filled out correctly. Once you submit the form along with the necessary documentation, the Michigan Department of Treasury will review your request. Please allow 4 to 6 weeks for processing.
The Michigan 2796 form is an application for a refund of the State Real Estate Transfer Tax (SRETT) paid when selling property. If a seller believes their sale qualifies for an exemption under specific state laws, they can file this form with the Michigan Department of Treasury to request a refund. This process is governed by Public Act 330 of 1993.
Any seller who has paid the SRETT to a County Treasurer and later determines that their property sale qualifies for an exemption can file this form. It's important to ensure that the request is made within four years and 15 days from the sale date. Eligibility also depends on meeting specific criteria outlined in the exemptions listed on the form.
To support your refund request, you must attach several documents, including:
Once submitted, you can expect the processing of your refund request to take approximately 4 to 6 weeks. This timeframe can vary based on the volume of requests and the completeness of the submitted documentation.
Mail your completed form along with all supporting documentation to the following address:
Michigan Department of Treasury Technical Services Section P.O. Box 30698 Lansing, MI 48909-8198
If your request for a refund is denied, you will receive a notice explaining the reason for the denial. You may have the option to appeal the decision. It's advisable to review the reasons carefully and consult with a legal professional or a tax advisor if you believe the denial was made in error.
While you can claim exemptions, each exemption must be clearly stated and justified on the form. It is crucial to provide the necessary documentation for each exemption claimed. Review the list of exemptions carefully to ensure compliance with the requirements for each one.
If you have questions or need assistance while completing the form, you can contact the Treasury’s Technical Services Section at 517-636-4230. For those using TTY, assistance is available through the Michigan Relay Service at 1-800-649-3777 or 711.
Incomplete Seller Information: Failing to provide the names and Social Security or Federal ID numbers of all sellers can delay the refund process. Ensure every seller's information is included as it appears on the recorded deed.
Incorrect Exemption Claim: Not selecting the correct exemption under PA 330 of 1993 can lead to a denied refund. Review the list of exemptions carefully and ensure you are claiming the appropriate one.
Missing Required Documentation: Forgetting to attach necessary documents, such as the recorded deed or tax statements, is a common oversight. All supporting documents must be included to substantiate your refund request.
Incorrect Dates: Entering the wrong date of transfer can result in rejection of the application. Double-check the transfer date to ensure accuracy.
Failure to Sign: Neglecting to sign the certification section can halt the processing of your application. All sellers must sign and date the form to validate the request.
Late Submission: Submitting the form after the four years and 15 days deadline will lead to automatic denial. Be mindful of the timeline to ensure your application is filed on time.
The Michigan Department of Treasury 2796 form is essential for sellers seeking a refund of the State Real Estate Transfer Tax (SRETT) after determining their sale qualifies for an exemption. Along with this form, several other documents may be needed to support the refund request or provide necessary information related to the property transfer. Here’s a list of commonly used forms and documents that can accompany the Michigan 2796 form.
Gathering these documents can streamline the refund process and ensure that all necessary information is submitted with the Michigan 2796 form. Proper documentation not only supports the refund request but also helps clarify the seller's eligibility for any exemptions claimed.
The Michigan 2796 form is similar to the IRS Form 4506-T, which is used to request a transcript of tax returns. Just as the 2796 form allows sellers to claim a refund for overpaid state real estate transfer taxes, Form 4506-T provides taxpayers a way to obtain documentation necessary for various financial transactions. Both forms require specific identification information and support documentation to validate the request, ensuring that the process is secure and accurate.
Another document that parallels the Michigan 2796 form is the IRS Form 843, used for claiming a refund or credit for certain taxes. Like the 2796, Form 843 allows individuals to request a refund after determining they overpaid taxes. Both forms necessitate the submission of supporting documents to substantiate the claim. This ensures that the tax authorities can verify the refund request before processing it.
The Michigan 1040 form, which is the state income tax return, shares similarities with the 2796 form in that both require detailed personal information and documentation. The 1040 form allows residents to report their income and claim deductions or credits, while the 2796 is specifically for tax refunds related to real estate transactions. Each form serves a distinct purpose but emphasizes the importance of accuracy and thorough documentation.
The Property Transfer Affidavit is another document akin to the Michigan 2796 form. This affidavit is filed with the local assessor’s office when property changes hands, similar to how the 2796 form is filed for tax refunds after a property transfer. Both documents play a crucial role in ensuring proper record-keeping and tax assessment, providing necessary details about the transaction.
In the realm of real estate, the Quit Claim Deed is also comparable to the Michigan 2796 form. This document is used to transfer ownership of property without guaranteeing the title, much like how the 2796 form addresses tax refunds after a property transfer. While the Quit Claim Deed focuses on the transfer itself, both documents require accurate information to facilitate the process and protect the rights of all parties involved.
The Michigan Homestead Property Tax Credit Claim form is another document that bears resemblance to the Michigan 2796 form. This credit claim allows homeowners to receive tax relief based on their property taxes and income. Both forms involve the submission of specific information and supporting documentation to ensure eligibility for the benefits being claimed. Each form aims to provide financial relief to taxpayers in different contexts.
Finally, the Michigan Claim for Refund of Property Taxes form is similar to the Michigan 2796 form in that both are used to request refunds related to property taxes. The Claim for Refund is specifically for property tax overpayments, while the 2796 focuses on refunds for the state real estate transfer tax. Each form requires the claimant to provide evidence supporting their request, reinforcing the importance of documentation in the refund process.
When filling out the Michigan 2796 form, it is crucial to follow specific guidelines to ensure a smooth application process. Below are important dos and don'ts to keep in mind.
By adhering to these guidelines, you can help ensure that your refund request is processed efficiently and correctly.
Understanding the Michigan 2796 form can be tricky, and there are several misconceptions that often arise. Here are eight common misunderstandings, along with clarifications to help clear things up.
This is not true. The Michigan 2796 form can be used for any property transaction that qualifies for a refund, regardless of the sale price.
In reality, you must file the form within four years and 15 days from the date of the sale. Missing this deadline means you cannot receive a refund.
Actually, you must attach appropriate documentation to support your claim. This includes a copy of the recorded deed and proof of the exemption being claimed.
While it is typically the seller who files, any seller listed on the recorded deed can submit the form. All sellers must sign the application.
This is misleading. You must meet specific criteria to qualify for an exemption, including the property qualifying for a 100% Principal Residence Exemption.
It can take 4 to 6 weeks for processing after submitting your application. Patience is necessary during this time.
This is incorrect. Each exemption has specific requirements that must be documented. You must provide proof that aligns with the exemption you are claiming.
This is a common misunderstanding. The Michigan 2796 form applies to all types of real estate transactions, not just residential sales.
Filling out the Michigan 2796 form can seem daunting, but understanding its key components can simplify the process. Here are some important takeaways to keep in mind: