H.B. 5358 (H-1): COMMITTEE SUMMARY - TRANSFER TAX: RELIGION EXEMPTION

House Bill 5358 (Substitute H-1 as passed by the House)

Sponsor: Representative Kirk A. Profit

House Committee: Tax Policy

Senate Committee: Finance

Date Completed: 3-24-98

CONTENT

The bill would amend the State Real Estate Transfer Tax Act to exempt from the real estate transfer tax the conveyance of an interest from a religious society in a house of public worship exempt from property taxation under Section 7s of the General Property Tax Act, or a parsonage. (Section 7s of the General Property Tax Act exempts from property taxes houses of public worship, the furniture in them, and the land on which they stand; any parsonage owned and occupied as a parsonage by a religious society of the State; and buildings or other facilities owned by a religious society and used predominantly for religious services or for teaching the society's religious truths and beliefs.)

The State Real Estate Transfer Tax Act taxes the seller or grantor of property at the rate of three-fourths of 1% of the total value of the property transferred. The Act contains a list of property transfers that are exempt from the tax.

MCL 207.526 - Legislative Analyst: G. Towne

FISCAL IMPACT

This bill would reduce the revenue generated by the State real estate transfer tax by less than $1 million in FY 1998-99. The revenue from the State real estate transfer tax is earmarked to the School Aid Fund, so this loss in revenue would have an impact on the School Aid Fund.

- Fiscal Analyst: J. WortleyS9798\S5358SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.