[Michigan_LT] transfer tax on CEs

[Jeff Knoop]

Under MI law, you have to pay the transfer tax on the purchase price of
conservation easements and there is no exemption for a 501c3. There is no
way you can "hide" this value since that information is provided to the
Register of Deeds, no different as if you were acquiring the property in
fee. Easement gifts are obviously transfer tax free.

J Knoop
  -----Original Message-----
  From: michigan_list-bounces at lists.ltanet.org
[mailto:michigan_list-bounces at lists.ltanet.org]On Behalf Of Jean Brokish
  Sent: Wednesday, December 13, 2006 12:19 PM
  To: michigan_list at lists.ltanet.org
  Subject: [Michigan_LT] transfer tax on CEs


  Hello Good People of Michigan's Land Trusts,

  We recently closed on a conservation easement that we purchased using 319
money.  The easement document identifies the purchase price.  The title
company has since reported to me that the Register of Deeds is requiring us
to pay the transfer tax for the purchase price (which we didn't do at
closing time).

  My questions: Does our 501c3 allow an exemption on this tax?  Should I be
putting the purchase price on the easement document?  How do other land
trusts handle transfer taxes?

  All advice will be most appreciated!

  Thank you,

  Jean





  ~~~~~~~~~~~~~~~~~~

  Jean Brokish

  Chikaming Open Lands

  PO Box 291 / 14913 Lakeside Rd

  Lakeside, MI  49116



  p: 269-469-2330  f: 269-469-2471




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