Backlog of Applications for State Real Estate Transfer Tax (SRETT) Refund
Due to the recent volume of applications for Michigan’s State Real Estate Transfer Tax (SRETT) Refunds, there is currently a 12 to 16 week delay in the processing of the applications by the Michigan Department of Treasury. Nevertheless, the backlog of applications should not deter a homeowner who paid a state transfer tax at time of sale from submitting an application for a refund. The requirements are relatively simple and can result in a substantial refund.
Sellers of homes who meet the following three (3) requirements are exempt from paying the state transfer tax and are entitled to a State Real Estate Transfer Tax (SRETT) Refund if they sold their property within the last 4 years.
The requirements are:
- Seller occupied the property as a principle residence at the time the property was sold.
- The property’s State Equalized Value (SEV) at the time the property was sold was equal to or lesser than the SEV on the date the property was purchased.
- The sale price was the result of “arms length” negotiations (each party bargaining for their own self-interest) between the seller and buyer
If you meet these requirements, you can obtain a refund of the state transfer tax you paid when you sold your home and you can do it yourself!
Simply fill out the refund application at the following link:
and submit it to the Michigan Department of Treasury. Do not forget to include the required documentation that is listed on the application.
If you would like me to fill out the form, obtain the required documentation and submit the form, I will do it for a reasonable flat fee.