Michigan HB5365 creates a new SFR tax and economics act with surtaxes and reporting requirements for large investors.

Michigan HB5365 establishes a new SFR tax and economics act. It imposes a scale-based surtax on large investors owning single-family residential dwellings (SFRs). The surtax rate is 25% of the sum of depreciation and interest expenses claimed on the investor's income tax return. Exemptions apply to mission buyers and SFRs with affordability covenants. The act also imposes a bulk-buyer transfer surtax of 4% on the fair market value of acquired SFRs, with exemptions for mission buyers and certain SFRs. The Department of Treasury administers these surtaxes.

Michigan HB5365 creates a new SFR tax and economics act with surtaxes and reporting requirements for large investors.

Michigan HB5365 establishes a new SFR tax and economics act. It imposes a scale-based surtax on large investors owning single-family residential dwellings (SFRs). The surtax rate is 25% of the sum of depreciation and interest expenses claimed on the investor's income tax return. Exemptions apply to mission buyers and SFRs with affordability covenants. The act also imposes a bulk-buyer transfer surtax of 4% on the fair market value of acquired SFRs, with exemptions for mission buyers and certain SFRs. The Department of Treasury administers these surtaxes.