State loses appeal over tax break in certain home sales

The Michigan Supreme Court has ruled in favor of home sellers in a tax dispute involving property in a market that’s down or slowly recovering.

In a unanimous decision, the court says some sellers are exempt from a real estate transfer tax. The tax break applies if a home’s state equalized value is the same or less than the value when the home was acquired years earlier.

The Supreme Court didn’t need to hear arguments before issuing a 7-0 opinion Thursday and overturning an appeals court ruling. The appeals court last year had a different interpretation of state law.

The real estate transfer tax can add up. It’s $3.75 for every $500 in a sale.  (AP)