DATE: September 19, 1997
TO:Equalization Directors; Assessors
FROM: State Tax Commission (STC)

RE: CHANGES TO THE PROPERTY TRANSFER AFFIDAVIT (STC FORM L-4260) INCLUDING THE ADDITION OF STC FORM L-4260a REQUIRED BY THE LAND DIVISION ACT (PA 288 OF 1967 AS AMENDED BY PA 87 OF 1997)

Attached are revised STC Form L-4260 and new STC Form L-4260a.

1. STC Form L-4260, PROPERTY TRANSFER AFFIDAVIT

STC Form L-4260 is the Property Transfer Affidavit required by Michigan Compiled Law (MCL) 21 1.27a(8) which must be filed by the BUYER (transferee) of property with the township or city assessor when a "Transfer of Ownership" has occurred.

Several changes have been made to the Property Transfer Affidavit (STC Form L-4260). Most of the changes are the result of amendments to MCL 21 1.27a contained in Public Act (PA) 476 of 1996. These changes are detailed in STC Bulletin No. 3 of 1997.

2. STC Form L-4260a, LAND DIVISION FORM

PA 87 of 1997, which amended the Land Division Act, requires the State Tax Commission to add certain questions to the Property Transfer Affidavit. The Property Transfer Affidavit is discussed in paragraph #1 above.

Those questions must be answered by the proprietor (OWNER) of property who is transferring the right to make a division which is exempt from the platting requirements of the Land Division Act.

Since these questions must be answered by the SELLER of property (where a sale is involved), it is necessary to put the required questions on a separate sheet which is labeled form L-4260a and will be referred to in this bulletin as the Land Division Form.

Having the questions on a separate sheet allows the filing of the Land Division Form in those instances when the Property Transfer Affidavit is not required to be filed. It also allows the separate filing of the Land Division Form by the SELLER of property. Please recall that the BUYER of property files the Property Transfer Affidavit.

Important Note: There will be situations in which the Land Division Form (L-4260a) will be required to be filed and the Property Transfer Affidavit (L-4260) will not and vice- versa.

The Land Division Form (STC Form L-4260a) contains instructions about when the form is required by law to be filed. Your questions about the provisions of the Land Division Act should be addressed to the Subdivision Control Section of the Department of Consumer and Industry Services at (517) 334-7750.