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Update: Fannie Mae and Freddie Mac Exempt from Michigan Real Estate Transfer Tax

Update:  

In a lawsuit joined by the Michigan Attorney General and Department of Treasury, Judge Bell dismissed Fannie Mae and Freddie Mac from a lawsuit alleging that Fannie Mae and Freddie Mac did not pay Michigan's Real Estate Transfer Tax.  

Even though Fannie Mae and Freddie Mac have executed transfers of foreclosed properties that fall within the terms of Michigan's Real Estate Transfer Tax, and even though Fannie Mae and Freddie Mac have not paid this tax, Fannie Mae and Freddie Mac are exempt from paying the tax pursuant to federal statutes.

Judge Bell found that federal statutes unambiguously exempt Fannie Mae and Freddie Mac from all state taxation (with one exception that does not apply).  In addition, the unambiguous and plain interpretation of the statute is consistent with the rest of the federal statutory scheme exempting the entities from state taxes.  Last, Judge Bell said that none of the Supreme Court cases cited by the Michigan Attorney General and Department of Treasury could overcome the unambiguity in the federal statute exempting Fannie Mae and Freddie Mac from the Real Estate Transfer Tax.

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About this Author

Kyle Konwinski, Litigation lawyer, Varnum
Associate

Kyle’s practice is commercial litigation. He has represented clients in a wide array of litigation, including trials, administrative trials, and on appeal. He has unique experience in environmental/land-use litigation and Employee Retirement Income Security Act litigation. Kyle has recovered millions of dollars for companies throughout the state that were victims of Blue Cross Blue Shield of Michigan's ERISA violations.

As for the environmental and land use area, Kyle has trial and appellate experience with contested case hearings in the Michigan Administrative...

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