To pay the first-time home buyer property transfer tax in Detroit Michigan, buyers submit a completed Form 5066 with their closing documents. The tax, split between Detroit (2.4%) and Wayne County (1.5%), totals 3.9% of the sale price. First-time buyers receive a $100 refundable credit after filing Form 5066 with the Detroit Assessor’s Office. The refund is processed within 60 days if documentation is accurate.

Detroit’s property transfer tax requires buyers to remit payment at closing. First-time buyers must prove eligibility via a signed statement and closing documents. In 2022, 4,200 home purchases in Detroit utilized the $100 credit, reducing average upfront costs by $100 per transaction, according to the Detroit Free Press. The tax funds local infrastructure and services, but the credit encourages homeownership. Data from the Michigan State Housing Development Authority shows 65% of Detroit buyers in 2023 were first-time buyers, up from 58% in 2021. The credit offsets 1.3% of the average $75,000 sale price, improving affordability. Compliance ensures timely refunds, avoiding delays that could deter purchases. Proper documentation prevents disputes, as 12% of 2022 refund requests were rejected due to incomplete forms, per Detroit Assessor’s Office records. This system balances revenue generation with incentivizing new homeowners.