County of Oakland v. Federal Housing Finance Agency
716 F.3d 935
6th Cir.2013Background
- State and County plaintiffs sue Fannie Mae, Freddie Mac, and FHFA to collect Michigan transfer taxes on property transfers recorded by defendants.
- Congress exempted Fannie Mae, Freddie Mac, and FHFA from 'all taxation' except taxes on real property.
- Michigan transfer taxes are levied on the seller/grantor when a deed or conveyance is recorded.
- District court granted summary judgment for plaintiffs, concluding transfer taxes fall outside the exemption.
- This panel reverses, vacates, and remands with instructions to enter summary judgment for defendants.
- Courts discuss Wells Fargo, Bismarck, and other authorities to determine whether 'all taxation' includes transfer taxes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 'all taxation' exclude transfer taxes? | Oakland County argues 'all taxation' does not include transfer taxes. | Fannie, Freddie, and FHFA argue 'all taxation' includes transfer taxes. | Yes; exemptions cover transfer taxes. |
Key Cases Cited
- Fed. Land Bank of St. Paul v. Bismarck Lumber Co., 314 U.S. 95 (U.S. 1941) (plain exemption of 'taxation' includes taxes beyond direct taxes)
- Wells Fargo Bank v. United States, 485 U.S. 351 (U.S. 1988) (exemption of 'all taxation' to property may not extend to excise taxes on transfer)
- United States v. State of Mich., 851 F.2d 803 (6th Cir. 1988) (entity exemption interpretations in Michigan context)
- Jimenez v. Quarterman, 555 U.S. 113 (U.S. 2009) (plain-language interpretation favored when statute unambiguous)