Tax Type
Recordation Tax
Description
Assignment of Lease and Sale of Building; Taxes Applicable
Topic
Documents Subject to Tax
Date Issued
02-15-1973
When a document to be recorded contains both an assignment of a lease of land and a conveyance of title to a building constructed on the land by the lessee, the assignment is subject to tax under § 58-58, applicable to contracts relating to real or personal property. Since the leased premises consist solely of land, the value of the building is not considered except to any extent that the landowner's reversionary interest increases the land value. The additional realty transfer tax does not apply to the assignment because the assignment is not a sale. The conveyance of the building is subject both to the § 58-54 recordation tax and the additional § 58-54.1 tax on realty transfers. The § 58-54 tax is imposed on the consideration of the deed or the actual value of the building, whichever is greater. The § 58-54.1 tax is imposed on the actual net consideration, if it can be determined; otherwise, on actual net value. In each case, ``net' refers to the gross figure less any continuing liens or encumbrances.
Attorney General's Opinion