Tax Type
Recordation Tax
Description
Deed of trust is exempt from the state & Local recordation taxes
Topic
Estates and Trusts
Exemptions
Taxpayers' Remedies
Date Issued
07-27-2004
July 27, 2004
Re: § 58.1-1821 Application: Recordation Tax
Dear *******:
This will respond to your letter in which you seek a refund of the recordation taxes paid on a transaction involving the ***** (the "Church"). I apologize for the delay in the Department's response.
FACTS
The Church borrowed money to renovate its building. A deed of trust memorializing the loan was recorded and state and county recordation taxes were paid to the Clerk of the Court of ********* (the "County"). You contend that the recording of the deed of trust should have been exempt from recordation taxes and request a refund of the recordation taxes paid.
DETERMINATION
Virginia Code § 58.1-811(B)(2) provides that the tax on recording a deed of trust or mortgages does not apply to any deed of trust or mortgage "[g]iven by the trustee or trustees of a church or religious body." In the instant case, the documentation presented shows that the deed of trust was given by the trustees of the church. As such, the recording of this deed of trust is exempt from the state recordation taxes imposed by Va. Code §§ 58.1-803 and 58.1-804 and from the local recordation tax.
A refund for the state portion of the recordation tax will be issued shortly pursuant to the enclosed schedule. A copy of this letter will be forwarded to the County for disposition of the local portion of the tax.
The Code of Virginia section cited and other reference documents are available on-line in the Tax Policy Library section of the Department of Taxation's web site, located at www.tax.state.va.us. If you have any questions regarding this determination, you may contact ********** in the Department's Office of Policy and Administration, Appeals and Rulings, at **********.
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- Sincerely,
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- Kenneth W. Thorson
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- Tax Commissioner
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- Kenneth W. Thorson
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AR/47735B
Rulings of the Tax Commissioner