Tax Type
Recordation Tax
Description
Utilities Transfer Act
Topic
Documents Subject to Tax
Date Issued
06-10-1985
June 10, 1985
Re: Request for Ruling; Recordation Tax
§ 56-90.1 Utilities Transfer Act
Dear ****
The taxpayer is a public utility which has received permission from the State Corporation Commission (S.C.C.) to exchange an undivided fractional interest in its utility assets for an undivided fractional interest in the utility assets of other public utilities.
The exchange will require that deeds be recorded in a number of Virginia counties as well as in counties of another state. The taxpayer has requested a ruling that the deeds to effect this exchange are exempt from any state recordation tax under §§58.1-801 et. seq.
The Utilities Transfers Act, § 56-88 et. seq., provides that a public utility must obtain the approval of the S.C.C. prior to the acquisition or disposition of utility assets. The act also provides that no state recording tax shall be payable upon the admission to record of any deed which conveys utility assets to another public utility; however, the act expressly provides that local recording taxes shall be payable as though the state recording taxes had been collected. § 56-90.1.
The conveyances set forth above qualify for the exemption from recordation tax under § 56-90.1, because utility assets are being conveyed from one public utility to another public utility and the transaction has been approved by the S.C.C. Therefore, the deed or deeds conveying the above described utility assets may be admitted to record exempt from the taxes imposed by § 58.1-801 and § 58.1-802. Each county may impose the local recordation tax authorized by §§ 58.1-814 and 58.1-3800 et. seq. as if a state recordation tax had been collected.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Request for Ruling; Recordation Tax
§ 56-90.1 Utilities Transfer Act
Dear ****
The taxpayer is a public utility which has received permission from the State Corporation Commission (S.C.C.) to exchange an undivided fractional interest in its utility assets for an undivided fractional interest in the utility assets of other public utilities.
The exchange will require that deeds be recorded in a number of Virginia counties as well as in counties of another state. The taxpayer has requested a ruling that the deeds to effect this exchange are exempt from any state recordation tax under §§58.1-801 et. seq.
The Utilities Transfers Act, § 56-88 et. seq., provides that a public utility must obtain the approval of the S.C.C. prior to the acquisition or disposition of utility assets. The act also provides that no state recording tax shall be payable upon the admission to record of any deed which conveys utility assets to another public utility; however, the act expressly provides that local recording taxes shall be payable as though the state recording taxes had been collected. § 56-90.1.
The conveyances set forth above qualify for the exemption from recordation tax under § 56-90.1, because utility assets are being conveyed from one public utility to another public utility and the transaction has been approved by the S.C.C. Therefore, the deed or deeds conveying the above described utility assets may be admitted to record exempt from the taxes imposed by § 58.1-801 and § 58.1-802. Each county may impose the local recordation tax authorized by §§ 58.1-814 and 58.1-3800 et. seq. as if a state recordation tax had been collected.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner