Tax Type
Recordation Tax
Description
Deed of Trust
Topic
Documents Subject to Tax
Date Issued
03-11-1994
March 11, 1994
Re: §58.1-1821 Application; Recordation Tax;
Dear**********
The clerk of the circuit court has forwarded your letter of January 5, 1994, and asked us to respond to your request for a refund of recordation tax. We have treated your letter as an application for correction of an erroneous assessment under Va. Code §58.1-1821.
The issue is whether a deed of trust by which *************conveyed property to secure a loan made by H.U.D. qualified for the exemption under Va. Code §58.1-811 A. 3. for deeds conveying real estate to the United States.
The department concurs with the clerk's interpretation that the exemptions listed in subsection A of §58.1-811 do not apply to deeds of trust. The confusion arises from the recodification of Title 58.1 and earlier restructuring of the predecessor of §58.1-811.
Senate Bill 226, which has passed both houses of the 1994 General Assembly, would clarify the exemption section. I have attached copies of the bill, the department's Legislative Impact Statement explaining how the confusion arose, and copies of some of the relevant versions of the predecessor sections.
Therefore, the tax was properly imposed on the deed of trust and I must deny your request for a refund of recordation tax.
Sincerely,
Danny M. Payne
Acting Tax Commissioner
Rulings of the Tax Commissioner