Bulletin Number
VTB 81-4
Tax Type
Recordation Tax
Description
Recordation Tax: 1981 Legislative Changes
Topic
Documents Subject to Tax
Date Issued
06-01-1981
DATE: June 1, 1981
SUBJECT: Recordation Tax: 1981 Legislative Changes
The 1981 General Assembly passed several laws affecting recordation taxes. The purpose of this bulletin is to announce these changes.
1. Rate Limitation on Certain Recorded Leases: § 58-58 was amended to provide that the tax on recording leases of oil and gas rights shall not exceed twenty-five dollars ($25.00). This amendment is an emergency and is in force from its passage, March 21, 1981. (Chapter 443, 1981 Acts of Assembly, House Bill 1650)
2. Exemption for Certain Deeds of Trust: § 58-60 was amended to provide that the following instruments would be exempt from recordation tax:
(1) Modifications, if an original instrument has been recorded, the tax previously paid and there is no increase in the principal obligation secured.
(2) Addendums, if an original instrument has been recorded, the tax previously paid and there is no increase in the principal obligation secured.
(3) Deeds of subordination.
(4) Deeds of assumption.
The effective date of this amendment is July 1, 1981. (Chapter 621, 1981 Acts of Assembly, House Bill 1248)
3. Transfer of Assets Under Inter Vivos Trusts: § 58-64(12) was amended to clarify the language in the 1980 amendment to provide that assets passing under a will or a trust created during the decedent's lifetime would be exempt from recordation tax if transfer is to the spouse or kindred of the decedent or to the kindred of the decedent's spouse.
The effective date of this amendment is July 1, 1981. (Chapter 267, 1981 Acts of Assembly, House Bill 1248)
Anyone having questions about these legislative changes are encouraged to contact the department at P. 0. Box 6-L, Richmond, Virginia 23282.
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