Tax Type
Recordation Tax
Description
Deed of trust to secure an obligation to a U.S. agency
Topic
Documents Subject to Tax
Date Issued
02-20-1985
February 20, 1985
Subject: §58 1-803 Recordation Tax on deed of trust to secure an obligation to a U.S. agency
Dear ****
The taxpayer proposes to issue two series of bonds to the United States acting through the Administrator of the Rural Electrification Administration. The bonds will be issued in exchange for obligations of another corporation, which obligations were assumed by the taxpayer as a result of a recent merger of the other corporation into the taxpayer. As part of the transaction a supplement to an existing Indenture of Mortgage and Deed of Trust of the taxpayer will be recorded in a number of jurisdictions in which the taxpayer owns property. The supplement to the Indenture does not name the secured party, however, examination of other documents clearly establishes that the secured party in this transaction is the Rural Electrification Administration.
After reviewing the details of the proposed transaction furnished with your letter of February 6, 1985, I am of the opinion that the supplement to the Indenture is not subject to the recordation tax imposed by 58.1-803 because the secured party is an instrumentality of the United States See Report of the Attorney General, 1959-1960 at page 362.
Sincerely,
W. H. Forst
Tax Commissioner
Subject: §58 1-803 Recordation Tax on deed of trust to secure an obligation to a U.S. agency
Dear ****
The taxpayer proposes to issue two series of bonds to the United States acting through the Administrator of the Rural Electrification Administration. The bonds will be issued in exchange for obligations of another corporation, which obligations were assumed by the taxpayer as a result of a recent merger of the other corporation into the taxpayer. As part of the transaction a supplement to an existing Indenture of Mortgage and Deed of Trust of the taxpayer will be recorded in a number of jurisdictions in which the taxpayer owns property. The supplement to the Indenture does not name the secured party, however, examination of other documents clearly establishes that the secured party in this transaction is the Rural Electrification Administration.
After reviewing the details of the proposed transaction furnished with your letter of February 6, 1985, I am of the opinion that the supplement to the Indenture is not subject to the recordation tax imposed by 58.1-803 because the secured party is an instrumentality of the United States See Report of the Attorney General, 1959-1960 at page 362.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner