86-106 | Virginia Tax

Tax Type

Recordation Tax

Description

Exemption under Utilities Transfer Act

Topic

Documents Subject to Tax

Exemptions

Date Issued

06-18-1986

June 18, 1986

Re: Recordation tax exemption under Utilities Transfer Act
§56-90.1

Dear ******************

You have requested a ruling regarding the exemption for transfers of utility property under the Utilities Transfer Act, §§56-88 et seq.

The proposed conveyance of assets has been approved by a Virginia State Corporation Commission examiner and the S.C.C. is expected to endorse the examiner's findings and approve the proposed conveyance. The parties desire to have the conveyance take place immediately upon receipt of the S.C.C.'s approval order.

Assuming that the State Corporation Commission has issued an order approving the proposed transfer of utility property, I am of the opinion that the following deeds may be recorded without the payment of any state recordation tax:

- The conveyance of parcels of land used for **********************.

It should be noted that the proposed conveyance will be subject to local recordation tax as if the state tax had been imposed. For this purpose the "grantor's tax" under §58.1-802 is a state tax and may not be imposed on the Proposed conveyance.

In addition, the deed should contain a marginal notation that it is exempt from state recordation tax under §56-90.1. See §17-59.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner