Tax Type
Recordation Tax
Description
Conveyance upon corporate liquidation; Refund request
Topic
Documents Subject to Tax
Exemptions
Payment and Refund
Date Issued
07-23-1986
July 23, 1996
Re: §58.1-1821 Application; Recordation Tax
§58.1-811A.7 Conveyance upon corporate liquidation
Dear *****************
This is in response to your letter of April 11, 1986, in which you applied for correction of an assessment of recordation tax on behalf of your clients, the two shareholders of the former *********************.
Upon liquidation of the corporation in accordance with §337 of the Internal Revenue Code a deed was recorded conveying property of the corporation to its two shareholders. The conveyance qualified for the exemption from recordation tax under §58.1-811A.7. However, the deed failed to state on its face the code section under which exemption was claimed as required by §17-59 of the Code of Virginia. The clerk of court properly collected the recordation tax.
A deed of correction has been recorded which sets forth the claim of exemption from recordation tax and you now request a refund of the state and local recordation tax paid.
After review of the documentation submitted with your application I am satisfied that the conveyance qualifies for the exemption in §§58.1-811A.7 and 58.1-811C and that the deed of correction properly claims the exemption.
Accordingly, the state recordation tax paid will be refunded to you. The local tax was retained by the locality and you should apply to the clerk of court for a refund.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner