Tax Type
Local Taxes
Recordation Tax
Description
Local recordation tax
Topic
Documents Subject to Tax
Local Power to Tax
Local Taxes Discussion
Date Issued
05-04-1987
May 4, 1987
Re: §58.1-801 Recordation Tax
§58.1-3800 Local Recordation Tax
Dear ********************
This is in response to your letter of March 24, 1987, in which you expressed concern over the amount of the recordation tax collected when you recorded your Quit Claim Deed.
Under Virginia law, every deed conveying real estate is subject to a tax on recordation unless specifically exempted. There is a state tax imposed by §58.1-801, a local tax authorized by §58.1-3800, and an additional tax (usually referred to as the "grantor's tax") imposed by §58.1-802. I am enclosing a copy of each section of the code.
According to the notations made by the clerk on your deed, you were charged the following amounts:
-
- A state tax (§58.1-801) of **************
A local tax §58.1-3800) of **************
A transfer fee (§58.1-3314) of ***********
A clerk's fee (§14.1-112) of ***********
- A state tax (§58.1-801) of **************
Of the amount you paid, $ ******* consisted of fees to offset the cost of maintaining the recording system, indexing, and transferring parcels on the deed books. These fees would have been charged even if your deed had been exempt from tax.
The difference between Virginia's grantor's tax and the other taxes is that the grantor's tax is imposed only on the consideration for the deed. The tax imposed by §58.1-801, and the local tax, are imposed on the consideration or actual value, whichever is greater. Thus no grantor's tax is imposed on gifts or other deeds in which no consideration is paid, but the other taxes are imposed on such deeds based on the actual value of the real estate conveyed.
You state that friends in California have recorded similar deeds and paid only $***** California has no state recordation tax but authorizes cities and counties to impose a local "Document Transfer Tax" which is very similar to Virginia's grantor's tax. (§11901 et eq. Revenue and Taxation Code of California.) Since your deed was not subject to Virginia's grantor's tax it is not surprising that your friend's deed was not subject to California's Document Transfer Tax. The $ *********charged appears to be equivalent to Virginia's fees for recording and indexing a deed.
I hope this answers your questions about the law imposing the recordation tax.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner