Massachusetts Deed Stamp Tax Exemptions

Massachusetts real estate tax stamps are mandatory payments. The cost of the tax must be included in the total cost of the property purchased. Since it is negotiable, buyers and sellers should familiarize themselves with it. If the taxpayer does not put excise stamps on a document at all, the Department of Finance can estimate the tax and penalties at any time. Confirm that the transfer of ownership is subject to real estate transfer tax. Massachusetts excludes certain transfers from tax. Exclusions include gifts, transfers by merger or dissolution of businesses, and sales to state housing authorities. Acts of foreclosure are not always exempt from real estate transfer tax. The exchange of the two packages is subject to the excise tax of the tax on deeds, as follows: The Massachusetts Department of Revenue applies the real estate transfer tax. Stamps on a certificate are proof of payment. If a taxpayer affixes excise tax stamps to an act but has not put enough stamps on it to cover the transaction, the state can estimate the additional tax and charge interest within three years. If the taxpayer has not affixed excise tax stamps to an act at all, there is no time limit and the Department of Finance says it can estimate taxes and penalties at any time. When the parties exchange real estate, the transfer of each package of excise duties is subject to deed tax.

If land is transferred in exchange for property other than immovable property (i.e. personality), only the transfer of the property is subject to excise duty. In the case of similar barter transactions, the consideration is in any event the value of the goods received by the buyer. In most Massachusetts counties, land transfer taxes are $4.56 per thousand, although they are higher in some counties. The fee is listed on line 1203 of the HUD-1 settlement statement. The statement is usually available the day before closing, and you and your lawyer can review it in advance. You must pay the land transfer tax in the register of deeds to register the deed and complete the sale. This sum is paid by Fred as the manufacturer of the certificate given to Ginger. Note that the extra money is excluded in the calculation of excise duty, as it is not real estate subject to excise duty. Land transfer tax is required by Chapter 64D of the General Laws of Massachusetts, Section 1, which provides that the tax must be levied at any time when real estate is granted, assigned, transferred or otherwise transferred to the purchasers, and the consideration associated with the transaction is greater than $100. This means that for donation transfers and transactions of $100 or less, transfer taxes will not be charged, but a registration fee will be charged. However, the fee is not limited to the documents or instruments to be covered.

The tax must be paid by the person who executes the act or deed of transfer or for whose benefit the deed was issued or signed. Section 12. all agricultural, horticultural or agricultural and horticultural land valued, valued and taxed in accordance with the provisions of this Chapter if it is sold for another use within ten years of the date of its acquisition or the earliest date of its uninterrupted use by the current owner in agriculture or horticulture, the first being retained; are subject to a transfer duty applicable to the total sale price of such land, which is levied in addition to the taxes that may be levied under another legal provision. These land transfer taxes are as follows: ten per cent if they are sold during the first year of ownership; nine per cent if sold in the second year of ownership; eight per cent if sold in the third year of ownership; seven per cent if sold in the fourth year of ownership; six per cent if sold in the fifth year of ownership; five per cent if sold in the sixth year of ownership; four per cent if sold in the seventh year of ownership; three per cent if sold in the eighth year of ownership; two per cent if they are sold in the ninth year of ownership; one percent if it is sold within the tenth year of ownership. Notwithstanding the preceding sentence, no transfer duty shall be imposed if the land in question or a smaller proportion of that land is acquired by the city or town in which it is situated by the Commonwealth or a non-profit natural resource conservation organization, but if part of the land is sold or converted for commercial purposes. Within 5 years of the acquisition by a non-profit conservation organisation, the transfer duties against the non-profit nature protection organisation shall be fixed at the amount that would have been assessed at the time of the acquisition of the land in question by the non-profit conservation organisation if that transaction had been subject to a tax of mutation. Land transfer taxes are only fixed on the part of the property on which the use has changed. At the end of the tenth year of ownership, no land transfer duty shall be levied under the provisions of this article. These land transfer taxes are due and payable by the settlor at the time of the transfer of the assets by deed or other instrument of transfer and are payable to the collector of the city or municipality where the property is entered on the tax list.

In the event of takeover by eminent domain, the value of the property acquired shall be determined in accordance with Chapter 79 and the amount of the transfer of immovable property duties, if any, shall be added to that amount as value added. If an affidavit of the buyer is made to the expert committee that the land is acquired for agricultural, horticultural or agricultural and horticultural purposes, no transfer duty is due by the seller as a result of the sale, but if the land is no longer used for at least 5 consecutive years, the buyer is liable for the transportation tax that would have been payable at the time of the sale as a sale to others Purposes. Real estate transfer taxes are only fixed on the part of the property whose use has changed. A non-exempt transfer following one or more exempt transfers shall be subject to the provisions of this Section. In the case of such an unfenced transfer, the date of acquisition by the grantor shall, for the purposes of this Section, be deemed to be the date of the last previous transfer, which shall not be excluded from the application of this Section by the preceding provisions; except that, in the case of a transfer by a concessionaire who has acquired the property of a hypothecary creditor who has been forcibly auctioned, the date of acquisition shall be deemed to be the date of acquisition. Agricultural or horticultural land assessed, valued and taxed in accordance with the provisions of this Chapter shall, for a period of ten years from the date of its acquisition by that owner, be subject to the transfer of immovable property duties applicable at the time of the change of use, as if an actual transfer had taken place; and the value of the land for the purpose of determining a total sale price is the fair market value determined by the council of appraisers of the city or municipality concerned for all other property. If a tax levied under this section is not paid, the collector shall have the same powers and be subject to the same obligations in respect of such taxes as in the case of annual taxes on immovable property, and the Act respecting the collection of annual taxes, the sale of land for non-payment and reimbursement shall apply to such taxes. in so far as the same are applicable. Although the tax rates in this article are current to October 2013, it is wise to check with your county`s Registry of Deeds to find out what the current rate is. .