2006 Code of Virginia § 58.1-811 - Exemptions

58.1-811. Exemptions.

A. The taxes imposed by 58.1-801 and 58.1-807 shall not apply to any deedconveying real estate or lease of real estate:

1. To an incorporated college or other incorporated institution of learningnot conducted for profit, where such real estate is intended to be used foreducational purposes and not as a source of revenue or profit;

2. To an incorporated church or religious body or to the trustee or trusteesof any church or religious body, or a corporation mentioned in 57-16.1,where such real estate is intended to be used exclusively for religiouspurposes, or for the residence of the minister of any such church orreligious body;

3. To the United States, the Commonwealth, or to any county, city, town,district or other political subdivision of the Commonwealth;

4. To the Virginia Division of the United Daughters of the Confederacy;

5. To any nonstock corporation organized exclusively for the purpose ofowning or operating a hospital or hospitals not for pecuniary profit;

6. To a corporation upon its organization by persons in control of thecorporation in a transaction which qualifies for nonrecognition of gain orloss pursuant to 351 of the Internal Revenue Code as it exists at the timeof the conveyance;

7. From a corporation to its stockholders upon complete or partialliquidation of the corporation in a transaction which qualifies for incometax treatment pursuant to 331, 332, 333 or 337 of the Internal Revenue Codeas it exists at the time of liquidation;

8. To the surviving or new corporation, partnership or limited liabilitycompany upon merger or consolidation of two or more corporations,partnerships or limited liability companies, or in a reorganization withinthe meaning of 368 (a) (1) (C) and (F) of the Internal Revenue Code asamended;

9. To a subsidiary corporation from its parent corporation, or from asubsidiary corporation to a parent corporation, if the transaction qualifiesfor nonrecognition of gain or loss under the Internal Revenue Code as amended;

10. To a partnership or limited liability company, when the grantors areentitled to receive not less than 50 percent of the profits and surplus ofsuch partnership or limited liability company; provided that the transfer toa limited liability company is not a precursor to a transfer of control ofthe assets of the company to avoid recordation taxes;

11. From a partnership or limited liability company, when the grantees areentitled to receive not less than 50 percent of the profits and surplus ofsuch partnership or limited liability company; provided that the transferfrom a limited liability company is not subsequent to a transfer of controlof the assets of the company to avoid recordation taxes;

12. To trustees of a revocable inter vivos trust, when the grantors in thedeed and the beneficiaries of the trust are the same persons, regardless ofwhether other beneficiaries may also be named in the trust instrument, whenno consideration has passed between the grantor and the beneficiaries; and tothe original beneficiaries of a trust from the trustees holding title under adeed in trust;

13. When the grantor is the personal representative of a decedent's estate ortrustee under a will or inter vivos trust of which the decedent was thesettlor, other than a security trust defined in 55-58.1, and the solepurpose of such transfer is to comply with a devise or bequest in thedecedent's will or to transfer title to one or more beneficiaries after thedeath of the settlor in accordance with a dispositive provision in the trustinstrument; or

14. When the grantor is an organization exempt from taxation under 501 (c)(3) of the Internal Revenue Code that is organized and operated primarily toacquire land and purchase materials to erect or rehabilitate low-cost homeson such land, which homes are sold at cost to persons who otherwise would beunable to afford to buy a home through conventional means, located in acounty with a population of not less than 28,500 and not more than 28,650 ora city with a population of not less than 66,000 and not more than 70,000.

B. The taxes imposed by 58.1-803 and 58.1-804 shall not apply to any deedof trust or mortgage:

1. Given by an incorporated college or other incorporated institution oflearning not conducted for profit;

2. Given by the trustee or trustees of a church or religious body or given byan incorporated church or religious body, or given by a corporation mentionedin 57-16.1;

3. Given by any nonstock corporation organized exclusively for the purpose ofowning and/or operating a hospital or hospitals not for pecuniary profit;

4. Given by any local governmental entity or political subdivision of theCommonwealth to secure a debt payable to any other local governmental entityor political subdivision; or

5. Securing a loan made by an organization described in subdivision 14 ofsubsection A of this section.

C. The tax imposed by 58.1-802 shall not apply to any:

1. Transaction described in subdivisions 6 through 13 of subsection A of thissection;

2. Instrument or writing given to secure a debt;

3. Deed conveying real estate from an incorporated college or otherincorporated institution of learning not conducted for profit;

4. Deed conveying real estate from the United States, the Commonwealth or anycounty, city, town, district or other political subdivision thereof;

5. Conveyance of real estate to the Commonwealth or any county, city, town,district or other political subdivision thereof, if such political unit isrequired by law to reimburse the parties taxable pursuant to 58.1-802; or

6. Deed conveying real estate from the trustee or trustees of a church orreligious body or from an incorporated church or religious body, or from acorporation mentioned in 57-16.1.

D. No recordation tax shall be required for the recordation of any deed ofgift between a grantor or grantors and a grantee or grantees when noconsideration has passed between the parties. Such deed shall state thereinthat it is a deed of gift.

E. The tax imposed by 58.1-807 shall not apply to any lease to the UnitedStates, the Commonwealth, or any county, city, town, district or otherpolitical subdivision of the Commonwealth.

F. The taxes imposed by 58.1-801, 58.1-802, 58.1-807, 58.1-808 and58.1-814 shall not apply to (i) any deed of gift conveying real estate or anyinterest therein to The Nature Conservancy or (ii) any lease of real propertyor any interest therein to The Nature Conservancy, where such deed of gift orlease of real estate is intended to be used exclusively for the purpose ofpreserving wilderness, natural or open space areas.

G. The words "trustee" or "trustees," as used in subdivision 2 ofsubsection A, subdivision 2 of subsection B, and subdivision 6 of subsectionC, include the trustees mentioned in 57-8 and the ecclesiastical officersmentioned in 57-16.

H. No recordation tax levied pursuant to this chapter shall be levied on therelease of a contractual right, if the release is contained within a singledeed that performs more than one function, and at least one of the otherfunctions performed by the deed is subject to the recordation tax.

I. No recordation tax levied pursuant to this chapter shall be levied on adeed, lease, easement, release, or other document recorded in connection witha concession pursuant to the Public-Private Transportation Act of 1995 (56-556 et seq.) or similar federal law.

(Code 1950, 58-54.1, 58-55.1, 58-58, 58-61, 58-64, 58-64.1; 1952, cc. 191,461; 1956, c. 377; 1964, cc. 19, 361; 1970, cc. 313, 420, 772; 1971, Ex.Sess., c. 60; 1972, cc. 186, 250; 1973, cc. 139, 336; 1975, c. 249; 1976, c.558; 1977, cc. 398, 418; 1978, c. 714; 1979, cc. 559, 566; 1980, c. 652;1981, cc. 267, 443; 1982, cc. 436, 630, 633, 651; 1983, c. 89; 1984, cc. 397,428, 675; 1985, c. 134; 1988, cc. 429, 738; 1990, c. 289; 1992, cc. 574, 575;1994, c. 429; 1995, cc. 127, 303; 1998, c. 333; 1999, c. 400; 2000, cc. 393,602; 2004, cc. 492, 626; 2005, cc. 93, 928; 2006, c. 922.)