The Transfer Taxman Cometh: 50 State Charts, Ownership Q&As, and State-Specific Practice Notes | Practical Law

The Transfer Taxman Cometh: 50 State Charts, Ownership Q&As, and State-Specific Practice Notes | Practical Law

Transfer tax rates are trending upwards in several major cities with new legislation already announced in Philadelphia and San Francisco. Take advantage of Practical Law Real Estate's transfer tax resources to stay ahead of the trend on your next deal.

The Transfer Taxman Cometh: 50 State Charts, Ownership Q&As, and State-Specific Practice Notes

by Practical Law Real Estate
Published on 31 Jan 2017 • USA (National/Federal)
Transfer tax rates are trending upwards in several major cities with new legislation already announced in Philadelphia and San Francisco. Take advantage of Practical Law Real Estate's transfer tax resources to stay ahead of the trend on your next deal.
With cities like Philadelphia and San Francisco announcing higher transfer tax rates and increased restrictions, real estate practitioners are looking for ways to structure deals to achieve cost savings for their clients by minimizing transfer tax liability.
Transfer taxes are a complex issue in real estate transactions, particularly for large multi-property or multi-state portfolio deals. Transfers of ownership through stock purchases or corporate mergers may also trigger indirect transfer tax liability. A property transaction may prompt transfer taxes at various levels of government, including state, county, and city taxes.
Practical Law Real Estate offers several types of resources that keep practitioners up to date on transfer tax rates, rules, and customs. These resources are helpful for practitioners conducting deals in unfamiliar jurisdictions and for keeping current in their own state.

Start with the State Transfer Tax Comparison Chart

The State Transfer Tax Comparison Chart provides quick answers for transfer tax questions in every jurisdiction. At a glance, the chart shows:
  • If tax is due on direct transfers.
  • If tax is due on indirect transfers.
  • Who customarily pays the tax.
  • The tax rate, including statutory citations.
  • If any local taxes are due along with links to county or city recorder's offices for further guidance.

Learn more with the Real Estate Ownership State Q&A Tool

The Real Estate Ownership State Q&A Tool covers common ownership questions in 43 states (with more to come). Question 10 of each Ownership Q&A covers tax issues regarding direct transfers of real estate, including:
  • State and local transfer tax rates.
  • Applicable exemptions.
  • Transfer tax returns or other documents that must be filed.
  • Rules regarding the timing for filing and payment of the transfer tax.
  • Who typically is responsible for payment.
  • Citations to statutory authority.
Question 11 further details whether transfer taxes are triggered by indirect transfers of ownership through stock sales or other corporate mergers, including:
  • If transfer tax is applicable to indirect transfers.
  • The percentage or amount of ownership interest that triggers indirect transfer tax.
  • If different forms or returns must be filed based on whether an entity or individual is acquiring a controlling interest.

Be Confident with State-Specific Transfer Tax Practice Notes

For certain states, Practical Law Real Estate offers in-depth Practice Notes so you can master a jurisdiction's transfer tax rules, including:
For the most current information about transfer tax developments, be sure to see Practical Law Real Estate's Legal Updates: