Bill Text: VA SB999 | 2015 | Regular Session | Enrolled
Bill Title: Deeds of trust or mortgages; calculation of tax shall be calculated using rate scale, etc.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-03-23 - Governor: Acts of Assembly Chapter text (CHAP0434) [SB999 Detail]
Download: Virginia-2015-SB999-Enrolled.html
Be it enacted by the General Assembly of Virginia: 1. That §§58.1-803, 58.1-809, and 58.1-812 of the Code of Virginia are amended and reenacted as follows: §58.1-803. Deeds of trust or mortgages; maximum tax. A. 2. In any case in which the amount which may be secured under a deed of trust or mortgage is not ascertainable, or in which the obligations described are not fully secured because they exceed the fair market value of the property conveyed, the tax shall be based upon the fair market value of the property conveyed, determined as of the date of the deed of trust or mortgage. The fair market value of the property shall include the value of any realty required by the terms of the deed of trust or mortgage to be constructed thereon. B. On deeds of trust or mortgages upon the works and property of a railroad lying partly within the Commonwealth and partly without the Commonwealth, the tax shall be only upon such proportion of the amount of bonds, or other obligations secured thereby, as the number of miles of the line of such company in the Commonwealth bears to the whole number of miles of the line of such company conveyed by such deed of trust or mortgage.
C. On deeds of trust or mortgages, which provide for an initial issue of bonds, to be followed thereafter by additional bonds, unlimited in amount, if such deed of trust or mortgage provides that as and when such additional bonds are issued a supplemental indenture shall be recorded in the office in which the original deed of trust or mortgage is first recorded, which supplement shall contain a statement as to the amount of the additional bonds to be issued, then the tax shall be paid upon the initial amount of bonds when the original deed of trust is recorded and thereafter on each additional amount of bonds when the supplemental indenture relating to such additional bonds is recorded. D. 1. On deeds of trust 2. If the principal amount of the obligation secured by the prior instrument is increased by the supplemental instrument, the tax imposed under this section shall be paid only on the amount of the increase over the original amount secured by the prior instrument. If the bonds or other obligations secured by a prior instrument were not fully secured because they exceeded the fair market value of the property conveyed and the tax paid on the prior instrument was based upon the fair market value of the property conveyed pursuant to subdivision A 2, then the foregoing tax shall be paid on the increase, if any, in the value of such property since the recordation of the prior instrument. 3. The supplemental instrument, or any cover sheet submitted with the supplemental instrument, shall include the original principal amount of the bonds or other obligations secured by the prior instrument, the deed book and page number or instrument number, as applicable, of the prior instrument, and, if applicable with regard to the calculation of the tax paid on the prior instrument, any increase in the fair market value of the property conveyed.
On the first $10 million of value as determined pursuant to this section, 18 cents ($0.18) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 16 cents ($0.16) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 14 cents ($0.14) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 12 cents ($0.12) upon every $100 or portion thereof; and On all over $40 million of value as determined pursuant to this section, 10 cents ($0.10) upon every $100 or portion thereof, incorporated into this section. 2. The instrument shall certify the deed book and page
number or instrument number, as applicable, of the recorded instrument
on which the tax for the original debt was paid. For purposes of this
subsection, the term "value" means
On the first $10 million of value as determined pursuant to this section, 25 cents ($0.25) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 22 cents ($0.22) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 19 cents ($0.19) upon every $100 or portion thereof; On the next $10 million of value as determined pursuant to this section, 16 cents ($0.16) upon every $100 or portion thereof; and On all over $40 million of value as determined pursuant to this section, 13 cents ($0.13) upon every $100 or portion thereof, incorporated into this section. §58.1-809. When supplemental writings not taxable. Sections 58.1-803, 58.1-807, and 58.1-808 are not to be
construed as requiring the payment of any tax for the recordation of any deed
of trust, deed of subordination, mortgage, contract, agreement, modification,
addendum, or other writing that is supplemental to any The assumption of a deed of trust shall not be separately
taxable under §58.1-812. Payment prerequisite to recordation; exceptions; assessment and collection of tax; penalty for misrepresentation. A. Except as otherwise provided in this chapter, no deed, deed
of trust, contract or other instrument shall be admitted to record without the
payment of the tax imposed thereon by law and the fee pursuant to §58.1-817,
as applicable. However, after payment of the tax imposed by this chapter, when
an instrument is first offered for recordation, such instrument may thereafter
be recorded in the office of any other clerk without the payment of any tax
except any local recordation tax as provided in Article 1 (§58.1-3800 et seq.)
of Chapter 38 B. The tax on every deed, deed of trust, contract or other instrument shall be determined and collected by the clerk in whose office the instrument is first offered for recordation. The clerk may ascertain the consideration of the deed or of the instrument, the actual value of the property conveyed, and the qualification of the deed or instrument for any exemption claimed by inquiry, affidavit, declaration or other extrinsic evidence acceptable to the clerk. The fee shall be $1 on every recorded deed pursuant to §58.1-817 and shall be collected by the clerk in whose office the deed is offered for recordation. C. Any person who knowingly misrepresents the consideration for the interest in property conveyed by a deed or other instrument or any of the other information requested by the clerk of court pursuant to this section shall be guilty of a Class 1 misdemeanor. If an understatement of the consideration is false or fraudulent with intent to evade a tax, a penalty equal to 100 percent of the tax due on the understatement shall be added to the amount of the tax due, plus interest on the tax at a rate determined in accordance with §58.1-15 from the time the tax was required by law to be filed until paid. D. Except as otherwise specifically provided, nothing contained in this chapter shall limit the right of the parties to any deed, deed of trust, contract, lease, or other instrument to allocate responsibility for the payment of the recordation taxes and fees imposed under this chapter among themselves in any manner they determine. A clerk who in good faith collects such taxes and fees upon recordation of a deed, deed of trust, contract, lease, or other instrument in reliance upon information provided by the person submitting such deed, deed of trust, contract, lease, or other instrument for recordation shall have no personal liability for any deficiency in the amount of such taxes or fees collected that is later determined to be due and payable. 2. That the provisions of this act shall be applicable to transactions occurring on or after July 1, 2015. |