All of these fees are somewhat understandable. Maine has a variety of taxes. PL 1977, c. 394 (AMD). News Releases. ], 21. If all the fields are complete, you will receive an email confirming the declaration has been filed. The amount you spent on the transfer tax can be subtracted from your profit so that your capital gains tax bill can be reduced. Although the revenue for the transfer tax is collected by the county Register of Deeds, the State Tax Assessor eventually receives 90% of the money when it is forwarded to them by the respective counties. PL 1995, c. 462, A69-71 (AMD). Tax deeds., 6. The average homeowner who purchases a $150,000 home will pay approximately $3,700 in closing fees. E, 3 (AMD); PL 2019, c. 417, Pt. They must do this by filling out an affidavit supplied by the State Tax Assessor. Real estate that is transferred between spouses in divorce proceedings is also not taxed. The property transfer doesn't become official until it is recorded by the Register of Deeds in the county where the deed being transferred is located. B, 14 (AFF). How to Create a Real Estate Tax declaration? While this benefit is based on the property tax paid by veterans, the benefit is administered through the individual income tax. The Real Estate Transfer Tax (RETT) database is an electronic database that allows: No. Our division is responsible for the determination of the annual equalized full value (state valuation) for the 484 incorporated municipalities as well as for the unorganized territory. PL 1993, c. 718, B10-12 (AMD). B, 14 (AFF). If you Delete the document, the registry will not be able to record the deed. Is there a fee to use the RETT database? What is the Real Estate Transfer Tax database? See 33 M.R.S. Governmental entities., 2. The Register of Deeds will then forward 90% of the fee collected to the Maine state tax assessor. The Property Tax Division prepares a statistical summary of selected municipal information that must be annually reported to MRS by municipal assessing officials. PL 2009, c. 402, 22, 23 (AMD). [PL 2001, c. 559, Pt. 19 The current owner and new owner are each responsible for half the tax amount under Maine law. Deeds between certain family members., 5. The BETE program is a 100% property tax exemption program for eligible property that would have been first subject to tax in Maine on or after 4/1/08. How to Create a Real Estate Transfer Tax declaration? Click on one of the following yellow buttons on bottom page: If you have completed all the required fields select the yellow, You will be directed to a page where social security numbers or federal identification numbers must be entered for the Grantee and Grantor. What do I do if my declaration is returned to me by the Registry of Deeds? You may only view those declarations reporting property in your municipality. Click on Create an Account, a yellow box on the right side of the screen. Of course, you want an attorney to look at the necessary documents regarding the homes purchase, and the attorney needs to get paid. But did you know that a large chunk of your closing cost is a transfer tax? Then assume you're selling the house for $500,000. What is the Real Estate Transfer Tax database? Please contact our office at 207-624-5606 if you have any questions. In 2022, the Maine Legislature enacted an expanded benefit for veterans through the Property Tax Fairness credit. I, 15 (AFF). Alternate formats can be requested at (207) 626-8475 or via email. Income/Estate Tax Under the blackPrint Batch Reportclick onView printable report. Property owners would receive an exemption of $25,000. The amount to be withheld is equal to 2.5% of the sale price. Once these fields are filled, select. PL 2005, c. 519, SSS1 (AMD). for the purposes of this subsection, only the united states, the state of maine and their instrumentalities, agencies and subdivisions are exempt from the tax imposed by section 4641-a; except that real property transferred to the department of transportation or the maine turnpike authority for transportation purposes; gifts of real property to Since you paid $2,000 in transfer taxes before, your total taxable capital gains would only be $98,000. Here are the different taxes and the related rates: Income tax rates from a low of 5.8% to 7.15%. For conveyances of real property located outside New York City, file Form TP-584, Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax, with the county clerk where the property transferred is located.The form and payment of all applicable taxes are due no later than the 15th day after the . or Email: rett.tax.mrs@maine.gov. I feel like its a lifeline. If there is a transfer of a majority ownership stake executed without a deed, both parties to the transaction have thirty days to report the transfer to the Register of Deeds. Deeds prior to October 1, 1975., 10. ], 1. 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Real Estate Transfer Tax Database (for municipalities) FAQ. The Real Estate Transfer Tax (RETT) database is an electronic database that allows: Users to create and electronically file RETT declarations; Registries to process RETT declarations; MRS to approve RETT declarations; and Municipalities to view and print RETT declarations and to update data for the annual turn around document. , For the purposes of this subsection, "servicer" means a person or entity that acts on behalf of the owner of a mortgage debt to provide services related to the mortgage debt, including accepting and crediting payments from the mortgagor, issuing statements and notices to the mortgagor, enforcing rights of the owner of a mortgage debt and initiating and pursuing foreclosure proceedings; 1. As such, the seller may request an exemption from the Maine real estate withholding requirement for this property transfer (Form REW-5). PL 2017, c. 402, Pt. ], 19. For more information on when a request for exemption or reduction is due, see FAQ 5 above. No one wants to be surprised with an expensive tax at closing. PL 1981, c. 148, 1-3 (AMD). FAQ Can I search for and view for declarations that I have submitted? State, local and federal government agencies that are receiving or conveying a deed to a property are not required to pay the real estate transfer tax. The buyer and seller split the tax. You may also file the annual turn around document using the database. Alternate formats can be requested at (207) 626-8475 or via email. Users to create and electronically file RETT declarations; Municipalities to view and print RETT declarations and to update data for the annual turn around document. Create an account to start this course today. The tax is split evenly between both parties to the transaction. Deeds of distribution., [PL 2017, c. 402, Pt. We administer the real estate transfer tax, commercial forestry excise tax, controlling interest transfer tax, and telecommunications business equipment tax and we determine annually the amount of tax reimbursement to each town for veteran, homestead, and animal waste facility exemptions, and tree growth tax loss reimbursement. The current rate for the Maine transfer tax is $2.20 per every $500 of the sale. 18 Transfer tax must be paid to the register of deeds when recording a deed that is not exempt from the tax. Click on the yellow Create a New RETTD button. Limited liability company deeds., [PL 2001, c. 559, Pt. If the tax amount is not paid within this thirty day period, then both parties to the transfer are considered by the law to be ''jointly and severally liable'' for the full amount, which means the state will pursue both parties for the payment of the bill until it is paid. Another professional that knows about the idiosyncrasies regarding local tax laws is your local real estate agent. For the applicable interest rate, contact your municipality or the Property Tax Division for property in the unorganized territory. How do I update the turn around document? As required by the Constitution of Maine, article IV, part third, 23, the Legislature must reimburse each municipality at least 50% of the property tax revenue loss suffered by that municipality during the previous calendar year as a result of statutory property tax exemptions or credits enacted after April 1, 1978. Taxes Home You will see a list of the RETTDs for that period. You will also see the declaration in your account queue. Forms not received timely may be denied an exemption or reduction. This tax, which can be collected by the city, county, or state (or all three), is usually based on a percentage of the sale price of your home. MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Fannie Mae and Freddie Mac Exemption from Real Estate Transfer Tax (PDF), Free Online Real Estate Transfer Tax Filing Service (PDF), 4641-E Powers and duties of State Tax Assessor, Real Estate Transfer Tax Database FAQs (for municipalities). Fully exempt property tax may include real estate or personal property owned by governmental entities . This approximates the national average rate. The fees may include an application fee, an attorney fee, the cost of a credit report, the cost of a home inspection, and the lead-based paint inspection. 36 M.R.S. 54 The purchaser must transmit the withheld amount to the State Tax Assessor within 30 days. You might not be charged capital gains tax if you lived in the house that you sold more than two years. Transfer Tax Maine Revenue Services. Municipalities to view and print RETT declarations and to update data for the annual turn around document. parent to child, grandparent to grandchild or spouse to spouse). While this benefit is based on the property tax paid by veterans, the benefit is administered through the individual income tax. 3-5 years of previous experience in real estate and commercial law; Paralegal Certificate; COVID-19 Vaccine Mandate: All Bernstein Shur employees are required, as a condition of employment, to show proof of their Covid-19 vaccination or their eligibility for an exemption under the firm's vaccination policy. Certain corporate, partnership and limited liability company deeds., 17. The seller. Property Tax Alternate formats can be requested at (207) 626-8475 or via email. If a conveyance is exempt, the exemption must be clearly stated on the face of the deed. What do I do if my declaration is returned to me by the Registry of Deeds? What do I do if my declaration is returned to me by the Registry of Deeds? You may search by Book # and Page #, and by Minimum Price and Maximum Price as reported on the declaration. 6. Our office is also staffed to administer and oversee the property tax administration in the unorganized territory. All fields marked with a red asterisk (*) must be completed. The declaration of value form is a summary of the transaction which includes the signature of both parties to the transaction, their tax ID numbers, the assessor's parcel number of the subject property and the price of the property. If all the fields are complete, you will receive an email confirming the declaration has been filed. Is there a fee to use the RETT database? Home Mortgage deeds, deeds of foreclosure and deeds in lieu of foreclosure., 3. . This form must be submitted at least 5 business days prior to the closing. What happens to the declaration after I process it? PL 1985, c. 691, 32 (AMD). There are 21 exemptions to the transfer tax laws as outlined in Chapter 711-A: Real Estate Transfers document. The transfer tax is paid, so the ownership of the property is transferred from the seller to the buyer. ], 16. PL 1993, c. 680, A31 (AMD). You may also search by theDLN(document locator number); this unique number is displayed on the database and on the printed copy currently mailed to the municipality. PL 2005, c. 397, C22 (AFF). Both the buyer and seller pay transfer taxes in Maine. After review, the Registrar will either accept the declaration or reject the declaration back to the preparer. Deeds given pursuant to the United States Bankruptcy Code., 15. FAQ The rate of tax is $2.20 for each $500 or fractional part of $500 of the value of the property being transferred. There is no fee to obtain an account or to access and use the database. Click theSelect Allbox or select the single declarations you wish to print. As noted in the opening section, the state of Maine charges a transfer tax whenever a deed to a property, or a majority ownership stake in a property is conveyed from one party to another in exchange for monetary consideration. The Registrar will review the declaration when the deed is received for recording. To process the sale, click on theProcessbutton, enter the required fields and then select theSave & Continuebutton at the bottom of the page. PL 1993, c. 647, 1-4 (AMD). 7. Certain transfers are exempt from the transfer tax. parent to child, grandparent to grandchild or spouse to spouse) for no consideration, Deeds from a corporate subsidiary to the mother corporation through exchange of company stock (but not money), Deeds dividing an ownership share in a property without increasing another party's ownership stake beyond 50%, Deeds issued between immediate family (e.g. The Registrar will review the declaration when the deed is received for recording. Exemptions; Maps; Personal Property Tax Information; Real Estate Tax Information; Real Estate Transfer Tax Declaration Search; Research Deeds Online; Stabilize Property Taxes for Individuals 65 Years of Age or Older; State Property Tax Deferral Program; Tax Bills; Tax Increment Financing; Tax . Homestead Exemption -This program provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1 their permanent residence. Houses (1 days ago) Certain transfers are exempt from the transfer tax. To view PDF, Word or Excel documents, you will need the free document readers. C, 106 (AMD). 2. Below we will provide an overview of the Maine real estate transfer tax. Deeds to a trustee, nominee or straw., [PL 1993, c. 647, 2 (AMD); PL 1993, c. 718, Pt. Note that for sales occurring on or after January 1, 2021, this withholding requirement applies to sales of property only when the consideration paid is $100,000 or more (previously $50,000). The tax rate is $2.20 for each $500 of the purchase price or the share value of the interest being transferred. The Transfer Date search will identify a declaration using the date of transfer reported on the declaration, not the date recorded by the registry. Sales & Use, Withholding, and Service Provider Tax Registration. Property owners would receive an exemption of $25,000. You will be provided a password when your account is created; we recommend that you change this password so that only you (and your staff) will know the password. Home The seller pays 1.25%. Exemptions State, local and federal government agencies that are receiving or conveying a deed to a property are not required to pay the real estate transfer tax. B, 14 (AFF).]. The Registry of Deeds, Maine Revenue Services and the municipality may access the declaration by entering that DLN into their database. MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Renewable Energy Investment Exemption Application (PDF), Flowchart of Veteran's Exemption Qualifications (PDF). When the deed reflecting the new owner is presented to the Register of Deeds for recording, the register will calculate the amount due based on the information included in the declaration of value form, which must be signed by both parties to the transaction. At the risk of spoiling the plot, it is essential to know that real estate transfer taxes do not apply when a property is transferred between family members. Deeds to charitable conservation organizations., 18. Some individuals may be eligible for an exemption or reduction of the required REW payment. https://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. When learning about complicated issues like taxes and closing costs, sometimes it is easier to have an expert sit across the kitchen table from you to explain things. Can I search for and view for declarations that I have submitted? Home The register of deeds will compute the tax based on the value of the property as set forth in the declaration of value. Forget your Password? PL 1997, c. 504, 10-12 (AMD). If you add transfer taxes to the initial purchase price, your capital gains will be reduced. None of the information required to create an account is shared; MRS may use the information to contact the municipality if a need arises. Talk with your agent to see if you could be exempt from this tax. All you need is Internet access. Create your account. Transfer Tax. You then may choose to process anotherTAD,Continue to Main MenuorGenerate a PDF. Some individuals may be eligible for an exemption or reduction of the required REW payment. Deeds by parent corporation., 11. 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