Real Estate Transfer Tax Study

COMMITTEE STUDY REQUEST

JOINT STANDING COMMITTEE ON TAXATION

1. Topic, policy area or nature of the problem to be studied

The Taxation Committee requests permission to study the application of the real estate transfer tax to corporate transfers. Currently sizable of amounts of land may be transferred without being subject to the real estate transfer tax because the transfer occurs through the sale of the corporation that owns the land. No deed is exchanged because the land remains in the ownership of the corporation even though the ownership of the corporation has changed.

2. Description of the tasks to be completed

1. The Committee will investigate the relationship between transfers of land through transfers of corporate ownership and attempt to identify the extent of the practice.

2. The Committee will explore methods of ensuring that transfers of land are taxed equitably.

3. The Committee will recommend the appropriate treatment of land transfers through the transfer of corporate ownership under the real estate transfer tax. The Committee’s recommendation will take the form of Committee reports on LD 1883, An Act to Ensure that Certain Land Transfers Accomplished through Stock Transfers are not Exempt from the Real Estate Transfer Tax, which the Committee has been given permission to carry over.

3. The proposed chair or chairs

The Committee Chairs will chair the study committee

4. Number and identification of the members who will serve on the study

Permission is requested to include all committee members in the study.

5. Proposed study budget and work plan

Standard per diems and expenses for legislators and ancillary expenses for 4 meetings amount to $5,460.

6. Number of and anticipated location of any public meetings to be held

The Committee requests permission for 4 meetings in Augusta

7. Anticipated convening and completion dates of the study

The study will begin by September 1999 and will be completed by December 15, 1999.