3-3-6: EXEMPTIONS:
The real estate transfer tax imposed by this chapter shall not apply to:
A. Any transfer where there is no consideration or when the consideration is five hundred dollars ($500.00) or less.
B. Any transfer wherein the United States or any agency or instrumentality thereof, the state, any county, city and county, municipality, district or other political subdivision of this state is the grantee.
C. A gift of real property, where there is no consideration other than love and affection or charitable donation.
D. Any transfer between the same parties creating or terminating a joint tenancy in real property; however, if additional consideration or value is paid in connection with such creation or termination, the tax shall apply and be based upon such additional consideration.
E. The transfer of title or change of interest in real property by reason of death, pursuant to a will, the law of descent and distribution, or otherwise.
F. Transfers made pursuant to reorganization, merger or consolidation of corporations, or by a subsidiary to a parent corporation for no consideration other than cancellation or surrender of the subsidiary's stock, or transfers made to a corporation, partnership, limited partnership, joint venture, business trust or other association or organization if that association or organization is owned by the persons by whom such transfer was made, if such owners have the same relative interests in said association or organization as they had in the real property immediately prior to said transfer and there is no consideration other than their respective interests in the new association or organization.
G. Transfer to make effective any plan confirmed or ordered by a court of competent jurisdiction under the bankruptcy code or in an equity receivership proceeding.
H. Any transfer made and delivered without consideration for the purpose of confirming, correcting, modifying or supplementing a transfer previously recorded; making minor boundary adjustments; removing clouds of titles; or granting rights-of-way, easements or licenses.
I. Any decree or order of a court of record quieting, determining or vesting title, including a final order awarding title pursuant to a condemnation proceeding.
J. Any transfer between spouses or former spouses made pursuant to a separation agreement, decree of legal separation or dissolution of marriage.
K. Any transfer of cemetery lots.
L. Any lease of real property (or assignment or transfer of any interest in any such lease), provided the terms and conditions of such lease do not constitute a taxable lease of the property.
M. Any mineral transfer or royalty transfer.
N. Transfer to secure a debt or other obligation, or releases of real property which is security for a debt or other obligation.
O. Any transfer by deed in lieu of foreclosure; provided, that:
1. Such transfer shall be exempt only if the grantee in such deed is the person holding the obligation or instrument which is being canceled, in whole or in part, in exchange for the transfer; and
2. Such transfer shall be exempt only to the extent of the amount of the obligation which is being canceled, in whole or in part, in exchange for the transfer.
P. Any transfer by sheriff's deed, trustee's deed or other conveyance of real property in connection with an execution sale; foreclosure sale by the public trustee under a power of sale; court decree foreclosing a mortgage, deed of trust or other security instrument; or court decree of lien foreclosure; provided, that:
1. Such transfer shall be exempt only if the grantee is the person holding the obligation or instrument upon which the proceeding is based; and
2. Such transfer shall be exempt only to the extent of the obligation to be satisfied at the execution or foreclosure sale and any obligations to prior lienholders paid from the sale.
Q. Any executory contract for the sale of real property of less than three (3) years' duration under which the vendee is entitled to or does take possession thereof without acquiring title thereto or any assignment or cancellation of any such contract; provided, that the tax imposed by this chapter shall be paid when the vendee acquires title to the property.
R. Any transfer that is made pursuant to a valid and legally enforceable contract for the sale entered into between the seller and purchaser prior to the date of adoption of the ordinance codified in this chapter, pursuant to which transaction the deed or instrument of conveyance is executed and recorded on or before January 1, 1981.
S. Any transfer that is made pursuant to a valid and legally enforceable presale contract:
1. Entered into between a seller and purchaser prior to the date of adoption of the ordinance codified in this chapter;
2. Pursuant to which transaction the deed or instrument of conveyance is executed and recorded on or before January 1, 1981. A "presale contract" is defined as a valid and legally enforceable contract for the sale of real property which has been signed prior to the commencement of construction of improvements thereon, to be closed following completion of the improvements and pursuant to which contract seller is obliged to construct the improvements to the property after the contract is signed and prior to the closing date of the contract.
T. Any sale or conveyance of real property or improvements for the purpose of constructing, or providing low or moderate priced housing units for sale or lease to low or moderate income persons; provided, that the parties to the transaction shall apply to the town manager for the exemption prior to its being allowed, and the parties shall agree to appropriately restrict the future use of the property to low and moderate priced housing units by recorded agreement, deed, restrictions, covenants, declaration or similar instrument as may be required by the town council. (Ord. 30, Series 2021)