Bill Text: VA HB568 | 2024 | Regular Session | Enrolled
Bill Title: Tax exemptions; Confederacy organizations.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Vetoed) 2024-05-17 - Governor: Vetoed by Governor [HB568 Detail]
Download: Virginia-2024-HB568-Enrolled.html
Be it enacted by the General Assembly of Virginia:
1. That §§58.1-811, as it is currently effective and as it may become effective, and 58.1-3607 of the Code of Virginia are amended and reenacted as follows:
§58.1-811. (Contingent expiration date, see Acts 2013, c. 766, cl. 14) Exemptions.
A. The taxes imposed by §§58.1-801 and 58.1-807 shall not apply to any deed conveying real estate or lease of real estate:
1. To an incorporated college or other incorporated institution of learning not conducted for profit, where such real estate is intended to be used for educational purposes and not as a source of revenue or profit;
2. To an incorporated church or religious body or to the trustee or trustees of any church or religious body, or a corporation mentioned in §57-16.1, where such real estate is intended to be used exclusively for religious purposes, or for the residence of the minister of any such church or religious body;
3. To the United States, the Commonwealth, or to any county, city, town, district, or other political subdivision of the Commonwealth;
4. To the Virginia Division of the United Daughters of the
Confederacy;
5. To any nonstock corporation organized exclusively
for the purpose of owning or operating a hospital or hospitals not for
pecuniary profit;
6. 5. To a corporation upon its organization by
persons in control of the corporation in a transaction which qualifies for
nonrecognition of gain or loss pursuant to §351 of the Internal Revenue Code
as it exists at the time of the conveyance;
7. 6. From a corporation to its stockholders
upon complete or partial liquidation of the corporation in a transaction which
qualifies for income tax treatment pursuant to §331, 332, 333, or 337 of the
Internal Revenue Code as it exists at the time of liquidation;
8. 7. To the surviving or new corporation,
partnership, limited partnership, business trust, or limited liability company
upon a merger or consolidation to which two or more such entities are parties,
or in a reorganization within the meaning of §368(a)(1)(C) and (F) of the
Internal Revenue Code as amended;
9. 8. To a subsidiary corporation from its
parent corporation, or from a subsidiary corporation to a parent corporation,
if the transaction qualifies for nonrecognition of gain or loss under the
Internal Revenue Code as amended;
10. 9. To a partnership or limited liability
company, when the grantors are entitled to receive not less than 50 percent of
the profits and surplus of such partnership or limited liability company,
provided that the transfer to a limited liability company is not a precursor to
a transfer of control of the assets of the company to avoid recordation taxes;
11. 10. From a partnership or limited liability
company, when the grantees are entitled to receive not less than 50 percent of
the profits and surplus of such partnership or limited liability company,
provided that the transfer from a limited liability company is not subsequent
to a transfer of control of the assets of the company to avoid recordation
taxes;
12. 11. To trustees of a revocable inter vivos
trust, when the grantors in the deed and the beneficiaries of the trust are the
same persons, regardless of whether other beneficiaries may also be named in
the trust instrument, when no consideration has passed between the grantor and
the beneficiaries;
13. 12. When the grantor is an organization
exempt from taxation under §501(c)(3) of the Internal Revenue Code that is
organized and operated primarily to acquire land and purchase materials to
erect or rehabilitate low-cost homes on such land, which homes are sold at cost
to persons who otherwise would be unable to afford to buy a home through
conventional means;
14. 13. When it is a deed of partition, or any
combination of deeds simultaneously executed and having the effect of a deed of
partition, among joint tenants, tenants in common, or coparceners; or
15. 14. When it is a deed transferring property
pursuant to a decree of divorce or of separate maintenance or pursuant to a
written instrument incident to such divorce or separation.
B. The taxes imposed by §§58.1-803 and 58.1-804 shall not apply to any deed of trust or mortgage:
1. Given by an incorporated college or other incorporated institution of learning not conducted for profit;
2. Given by the trustee or trustees of a church or religious body or given by an incorporated church or religious body, or given by a corporation mentioned in §57-16.1;
3. Given by any nonstock corporation organized exclusively for the purpose of owning and/or operating a hospital or hospitals not for pecuniary profit;
4. Given by any local governmental entity or political subdivision of the Commonwealth to secure a debt payable to any other local governmental entity or political subdivision;
5. Securing a loan made by an organization described in
subdivision A 13 12;
6. Securing a loan made by a county, city, or town, or an agency of such a locality, to a borrower whose household income does not exceed 80 percent of the area median household income established by the U.S. Department of Housing and Urban Development, for the purpose of erecting or rehabilitating a home for such borrower, including the purchase of land for such home; or
7. Given by any entity organized pursuant to Chapter 9.1 (§ 56-231.15 et seq.) of Title 56.
C. The tax imposed by §58.1-802 and the fee imposed by §§ 58.1-802.3, 58.1-802.4, and 58.1-802.5 shall not apply to any:
1. Transaction described in subdivisions A 6 5
through 12 11, 14 13, and 15 14;
2. Instrument or writing given to secure a debt;
3. Deed conveying real estate from an incorporated college or other incorporated institution of learning not conducted for profit;
4. Deed conveying real estate from the United States, the Commonwealth or any county, city, town, district, or other political subdivision thereof;
5. Conveyance of real estate to the Commonwealth or any county, city, town, district, or other political subdivision thereof, if such political unit is required by law to reimburse the parties taxable pursuant to §58.1-802 or subject to the fee under §58.1-802.3 or 58.1-802.5; or
6. Deed conveying real estate from the trustee or trustees of a church or religious body or from an incorporated church or religious body, or from a corporation mentioned in §57-16.1.
D. No recordation tax shall be required for the recordation of any deed of gift between a grantor or grantors and a grantee or grantees when no consideration has passed between the parties. Such deed shall state therein that it is a deed of gift.
E. The tax imposed by §58.1-807 shall not apply to any lease to the United States, the Commonwealth, or any county, city, town, district, or other political subdivision of the Commonwealth.
F. The taxes and fees imposed by §§58.1-801, 58.1-802, 58.1-802.3, 58.1-802.5, 58.1-807, 58.1-808, and 58.1-814 shall not apply to (i) any deed of gift conveying real estate or any interest therein to The Nature Conservancy or (ii) any lease of real property or any interest therein to The Nature Conservancy, where such deed of gift or lease of real estate is intended to be used exclusively for the purpose of preserving wilderness, natural, or open space areas.
G. The words "trustee" or "trustees," as used in subdivisions A 2, B 2, and C 6, include the trustees mentioned in § 57-8 and the ecclesiastical officers mentioned in §57-16.
H. No recordation tax levied pursuant to this chapter shall be levied on the release of a contractual right, if the release is contained within a single deed that performs more than one function, and at least one of the other functions performed by the deed is subject to the recordation tax.
I. No recordation tax levied pursuant to this chapter shall be levied on a deed, lease, easement, release, or other document recorded in connection with a concession pursuant to the Public-Private Transportation Act of 1995 (§33.2-1800 et seq.) or similar federal law.
J. No recordation tax shall be required for the recordation of any transfer on death deed or any revocation of transfer on death deed made pursuant to the Uniform Real Property Transfer on Death Act (§64.2-621 et seq.) when no consideration has passed between the parties.
K. No recordation tax levied pursuant to this chapter shall be
required for the recordation of any deed of distribution when no consideration
has passed between the parties. Such deed shall state therein on the front page
that it is a deed of distribution. As used in this subsection, "deed of
distribution" means a deed conveying property from an estate or trust (i)
to the original beneficiaries of a trust from the trustees holding title under
a deed in trust;, (ii) the purpose of which is to comply with a devise
or bequest in the decedent's will or to transfer title to one or more
beneficiaries after the death of the settlor in accordance with a dispositive
provision in the trust instrument;, (iii) that carries out the
exercise of a power of appointment;, or (iv) that is
pursuant to the exercise of the power under the Uniform Trust Decanting Act (§
64.2-779.1 et seq.).
§58.1-811. (Contingent effective date, see Acts 2013, c. 766, cl. 14) Exemptions.
A. The taxes imposed by §§58.1-801 and 58.1-807 shall not apply to any deed conveying real estate or lease of real estate:
1. To an incorporated college or other incorporated institution of learning not conducted for profit, where such real estate is intended to be used for educational purposes and not as a source of revenue or profit;
2. To an incorporated church or religious body or to the trustee or trustees of any church or religious body, or a corporation mentioned in §57-16.1, where such real estate is intended to be used exclusively for religious purposes, or for the residence of the minister of any such church or religious body;
3. To the United States, the Commonwealth, or to any county, city, town, district, or other political subdivision of the Commonwealth;
4. To the Virginia Division of the United Daughters of the
Confederacy;
5. To any nonstock corporation organized exclusively
for the purpose of owning or operating a hospital or hospitals not for
pecuniary profit;
6. 5. To a corporation upon its organization by
persons in control of the corporation in a transaction which qualifies for nonrecognition
of gain or loss pursuant to §351 of the Internal Revenue Code as it exists at
the time of the conveyance;
7. 6. From a corporation to its stockholders
upon complete or partial liquidation of the corporation in a transaction which
qualifies for income tax treatment pursuant to §331, 332, 333, or 337 of the
Internal Revenue Code as it exists at the time of liquidation;
8. 7. To the surviving or new corporation,
partnership, limited partnership, business trust, or limited liability company
upon a merger or consolidation to which two or more such entities are parties,
or in a reorganization within the meaning of §368(a)(1)(C) and (F) of the
Internal Revenue Code as amended;
9. 8. To a subsidiary corporation from its
parent corporation, or from a subsidiary corporation to a parent corporation,
if the transaction qualifies for nonrecognition of gain or loss under the
Internal Revenue Code as amended;
10. 9. To a partnership or limited liability
company, when the grantors are entitled to receive not less than 50 percent of
the profits and surplus of such partnership or limited liability company,
provided that the transfer to a limited liability company is not a precursor to
a transfer of control of the assets of the company to avoid recordation taxes;
11. 10. From a partnership or limited liability
company, when the grantees are entitled to receive not less than 50 percent of
the profits and surplus of such partnership or limited liability company,
provided that the transfer from a limited liability company is not subsequent
to a transfer of control of the assets of the company to avoid recordation
taxes;
12. 11. To trustees of a revocable inter vivos
trust, when the grantors in the deed and the beneficiaries of the trust are the
same persons, regardless of whether other beneficiaries may also be named in
the trust instrument, when no consideration has passed between the grantor and
the beneficiaries;
13. 12. When the grantor is an organization
exempt from taxation under §501(c)(3) of the Internal Revenue Code that is
organized and operated primarily to acquire land and purchase materials to
erect or rehabilitate low-cost homes on such land, which homes are sold at cost
to persons who otherwise would be unable to afford to buy a home through
conventional means;
14. 13. Pursuant to any deed of partition, or
any combination of deeds simultaneously executed and having the effect of a
deed of partition, among joint tenants, tenants in common, or coparceners; or
15. 14. Pursuant to any deed transferring property
pursuant to a decree of divorce or of separate maintenance or pursuant to a
written instrument incident to such divorce or separation.
B. The taxes imposed by §§58.1-803 and 58.1-804 shall not apply to any deed of trust or mortgage:
1. Given by an incorporated college or other incorporated institution of learning not conducted for profit;
2. Given by the trustee or trustees of a church or religious body or given by an incorporated church or religious body, or given by a corporation mentioned in §57-16.1;
3. Given by any nonstock corporation organized exclusively for the purpose of owning and/or operating a hospital or hospitals not for pecuniary profit;
4. Given by any local governmental entity or political subdivision of the Commonwealth to secure a debt payable to any other local governmental entity or political subdivision;
5. Securing a loan made by an organization described in
subdivision A 13 12;
6. Securing a loan made by a county, city, or town, or an agency of such a locality, to a borrower whose household income does not exceed 80 percent of the area median household income established by the U.S. Department of Housing and Urban Development, for the purpose of erecting or rehabilitating a home for such borrower, including the purchase of land for such home; or
7. Given by any entity organized pursuant to Chapter 9.1 (§ 56-231.15 et seq.) of Title 56.
C. The tax imposed by §58.1-802 shall not apply to any:
1. Transaction described in subdivisions A 6 5
through 12 11, 14 13, and 15 14;
2. Instrument or writing given to secure a debt;
3. Deed conveying real estate from an incorporated college or other incorporated institution of learning not conducted for profit;
4. Deed conveying real estate from the United States, the Commonwealth or any county, city, town, district, or other political subdivision thereof;
5. Conveyance of real estate to the Commonwealth or any county, city, town, district, or other political subdivision thereof, if such political unit is required by law to reimburse the parties taxable pursuant to §58.1-802; or
6. Deed conveying real estate from the trustee or trustees of a church or religious body or from an incorporated church or religious body, or from a corporation mentioned in §57-16.1.
D. No recordation tax shall be required for the recordation of any deed of gift between a grantor or grantors and a grantee or grantees when no consideration has passed between the parties. Such deed shall state therein that it is a deed of gift.
E. The tax imposed by §58.1-807 shall not apply to any lease to the United States, the Commonwealth, or any county, city, town, district, or other political subdivision of the Commonwealth.
F. The taxes and fees imposed by §§58.1-801, 58.1-802, 58.1-807, 58.1-808, and 58.1-814 shall not apply to (i) any deed of gift conveying real estate or any interest therein to The Nature Conservancy or (ii) any lease of real property or any interest therein to The Nature Conservancy, where such deed of gift or lease of real estate is intended to be used exclusively for the purpose of preserving wilderness, natural, or open space areas.
G. The words "trustee" or "trustees," as used in subdivisions A 2, B 2, and C 6, include the trustees mentioned in § 57-8 and the ecclesiastical officers mentioned in §57-16.
H. No recordation tax levied pursuant to this chapter shall be levied on the release of a contractual right, if the release is contained within a single deed that performs more than one function, and at least one of the other functions performed by the deed is subject to the recordation tax.
I. No recordation tax levied pursuant to this chapter shall be levied on a deed, lease, easement, release, or other document recorded in connection with a concession pursuant to the Public-Private Transportation Act of 1995 (§33.2-1800 et seq.) or similar federal law.
J. No recordation tax shall be required for the recordation of any transfer on death deed or any revocation of transfer on death deed made pursuant to the Uniform Real Property Transfer on Death Act (§64.2-621 et seq.) when no consideration has passed between the parties.
K. No recordation tax levied pursuant to this chapter shall be
required for the recordation of any deed of distribution when no consideration
has passed between the parties. Such deed shall state therein on the front page
that it is a deed of distribution. As used in this subsection, "deed of
distribution" means a deed conveying property from an estate or trust (i)
to the original beneficiaries of a trust from the trustees holding title under
a deed in trust;, (ii) the purpose of which is to comply with a devise
or bequest in the decedent's will or to transfer title to one or more
beneficiaries after the death of the settlor in accordance with a dispositive
provision in the trust instrument;, (iii) that carries out the
exercise of a power of appointment;, or (iv) that is
pursuant to the exercise of the power under the Uniform Trust Decanting Act (§
64.2-779.1 et seq.).
§58.1-3607. Property exempt from taxation by designation.
A. Pursuant to the authority granted in Article X, Section 6 (a) (6) of the Constitution of Virginia to exempt property from taxation by designation, and notwithstanding the provisions of §58.1-3651, the real and personal property of the following organizations, corporations, and associations shall be exempt from taxation:
1. Property of the Association for the Preservation of
Virginia Antiquities, the Association for the Preservation of Petersburg
Antiquities, Historic Richmond Foundation, the Confederate Memorial Literary
Society, the Mount Vernon Ladies' Association of the Union, the Virginia
Historical Society, the Thomas Jefferson Memorial Foundation, Incorporated, the
Patrick Henry Memorial Foundation, Incorporated, the Stonewall Jackson
Memorial, Incorporated, George Washington's Fredericksburg Foundation, Home
Demonstration Clubs, 4-H Clubs, the Future Farmers of America, Incorporated,
the posts of the American Legion, posts of United Spanish War Veterans,
branches of the Fleet Reserve Association, posts of Veterans of Foreign Wars,
posts of the Disabled American Veterans, Veterans of World War I, USA,
Incorporated, the Society of the Cincinnati in the State of Virginia, the
Manassas Battlefield Confederate Park, Incorporated, the Robert E. Lee Memorial
Foundation, Incorporated, the Virginia Division of the United Daughters of
the Confederacy, the General Organization of the United Daughters of the
Confederacy, the Memorial Foundation of the Germanna Colonies in Virginia,
Incorporated, the Lynchburg Fine Arts Centers, Incorporated, Norfolk Historic
Foundation, National Trust for Historic Preservation in the United States,
Historic Alexandria Foundation, and the Lynchburg Historical Foundation.
2. Property of Colonial Williamsburg, Incorporated, used for museum, historical, municipal, benevolent or charitable purposes, as long as such corporation continues to be organized and operated not for profit.
3. Property owned by the Virginia Home (previously Virginia Home for Incurables), incorporated by Chapter 533 of the Acts of Assembly of 1893-4, approved March 1, 1894.
4. The property owned by the Waterford Foundation, Incorporated, so long as it continues to be a nonprofit corporation to encourage and assist in restoration work in Waterford and to stimulate the revival of local arts and crafts.
5. Property of Historic Fredericksburg, Incorporated, and of the Clarke County Historical Association, used by such organizations for historical, benevolent or charitable purposes, as long as such corporation continues to be organized and operated not for profit.
6. Property of the Westmoreland Davis Foundation, Inc., so long as it continues to be a nonprofit corporation.
7. Property owned by the Women's Home Incorporated, in Arlington County and used for the rehabilitation of women with substance abuse, so long as it continues to be operated not for profit.
B. Property designated to be exempt from taxation in subsection A which was exempt on July 1, 1971, shall continue to be exempt under the rules of statutory construction applicable to exempt property prior to such date.
2. That §§58.1-3650.31 and 58.1-3650.716 of the Code of Virginia are repealed.
