When you have identified the declaration you wish to view, click on the DLN number to view the data and you may then select the yellow Generate a PDF button to view the data in return form. The Real Estate Transfer Tax (RETT) database is an electronic database that allows: Electronically filed declarations will be available to municipalities to view and print via the database in 3-5 days from date of filing with the registry. Our office is also staffed to administer and oversee the property tax administration in the unorganized territory. Please contact our office at 207-624-5606 if you have any questions. Since this tax is highly regional, it is essential that both buyers and sellers work with an experienced real estate agent, so both parties understand their financial responsibility regarding this expense. Clevers Concierge Team can help you compare local agents and find the best expert for your search. Partial exemptions must be adjusted by the municipality's certified assessment ratio. Real Estate Withholding (REW). What do I do if my declaration is returned to me by the Registry of Deeds? Real estate that is transferred between spouses in divorce proceedings is also not taxed. PL 2001, c. 559, I15 (AFF). 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 8. I, 15 (AFF). How do I print copies of RETTDs for a particular period? A, 3 (AMD). For more information, see the Property Tax Fairness credit. The rate of tax is $2.20 for each $500 or fractional part of $500 of the value of the property being transferred. Deeds between certain family members., 5. The Real Estate Transfer Tax (RETT) database is an electronic database that allows: 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. The data you enter can be downloaded by the Property Tax Division and you will not have to reenter it on the hard copy or Excel spreadsheet. PL 1975, c. 655, 1 (AMD). The buyer and seller split the tax. This form must be submitted at least 5 business days prior to the closing. 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). TheTransfer Datesearch will identify a declaration using the date of transfer reported on the declaration, not the date recorded by the registry. The bank incurs costs from processing your loan, so you help pay for the cost by paying an application fee. This will enable a download of PDF selected RETTDs. You might not be charged capital gains tax if you lived in the house that you sold more than two years. The database will allow you to view RETT declarations reporting property transfers in your municipality. Access the linkhttps://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. You will see a list of the RETTDs for that period. PL 2017, c. 288, Pt. Deeds by subsidiary corporation., 9. Tax Return Forms Some individuals may be eligible for an exemption or reduction of the required REW payment. All of the above exemptions require completion of an application to the local town office where the property is located. - Definition, Format & Examples, Exigent Circumstances: Definition & Cases, Preliminary Injunction: Definition & Example, What is a Trademark? Create your account. PL 1977, c. 318, 1 (RPR). Electronically filed declarations will be available to municipalities to view and print via the database in 3-5 days from date of filing with the registry. B, 14 (AFF). The Real Estate Transfer Tax (RETT) database is an electronic database that allows: 2. For example, an estate worth $15 million would owe taxes on $3.3 million in 2021 ($15 million minus $11.7 million). You may search byGranteeorGrantor,however this search field may not provide the best results, due to variations in spelling, inclusion or exclusion of middle initial, and other differences with names. Transfer Tax Maine Revenue Services. ], 12. What do I do if my declaration is returned to me by the Registry of Deeds? MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Department of Economic and Community Development. Rest assured thats one expense that wont be a surprise on closing day. The declaration moves to the Registry queue in the county where the property is located. Access the link https://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. 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. 20 Transfer Tax Rates or Email: rett.tax.mrs@maine.gov. MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Real Estate Transfer Tax Database (for municipalities), Real Estate Transfer Tax Database (for originators), Student Loan Repayment Tax Credit (SLRTC). 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. Transfers pursuant to transfer on death deed., [PL 2017, c. 402, Pt. You will also see the declaration in your account queue. The average property tax rate 1.23%. The Director, Real Estate Transfer Tax will play an instrumental role in the development of the Real Estate Transfer Tax section of the Property Tax Consulting Practice. Questions about this Service? Alternate formats can be requested at (207) 626-8475 or via email. Municipal staff and designated individuals must contact the Property Tax Division to request an account. Who has to pay them? Taxes Municipalities to view and print RETT declarations and to update data for the annual turn around document. The Property Tax Division of Maine Revenue Service (MRS) has an online lookup service that allows the public to search for Maine real estate sales as reported on filed Real Estate Transfer Tax Declarations (RETTDs). Can I search for and view for declarations that I have submitted? parent to child, grandparent to grandchild or spouse to spouse). No one wants to be surprised with an expensive tax at closing. Enrolling in a course lets you earn progress by passing quizzes and exams. 5. How do I update the turn around document? For a $150,000 home, the buyer and seller in Maine will both pay $330 for the state transfer tax. The rate of tax is $2.20 for each $500 or fractional part of $500 of the value of the property being transferred. PL 2005, c. 519, SSS2 (AFF). Click on the yellow Create a New RETTD button. You must be logged into your account to create a declaration. Each account requires a unique email address. No. There is no fee to obtain an account or to access and use the database. Once you have located the declaration you wish to view, click on the DLN# to view the data; you may generate a PDF by selecting the Generate a PDF button. PL 2017, c. 402, Pt. Certain classes of property are tax exempt by law. None of the information required to create an account is shared; MRS may use the information to contact the municipality if a need arises. Click on Create an Account, a yellow box on the right side of the screen. This rate is split evenly between the seller and the purchaser. Mortgage deeds, deeds of foreclosure and deeds in lieu of foreclosure., 3. The state valuation is a basis for the allocation of money appropriated for state general purpose aid for education, state revenue sharing, and for county assessments. If all the fields are complete, you will receive an email confirming the declaration has been filed. PL 1981, c. 148, 1-3 (AMD). Fannie Mae and Freddie Mac Exemption from Real Estate Transfer Tax (PDF), 4/8/14; Free Online Real Estate Transfer Tax Filing Service (PDF), 8/8/11; Transfer Tax Law 4641 Definitions PL 1999, c. 638, 44-47 (AMD). Forget your Password? What happens to the declaration after I process it? Some individuals may be eligible for an exemption or reduction of the required REW payment. E, 2 (AMD); PL 2019, c. 417, Pt. 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. Since you paid $2,000 in transfer taxes before, your total taxable capital gains would only be $98,000. PL 1977, c. 394 (AMD). 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). If you have completed all the required fields select the yellow Submit RETTD button. Then assume you're selling the house for $500,000. PL 1993, c. 647, 1-4 (AMD). MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Abatement of Property Taxes - Municipality, Abatement of Property Taxes - Unorganized Territory, Abatement of Property Taxes - Inability to Pay, Hardship, or Poverty, Blind Persons Exemption from Local Property Taxes, Homestead Property Tax Exemption for Cooperative Housing Shareholders, Homestead Property Tax Exemption for Cooperative Housing Corporations, Request for Alternative Sale Process for Foreclosed Homes, Controlling Interest Transfer Tax Return/Declaration of Value, Assigned Rights to a Foreclosed Property Transfer Tax Affidavit, Statement of Total Discontinuation of Vehicle Use, Veteran Exemption for Widow(er), Minor Child, or Widowed Parent of a Veteran, Veteran Exemption for Cooperative Housing Shareholder, Veteran Exemption for Cooperative Housing Corporation, Veteran Exemption for Cooperative Housing Shareholder - Widow(er), Minor Child, or Widowed Parent of a, Property Tax Stabilization Application (the current year application was due December 1). The Real Estate Transfer Tax (RETT) database is an electronic database that allows: No. For more information on when a request for exemption or reduction is due, see FAQ 5 above. 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. Real Estate- The real estate transfer tax is imposed on each deed by which any real property in this state is transferred. Its like a teacher waved a magic wand and did the work for me. A unique email address is required for each account. For more information see36 M.R.S. In addition to government transfers, the following deed conveyances and ownership stake transfers are exempt from the Maine real estate transfer tax: Contrary to popular belief, a deed is not officially transferred between two parties when the transaction closes. https://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. The online RETTD Public Lookup Application allows users to review and download or print PDF versions of RETTDs going . REW Forms REW FAQ Email Questions Contact Information: See 33 M.R.S. Sales tax is 5.5% and local governments do not tack on a local tax. New veteran benefit. What is the Real Estate Transfer Tax database? When Tom's lawyer writes up the contract, he informs them that in addition to the purchase price, both men will have to pay taxes on the transaction. To view PDF or Word documents, you will need the free document readers. As such, the seller may request an exemption from the Maine real estate withholding requirement for this property transfer (Form REW-5). But did you know that a large chunk of your closing cost is a transfer tax? 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. TheTurn Around Documentstab also allows you to update the sales information electronically, so you wont have to wait for the hard copy of the turn around document mailed from MRS in late August or early September. The average homeowner who purchases a $150,000 home will pay approximately $3,700 in closing fees. Am I able to search for a specific RETT declaration on the database? The conveyance of the deed is taxed at a rate of $2.20 for each $500.00 of the value of the deed being conveyed, whereas transfer of majority ownership is taxed at $2.20 for each $500.00 of the share of ownership interest being transferred. 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). The rate of tax is $2.20 for each $500 or fractional part of $500 of the value of the property being transferred. You will receive an email informing you when a declaration is rejected by the Registry. There is no fee to obtain an account or to access and use the database. 6. 36 M.R.S. 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. Back to top 2. The amount you spent on the transfer tax can be subtracted from your profit so that your capital gains tax bill can be reduced. 4641-4641-N The transfer tax is collected on the following two transactions. Transfer Station & Bulky Waste; Taxes/Assessing. 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. Deeds of foreclosure and in lieu of foreclosure., 14. 1. 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. https://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. The amount to be withheld is equal to 2.5% of the sale price. You may search byBook # and Page #, and byMinimum Price and Maximum Priceas reported on the declaration. E, 3 (AMD); PL 2019, c. 417, Pt. interpretation of Maine law to the public. PL 2005, c. 397, C21 (AMD). Sales & Use, Withholding, and Service Provider Tax Registration. The tax is imposed on the grantor, on the grantee. You will receive an email informing you when a declaration is rejected by the Registry. 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. PL 2003, c. 344, D26 (AMD). Deeds of distribution., [PL 2017, c. 402, Pt. In 2022, the Maine Legislature enacted an expanded benefit for veterans through the Property Tax Fairness credit. The Registry of Deeds, Maine Revenue Services and the municipality may access the declaration by entering that DLN into their database. 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. Real Estate Transfer Tax Database (for originators) FAQ. Sales and Use Tax Sales, Use, and Withholding Tax Payment Options Information Click on one of the following yellow buttons on bottom page: Select Save Draft if you wish to save the data entered and return to it as a later time; Select Cancel if you wish to not save what you have entered; Select Continue if you wish to move forward with completing the declaration. 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. Data for this page extracted on 11/21/2022 16:00:03. You can look at the tax form on the State of Maines website, but unless you are an accountant or lawyer, it may not make much sense to you. Fully exemptproperty tax may include real estate or personal property owned by governmental entities, school systems, and other institutions. ], 20. Deeds pursuant to mergers or consolidations., [PL 2009, c. 361, 26 (AMD); PL 2009, c. 361, 37 (AFF). 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. 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. 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. If you add transfer taxes to the initial purchase price, your capital gains will be reduced. 171 lessons. Controlling Interest- A separate Return/Declaration must be filed for each transfer of a controlling interest in the county where real property is located. The declaration moves to the Registry queue in the county where the property is located. To unlock this lesson you must be a Study.com Member. The seller. copyright 2003-2023 Study.com. [PL 2001, c. 559, Pt. 1. The Confirmation page provides you with your account number, the name, address and telephone number of the account holder. Learn about real estate transfer taxes for the state of Maine. 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 . Enter your zip code to see if Clever has a partner agent in your area. BETE does not replace the Business Equipment Tax Reimbursement program (see below). The information will be brought back to you in a pending status; you may choose theCancel,EditorSubmit Formbuttons at the bottom of the page. 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. Forget your Account Number? If you are the seller, you can include the transfer tax in the cost basis of the property. Of course, you want an attorney to look at the necessary documents regarding the homes purchase, and the attorney needs to get paid. PL 1993, c. 398, 4 (AMD). 15) A real estate entity must be liable and have actually paid corporate franchise taxes under the Business Corporation Act of 1983 as a result of a controlling interest transfer in order to claim the exemption under 35 ILCS 200/31-46. Partially exemptproperty tax relates to the following categories: 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. Deeds prior to October 1, 1975., 10. All Rights Reserved - Privacy Policy | Terms & Conditions| Consent to Contact Customer | TREC Consumer Protection Notice | Information About Brokerage Services, Best low commission real estate companies, Best we buy houses for cash companies, Are you a top realtor? The payment is split 50/50 between the parties to the transaction. PL 1995, c. 479, 2 (AFF). ], 21. 19 The current owner and new owner are each responsible for half the tax amount under Maine law. More information and instructions can be found on our forms page, from the link below. Property Tax Forms. Click on the yellow Continue to Log In button then log into your account by entering your Account Number and Password and clicking on the yellow Log In box. B, 14 (AFF). To process the sale, click on theProcessbutton, enter the required fields and then select theSave & Continuebutton at the bottom of the page. - Summary & Concept, Intrusion Detection Systems (IDS) in Data Security, Collision & Broadcast Domains: Definition & Difference, Software Development Tools: Assemblers, Profilers & Editors, What Is a Case Brief? All you need is Internet access. WAC 458-61A valid exemption codes prior to 1/1/2023 valid exemption codes 1/1/2023 and after request a written ruling WAC 458-61A-202 required must Community property agreement or right of survivorship Joint tenants with right of survivorship and remainder interests Life estates and remainder interests Transfer on death deeds previously recorded Select SaveDraftif you wish to save the data entered and return to it as a later time; All fields marked with a red asterisk (*) must be completed. Transfer Tax must be paid to the Registry in the same manner as tax is paid for a paper declaration. 691 - 700-B. This lesson will examine Maine's real estate transfer tax. The Originator has 4 options once the RETT is processed: You may search for declarations you prepared by the DLN number, You may search for declarations you prepared by a particular county or all counties, You may search for declarations you prepared by municipality, You may search for declarations you prepared by street address, You may search for declarations you prepared by last updated date, You may search for declarations you prepared by a number of different status provided on a drop down menu, When you have identified the declaration you wish to view, click on the DLN number to view the data and you may then select the yellow. Change in identity or form of ownership., [PL 2017, c. 402, Pt. What is the Real Estate Transfer Tax database? Another professional that knows about the idiosyncrasies regarding local tax laws is your local real estate agent. 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. Tom asks why and his lawyer explains that the Maine State Tax Assessor charges a real estate 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. You sell a property and make money on the sale. Click on the yellow Submit button. They must do this by filling out an affidavit supplied by the State Tax Assessor. Certain corporate, partnership and limited liability company deeds., 17. Home ], 1. LR 820 An Act to Expand the List of Persons Exempt from the Real Estate Transfer Tax LR 836 An Act to Ensure an Incarcerated Individual's Constitutional Right to Have Access to an Attorney LR 1117 An Act to Amend the Laws Regarding Estate Recovery and Planning for Long-term Care LR 1560 An Act Regarding Conservators' Reports and Accounting 2. Create an account to start this course today. Real Estate Transfer Tax Database (for municipalities) FAQ. Deeds executed by public officials., 13. Your will have the option to Resubmit the declaration with the required information or Delete it. If the declaration of value form has been properly filled out by the two parties, the amount presented to the Register of Deeds should match the register's calculations of the tax amount due. to a transfer of title from one organization exempt from federal taxation under section 501 of the united states internal revenue code of 1986, as amended, to another organization which is also exempt from federal taxation under section 501, when both the transfer organization and the transferee organization are created by or result from the News Releases. Can I search for and view for declarations that I have submitted? f) Forms. Deeds given pursuant to the United States Bankruptcy Code., 15. F, 1 (AFF). I, 15 (AFF). How to Create a Real Estate Transfer Tax declaration? Renewable Energy Investment Exemption-This program exempts renewable energy equipment, such as solar panels, from property tax beginning April 1, 2020. Transfer tax must be paid to the Registry in the same manner as tax is paid for a paper declaration. PL 2001, c. 559, I5-8 (AMD). The buyer. More information and instructions can be found on our forms page, from the link below. PL 1995, c. 462, A69-71 (AMD). The following are exempt from the tax imposed by this chapter: Alternate formats can be requested at (207) 626-8475 or via email. All you need is internet access and an email address. You will also see the declaration in your account queue. PL 2013, c. 521, Pt. Is there a fee to use the RETT database? The Revisor's Office cannot provide legal advice or We offer this because we're confident you're going to love working with a Clever Partner Agent. Maine Non-resident Income Tax Withholding Maine law requires a purchaser of Maine real estate to withhold income tax totaling 2.5 percent of the consideration paid for the property. In 2022, the Maine Legislature enacted an expanded benefit for veterans through the Property Tax Fairness credit. SelectCancelif you wish to not save what you have entered; The Property Tax Division prepares a statistical summary of selected municipal information that must be annually reported to MRS by municipal assessing officials. Limited liability company deeds., [PL 2001, c. 559, Pt. Click onCreate Reportin the yellow box. I, 6 (AMD); PL 2001, c. 559, Pt. Deeds to a trustee, nominee or straw., [PL 1993, c. 647, 2 (AMD); PL 1993, c. 718, Pt. The seller pays 1.25%. Home Business Equipment Tax Exemption-36 M.R.S. Capital gains are taxed same as ordinary income. Property Tax Exemptions. The search features on theTurn Around Documentstab should allow you to locate any declaration recorded at the registry after June 2005. What is the Real Estate Transfer Tax database? Clevers Concierge Team can help you compare local agents and negotiate better rates. Property Tax Relief Programs You will have the option to. Property Tax Most conveyances of real property in Maine are subject to a Real Estate Transfer Tax, but there are exemptions. PL 1997, c. 504, 10-12 (AMD). Is there a fee to use the RETT database? To apply for an exemption or reduction, use Form REW-5. PL 1975, c. 572, 1 (NEW). MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Real Estate Transfer Tax Database (for municipalities), Real Estate Transfer Tax Database (for originators), Student Loan Repayment Tax Credit (SLRTC). Am I able to search for a specific RETT declaration on the database? 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). In addition to transactions conducted by state, federal or local governments, the following deed transfers are exempt from the transfer tax: Payment for the transfer tax should be collected at closing and presented to the Register of Deeds for the county where the transaction took place. Income/Estate Tax Please contact our office at 207-624-5606 if you have any questions. PL 2009, c. 361, 37 (AFF). Governmental entities., 2.