All of the above exemptions require completion of an application to the local town office where the property is located. What is the Real Estate Transfer Tax database? 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. SelectCancelif you wish to not save what you have entered; Log into your municipal account and click onPrint Batchnear the top center of the page. No one wants to be surprised with an expensive tax at closing. 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 1977, c. 394 (AMD). Deeds executed by public officials., 13. interpretation of Maine law to the public. This form must be submitted at least 5 business days prior to the closing. Property Tax Exemptions. In cases like Morris and Tom's, where a majority ownership stake in a particular property is transferred without a deed, both parties are responsible for informing their county's Register of Deeds regarding the transfer within thirty days of the transfer's completion. The bank incurs costs from processing your loan, so you help pay for the cost by paying an application fee. 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 In 2022, the Maine Legislature enacted an expanded benefit for veterans through the Property Tax Fairness credit. After review, the Registrar will either accept the declaration or reject the declaration back to the preparer. The tax is imposed on the grantor, on the grantee. 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. To process the sale, click on theProcessbutton, enter the required fields and then select theSave & Continuebutton at the bottom of the page. Most conveyances of real property in Maine are subject to a Real Estate Transfer Tax, but there are exemptions. The amount you spent on the transfer tax can be subtracted from your profit so that your capital gains tax bill can be reduced. 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). How do I update the turn around document? 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. Click onCreate Reportin the yellow box. Once these fields are filled, select. 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. The Confirmation page provides you with your account number, the name, address and telephone number of the account holder. What happens to the declaration after I process it? While property taxes can help relieve your tax bill at the end of the year, transfer taxes are not tax deductible. 8. Once you call the Property Tax Division and provide the necessary information, you will receive an email with a link to the database. 2022 Clever Real Estate. MEETRS File Upload Specifications & Instructions, Alphabetical Listing by Tax Type or Program Name, Employer Withholding (Wages, pensions, Backup) (941ME and ME UC-1), Pass-through Entity Withholding (941P-ME) and Returns. Are you wondering if you meet any of the other 19 exemptions listed in the document? To apply for an exemption or reduction, use Form REW-5. [PL 2001, c. 559, Pt. The Property Tax Division is divided into two units: Municipal Servicesand theUnorganized Territory. Alternate formats can be requested at (207) 626-8475 or via email. Who has to pay them? The average homeowner who purchases a $150,000 home will pay approximately $3,700 in closing fees. The declaration moves to the Registry queue in the county where the property is located. Homestead Exemption Application (PDF) For the applicable interest rate, contact your municipality or the Property Tax Division for property in the unorganized territory. 4. Renewable Energy Investment Exemption-This program exempts renewable energy equipment, such as solar panels, from property tax beginning April 1, 2020. They must do this by filling out an affidavit supplied by the State Tax Assessor. In Maine, spouses, parents, children, grandparents, and grandchildren can transfer ownership to and from each other without having to pay a transfer tax. Deeds to charitable conservation organizations., 18. Click onSearch. Deeds prior to October 1, 1975., 10. 2. B, 14 (AFF). Income/Estate Tax 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. PL 1993, c. 718, B10-12 (AMD). PL 1985, c. 691, 32 (AMD). The loan company financing the transaction. There is no fee to obtain an account or to access and use the database. None of the information required to create an account is shared; MRS may use the information to contact the municipality if a need arises. While this benefit is based on the property tax paid by veterans, the benefit is administered through the individual income tax. 6. PL 1993, c. 680, A31 (AMD). All fields marked with a red asterisk (*) must be completed. If you Delete the document, the registry will not be able to record the deed. What do I do if my declaration us returned to me by the Registry of Deeds? Create an account to start this course today. REW Forms REW FAQ Email Questions Contact Information: You may search by Book # and Page #, and by Minimum Price and Maximum Price as reported on the declaration. Property owners would receive an exemption of $25,000. The tax rate is $2.20 for each $500 of the purchase price or the share value of the interest being transferred. Sales tax is 5.5% and local governments do not tack on a local tax. See 33 M.R.S. Eric McConnell is a former property manager and licensed real estate agent who has trained numerous employees on the fundamentals of real estate. Both the buyer and seller pay transfer taxes in Maine. You must be logged into your account to create a declaration. The tax is imposed on the grantor, on the grantee. PL 2019, c. 417, Pt. 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. Governmental entities., 2. Controlling interests., [PL 2017, c. 402, Pt. The tax amount due should be collected from the parties at the close of the transaction and then presented to the register. TheTransfer Datesearch will identify a declaration using the date of transfer reported on the declaration, not the date recorded by the registry. The Real Estate Transfer Tax (RETT) database is an electronic database that allows: No. You may only view those declarations reporting property in your municipality. I feel like its a lifeline. PL 2013, c. 521, Pt. 5. We offer this because we're confident you're going to love working with a Clever Partner Agent. 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). PL 2017, c. 288, Pt. For more information, see the Property Tax Fairness credit. If a conveyance is exempt, the exemption must be clearly stated on the face of the deed. - Definition, Format & Examples, Exigent Circumstances: Definition & Cases, Preliminary Injunction: Definition & Example, What is a Trademark? For more information see36 M.R.S. Municipal staff and designated individuals must contact the Property Tax Division to request an account. FAQ There is no fee to obtain an account or to access and use the database. 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). There are 21 exemptions to the transfer tax laws as outlined in Chapter 711-A: Real Estate Transfers document. Click on Create an Account, a yellow box on the right side of the screen. A wealth of information detailing valuations and exemptions by selected categories, assessment ratios and tax rates, on a town-by-town basis, is compiled. More information and instructions can be found on our forms page, from the link below. Click theSelect Allbox or select the single declarations you wish to print. 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. Here are the different taxes and the related rates: Income tax rates from a low of 5.8% to 7.15%. f) Forms. copyright 2003-2023 Study.com. 54 The purchaser must transmit the withheld amount to the State Tax Assessor within 30 days. PL 2017, c. 402, Pt. I, 5 (AMD); PL 2001, c. 559, Pt. Exemption claims may require additional information to support the claim for exemption, and must be delivered to the Assessor's office no later than April 1. 4641-4641-N The transfer tax is collected on the following two transactions. 651 - 684. Property owners would receive an exemption of $25,000. The buyer of the property will withhold and remit the Real Estate Withholding money to Maine Revenue Services using form REW-1. The Property Tax Division prepares a statistical summary of selected municipal information that must be annually reported to MRS by municipal assessing officials. Access the linkhttps://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. Change in identity or form of ownership., [PL 2017, c. 402, Pt. You may be charged a capital gains tax on the amount of money that you made. How to Create a Real Estate Tax declaration? B, 10 (AMD). No. Home PL 1995, c. 479, 1 (AMD). 36 M.R.S. All of these fees are somewhat understandable. 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. C, 106 (AMD). . Controlling Interest- A separate Return/Declaration must be filed for each transfer of a controlling interest in the county where real property is located. 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