                                 CODE OF VIRGINIA

(CONTINGENT EFFECTIVE DATE — SEE NOTE) EXEMPTIONS (§ 58.1-811)

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 &#xA7; 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. 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 &#xA7; 351 of the Internal Revenue Code as it exists at the
   time of the conveyance;

   7. 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 &#xA7; 331, 332, 333, or 337 of the Internal Revenue Code as it
   exists at the time of liquidation;

   8. 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 &#xA7; 368(a)(1)(C) and (F) of the Internal Revenue Code as
   amended;

   9. 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. 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. 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. 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. When the grantor is an organization exempt from taxation under &#xA7;
   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. 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. 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 &#xA7; 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;

   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 (&#xA7; 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 through 12, 14, and 15;

   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 &#xA7; 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 &#xA7; 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 &#xA7; 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 &#xA7;&#xA7; 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 &#8220;trustee&#8221; or &#8220;trustees,&#8221; as used in
subdivisions A 2, B 2, and C 6, include the trustees mentioned in &#xA7; 57-8
and the ecclesiastical officers mentioned in &#xA7; 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 (&#xA7;
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 (&#xA7; 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, &#8220;deed of distribution&#8221;
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&#8217;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) is pursuant to the exercise of the power under the Uniform Trust Decanting
Act (&#xA7; 64.2-779.1 et seq.).

HISTORY: Code 1950, §§ 58-54.1, 58-55.1, 58-58, 58-61, 58-64, 58-64.1; 1952,
cc. 191, 461; 1956, c. 377; 1964, cc. 19, 361; 1970, cc. 313, 420, 772; 1971,
Ex. Sess., c. 60; 1972, cc. 186, 250; 1973, cc. 139, 336; 1975, c. 249; 1976, c.
558; 1977, cc. 398, 418; 1978, c. 714; 1979, cc. 559, 566; 1980, c. 652; 1981,
cc. 267, 443; 1982, cc. 436, 630, 633, 651; 1983, c. 89; 1984, cc. 397, 428,
675; 1985, c. 134; 1988, cc. 429, 738; 1990, c. 289; 1992, cc. 574, 575; 1994,
c. 429; 1995, cc. 127, 303; 1998, c. 333; 1999, c. 400; 2000, cc. 393, 602;
2004, cc. 492, 626; 2005, cc. 93, 928; 2006, c. 922; 2007, cc. 233, 639, 813,
896; 2009, cc. 574, 864, 871; 2013, c. 390; 2014, c. 338; 2016, cc. 37, 662;
2017, cc. 103, 442; 2019, c. 757.