§ 26-764. Exemptions from taxes levied by Sections 26-759 and 26-760.

(a)

The term "trustee," as used in this section, means the trustees mentioned in Code of Virginia, § 57-8 and the ecclesiastical officers mentioned in Code of Virginia, § 57-16.

(b)

The taxes levied by Sections 26-759 and 26-760 shall not apply to the following:

(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 the trustee of any church or religious body, 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; to the State; or to any county, city, town, district or other political subdivision of the State;

(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 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 Section 351 of the Internal Revenue Code of 1954, as it exists at the time of the conveyance;

(7)

From a corporation to its stockholders upon complete or partial liquidation of the corporation or partial liquidation of the corporation in a transaction which qualifies for income tax treatment pursuant to Section 331, 332, 333 or 337 of the Internal Revenue Code of 1954, as it exists at the time of liquidation;

(8)

To the surviving or new corporation upon merger or consolidation of two or more corporations, or in a reorganization within the meaning of Section 368(a)(1)(C) and (F) of the Internal Revenue Code of 1954, 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 of 1954, 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;

(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;

(12)

To trustees of a trust, when the grantors in the deed and the beneficiaries of the trust are the same persons; or

(13)

When the grantor is the personal representative of a decedent's estate or trustee under a will or inter vivos trust of which the decedent was the settlor, other than a security trust defined in Code of Virginia, § 55-58.1, and the sole purpose of such transfer 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 settler in accordance with a dispositive provision in the trust instrument.

(c)

The taxes imposed by Sections 26-759 and 26-760 shall not apply to any deed of trust or mortgage given by:

(1)

An incorporated college or other incorporated institution of learning not conducted for profit.

(2)

The trustee of a church or religious body.

(3)

Any nonstock corporation organized exclusively for the purpose of owning or operating a hospital not for pecuniary profit.

(4)

Any local government entity or political subdivision of the State to secure a debt payable to any other local government entity or political subdivision.

(d)

No recordation tax shall be required for the recordation of any deed of gift between an individual grantor and an individual grantee 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 Section 26-761 shall not apply to any lease to the United States; the State; or any county, city, town, district or other political subdivision of the State.

(f)

The taxes imposed by Sections 26-759, 26-760, 26-761 and 26-762 shall not apply to:

(1)

Any deed of gift conveying real estate or any interest therein to The Nature Conservancy; or

(2)

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.

(Code 1993, § 27-251; Code 2004, § 98-491)

State Law reference— Exemptions from state recordation tax, Code of Virginia, § 58.1-811.

(Code 1993, § 27-251; Code 2004, § 98-491)

State law reference

Exemptions from state recordation tax, Code of Virginia, § 58.1-811.