This lesson will examine Maine's real estate transfer tax. Deeds of distribution., [PL 2017, c. 402, Pt. ], 8. 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. 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). The seller pays 1.25%. Change in identity or form of ownership., [PL 2017, c. 402, Pt. What is the Real Estate Transfer Tax database? B, 14 (AFF).]. All other trademarks and copyrights are the property of their respective owners. Deeds between certain family members., 5. I, 15 (AFF). To apply for an exemption or reduction, use Form REW-5. Home PL 2017, c. 402, Pt. Certain corporate, partnership and limited liability company deeds., 17. ], 20. 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). 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. What do I do if my declaration is returned to me by the Registry of Deeds? 651 - 684. 6. Eric McConnell is a former property manager and licensed real estate agent who has trained numerous employees on the fundamentals of real estate. All of these fees are somewhat understandable. You then may choose to process anotherTAD,Continue to Main MenuorGenerate a PDF. PL 1993, c. 398, 4 (AMD). 19 The current owner and new owner are each responsible for half the tax amount under Maine law. Clevers Concierge Team can help you compare local agents and negotiate better rates. The following are exempt from the tax imposed by this chapter: Maine has a variety of taxes. The transfer tax is paid, so the ownership of the property is transferred from the seller to the buyer. You must be logged into your account to create a declaration. No. 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. Clevers Concierge Team can help you compare local agents and find the best expert for your search. Transfers pursuant to transfer on death deed., [PL 2017, c. 402, Pt. The Maine real estate transfer tax rate is $2.20 for every . What is the Real Estate Transfer Tax database? All you need is internet access and an email address. 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 buyer and seller split the tax. If you Delete the document, the registry will not be able to record the deed. How to Create a Real Estate Transfer Tax declaration? Deeds by parent corporation., 11. The amount you spent on the transfer tax can be subtracted from your profit so that your capital gains tax bill can be reduced. Access the link https://www1.maine.gov/cgi-bin/online/mrs/rettd/index.pl. All you need is Internet access. The amount to be withheld is equal to 2.5% of the sale price. Log into your municipal account and click onPrint Batchnear the top center of the page. For example, let's say you bought a house for $400,000 and paid $2,000 in transfer taxes. Below we will provide an overview of the Maine real estate transfer tax. Blind Exemption- An individual who is determined to be legally blind receives $4,000. 4641-4641-N The transfer tax is collected on the following two transactions. You will see a list of the RETTDs for that period. E, 4 (NEW); PL 2019, c. 417, Pt. B, 14 (AFF). Property owners would receive an exemption of $25,000. The amount to be withheld is equal to 2.5% of the sale price. Create your account. PL 1981, c. 148, 1-3 (AMD). Houses (1 days ago) Certain transfers are exempt from the transfer tax. There is no fee to obtain an account or to access and use the database. Homestead Exemption Application (PDF) 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. 2022 Clever Real Estate. All you need is internet access. The rate of tax is $2.20 for each $500 or fractional part of $500 of the value of the property being transferred. How do I print copies of RETTDs for a particular period? You may also file the annual turn around document using the database. Alternate formats can be requested at (207) 626-8475 or via email. Call: (207) 624-5606 Can I search for and view for declarations that I have submitted? 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. Both the buyer and seller pay transfer taxes in Maine. The bank incurs costs from processing your loan, so you help pay for the cost by paying an application fee. Most conveyances of real property in Maine are subject to a Real Estate Transfer Tax, but there are exemptions. Real estate that is transferred between spouses in divorce proceedings is also not taxed. There are 21 exemptions to the transfer tax laws as outlined in Chapter 711-A: Real Estate Transfers document. REW Forms REW FAQ Email Questions Contact Information: Please contact our office at 207-624-5606 if you have any questions. The declaration moves to the Registry queue in the county where the property is located. 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. Some individuals may be eligible for an exemption or reduction of the required REW payment. Its like a teacher waved a magic wand and did the work for me. PL 2009, c. 361, 37 (AFF). Certain transfers are exempt from the transfer tax. Once you call the Property Tax Division and provide the necessary information, you will receive an email with a link to the database. C, 106 (AMD). The database will allow you to view RETT declarations reporting property transfers in your municipality. While this benefit is based on the property tax paid by veterans, the benefit is administered through the individual income tax. PL 2005, c. 519, SSS2 (AFF). The average homeowner who purchases a $150,000 home will pay approximately $3,700 in closing fees. 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. 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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. I feel like its a lifeline. 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. PL 2003, c. 344, D26 (AMD). PL 1975, c. 572, 1 (NEW). If you are the seller, you can include the transfer tax in the cost basis of the property. They must do this by filling out an affidavit supplied by the State Tax Assessor. Enter the month, date and year in the begin and end boxes for the RETTDs that you wish to print. The tax rate is $2.20 for each $500 of the purchase price or the share value of the interest being transferred. 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. The Property Tax Division of Maine Revenue Services (MRS) has created a new online lookup service that allows the public to search for Maine real estate sales as reported on filed Real Estate Transfer Tax Declarations (RETTDs). Alternate formats can be requested at (207) 626-8475 or via email. Then assume you're selling the house for $500,000. , For the purposes of this subsection, "servicer" means a person or entity that acts on behalf of the owner of a mortgage debt to provide services related to the mortgage debt, including accepting and crediting payments from the mortgagor, issuing statements and notices to the mortgagor, enforcing rights of the owner of a mortgage debt and initiating and pursuing foreclosure proceedings; 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. 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. All fields marked with a red asterisk (*) must be completed. Click theSelect Allbox or select the single declarations you wish to print. 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