|Organization:||Massachusetts Department of Revenue|
|Referenced Sources:||Massachusetts General Laws|
Sales and Use Tax
August 13, 1982
You inquire whether the Massachusetts deeds excise applies to the deed by which a corporation distributes real estate in kind to its shareholders as part of a complete dissolution of the corporation.
General Laws Chapter 64D, Section 1 provides:
"There shall be levied, collected and paid, for and in respect of the deeds, instruments and writings hereinafter mentioned and described, or for or in respect of the vellum, parchment or paper upon which such deeds, instruments or writings, or any of them, are written or printed, the excise taxes herein specified:- Deed, instrument or writing, whereby any lands, tenements or other realty sold shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers..."
The excise does not apply when the consideration for the interest or property conveyed, exclusive of the value of any lien or encumbrance remaining thereon at the time of sale, is one hundred dollars or less (G.L. c. 64D, s. 1).
Based on the foregoing, it is ruled that the deed by which a corporation distributes real estate in kind to its shareholders as part of a complete dissolution of the corporation is not subject to the deeds excise.
Very truly yours,
/s/L. Joyce Hampers
L. Joyce Hampers
Commissioner of Revenue