The RETT is a tax on the sale, granting, and transfer of real property or an interest in real property. The statute imposing the tax is found at RSA 78-B and NH Code of Administrative Rules, Rev 800. The tax is imposed on both the buyer and the seller at the rate of $.75 per $100 of the price or consideration for the sale, granting, or transfer.
All contractual transfers are subject to tax unless specifically exempt under RSA 78-B:2. Examples of contractual transfers include:
IRC § 1031 like-kind exchanges and other real estate for real estate swaps.
For most arms length transactions, the tax is based on the actual price or consideration agreed to by the parties.
For transfers of interests in holding companies, the tax is based on the fair market value of the interest attributable to New Hampshire real estate.
Fair market value is the price the property would command in an arm's length transaction between a willing buyer and a willing seller.
The term "related parties" encompasses individuals related by blood or law, individuals and the entities they own, and entities sharing common ownership, directly or indirectly.
A real estate holding company is an organization which is engaged principally in owning, holding, selling, or leasing real estate and which owns real estate or an interest in real estate within the state.
Yes, among the exceptions are:
A non-contractual transfer is essentially a gift and is evidenced by the transferor's donative intent toward the transferee, actual delivery of the property to the transferee, and complete relinquishment of control over the property.
If the manufactured housing is stock-in-trade of a dealer engaged in the business of selling manufactured housing and the unit has not been previously occupied as a dwelling, then the initial sale of the unit by the dealer is not a taxable transfer under the RETT.
All other transfers of manufactured housing are potentially taxable transfers, and the tax is payable as follows:
If the manufactured housing is relocated from NH to another state, the tax is to be paid only by the seller to the register of deeds of the county from which the manufactured housing is relocated.
Maybe. A transfer to a revocable trust is a taxable transfer if the transfer does not satisfy one of the exceptions to the RETT enumerated in RSA 78-B:2. However, if the beneficial interest in the revocable trust is not represented by transferable shares and the trust is created and funded for estate planning purposes as a testamentary substitute, then the measure of the tax will be the minimum tax where:
• The transfer is between the trust and its grantor.
• The transfer is from the trust to the beneficiaries of the trust upon the death of the grantor.
• The transfer is from the trust to a beneficiary who is the natural object of the grantor's bounty.
• The transfer is from a trustee to a successor trustee of the same trust.
A transfer to or from an irrevocable trust is not taxable if the elements of a gift are satisfied or if the transfer satisfies one of the exceptions to the RETT enumerated in RSA 78-B:2. If the transfer does not satisfy the requirements for a gift or an exemption, then the transfer is treated as a contractual transfer.
The buyer and seller buy stamps from the register of deeds in the county where the property is located. The register affixes the stamps to the deed and the deed is recorded. This evidences publicly that tax was paid on the transfer and the amount paid.
Yes, a Declaration of Consideration by the Purchaser (Form CD-57-P or Form CD-57-HC-P) and a Declaration of Consideration by the Seller (Form CD-57-S or Form CD-57-HC-S), as well as an Inventory of Property Transfer (Form PA-34) must be filed with the Department within 30 days after the recording of the deed. These forms are available at each county register of deeds office, on the Department's website or by calling the Forms Line at (603) 230-5001.
For more information call Central Tax Services at (603) 230-5920 or write the Audit Division, PO Box 457, Concord, NH 03302-0457.
New Hampshire Department of Revenue Administration
Governor Hugh Gallen State Office Park
109 Pleasant Street (Medical & Surgical Building), Concord NH
(603) 230-5000 |
TDD Access Relay NH: 1-800-735-2964 |
fax: (603) 230-5945
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