Request By:
Mr. Robert Goodwin, Director
County Audits
Auditor of Public Accounts
Room 170, Capitol Annex
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By William S. Riley, Assistant Attorney General
With your recent letter to the Attorney General, there is enclosed copies of correspondence between the office of the Auditor of Public Accounts and the Estill County Court Clerk pertaining to state tax on deeds and deed transfer tax. With the Estill County Clerk's October 11, 1978, letter is attached a copy of a deed from the United States of America through Farmers Home Administration to Mary A. Rose.
The question is whether a state tax of $1.00 is to be charged on recorded deeds and deed transfer tax of $1.00 per thousand on deeds to which the United States is a party.
In connection with the state tax of $1.00, your atentionis directed to KRS 142.010(1)(b) which provides for a tax of $1.00 on each mortgage, financing statement, security agreement or conveyance of real or personal property. The only exemption is that no tax is to be paid on chattel mortgages, financing agreements or security agreements unless the amount exceeds two hundred dollars ($200).
The answer to the first question is that the state tax of $1.00 should be collected on all deeds including those to which the United States is a party.
In connection with the deed transfer tax, your attention is directed to KRS 142.050(8)(b) which provides that " to (in the event of a deed of gift or deed with nominal consideration) or from the United States of America, this state, any city or county within this state, or any instrumentality, agency, or subdivision thereof; transfer tax does not apply.
The answer to the second part of your inquiry is that any transfer to an individual by the United States or a governmental agency or from an individual to the United States or a governmental agency is exempt from the transfer tax.