GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1235

Short Title:  Deed Stamp Tax Changes.	(Public)
─────────────────────────────────────── 
Sponsors: Representative Redwine.
─────────────────────────────────────── 
Referred to:  Finance.
─────────────────────────────────────── 

May 10, 1991

A BILL TO BE ENTITLED
AN ACT TO AMEND THE EXCISE STAMP TAX ON CONVEYANCES.
The General Assembly of North Carolina enacts:
Section 1.  Article 8E of Chapter 105 of the General Statutes reads as rewritten:
"ARTICLE 8E.
"Excise Stamp Tax on Conveyances.
"§ 105-228.28.  Scope.
The provisions of this Article apply to every person, firm, corporation, association, society or organization conveying an interest in real estate located in North Carolina other than a governmental unit and instrumentalities thereof.
"§ 105-228.29.  Conveyances excluded.
The provisions of this Article do not apply to transfers of an interest in real estate by operation of law, by lease for a term of years, by or pursuant to the provisions of a will, by intestacy, by gift, by merger or consolidation, or by instruments securing indebtedness, or to transfers in which no consideration in property or money is due or paid by the transferee to transferor.
"§ 105-228.30.  Imposition of excise stamp tax.
There is hereby levied an excise tax on each deed, instrument or writing by which an interest in real property is granted, assigned or otherwise conveyed to, or vested in, another person.  The tax shall be at the rate of one dollar ($1.00) on each five  hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest or property conveyed, less the value of any lien or encumbrance that existed before the transfer and is assumed by the transferee.  The tax shall be paid by the transferor or transferors to the county in which the real estate is situated prior to recording the instrument of conveyance; provided that, if the instrument transfers any parcel of real estate lying in two or more counties, the tax shall be paid to the county wherein the  greater part of the real estate with respect to value lies. Except as  otherwise hereinafter provided, the proceeds of the tax herein levied  shall be retained by the county and placed in its general funds.
"§ 105-228.31.  Issuance of tax stamp.
The Secretary of Revenue shall furnish to the register of deeds of each county tax stamps to be issued upon payment of the tax herein imposed. Counties shall pay to the Secretary a reasonable charge for the stamps to cover the cost of printing and handling.  The tax stamps shall be uniform as to size and design and shall be in such form as determined by the Secretary of Revenue and shall be valid until cancelled.
The register of deeds of any county is authorized to affix stamps by meter or other similar device in accordance with procedures established by the Secretary of Revenue. Stamps affixed by such devices shall be uniform as to size and design and shall be in such form as determined by the Secretary and cancellation as provided by this Article is not required. 
"§ 105-228.32.  Duties of register of deeds; duty of party presenting instrument for registration.
The register of deeds of each county shall obtain from the Secretary of Revenue and keep on hand an adequate supply of excise tax stamps. The register of deeds shall keep records and account for the stamps in accordance with procedures established by the Secretary of Revenue for the control, distribution and sale of the stamps and for the accounting for proceeds of their sale consistent with this Article. It is the duty of the party presenting the instrument for registration to see that the correct amount of stamps is affixed to the face of the instrument prior to recording the instrument in the office of the register of deeds.  The register of deeds may not accept for recordation an instrument securing indebtedness unless the instrument bears the correct amount of stamps based on the amount of the debt, as stated in the instrument.  The register of deeds shall cancel the stamps prior to recording by writing the date of filing on the face of the stamps.
"§ 105-228.33.  Taxes recoverable by action.
Upon the failure to pay the taxes imposed by this Article, they may be recovered in an action brought by the county attorney in the name of the county in the superior court of that county when the taxes remain unpaid for a period of 30 days after demand has been made by the register of deeds on behalf of the county.  In such actions, costs of court shall include a fee to the county of one hundred dollars ($100.00) for expense of collection.
"§ 105-228.34.  Willful failure to pay tax.
Any transferor or agent of transferor of real estate willfully and knowingly failing to pay the correct amount of the tax imposed by this Article or any person aiding, abetting, or directing any other person to willfully and knowingly fail to pay the correct amount of such tax shall be guilty of a misdemeanor and fined not less than one hundred dollars ($100.00) nor more than one thousand dollars  ($1,000) for each offense. When the register of deeds relies on the statement of the party presenting the instrument for registration as to the correct amount of stamps to be affixed, the register of deeds is not subject to prosecution as an aider or abettor under this section.
"§ 105-228.35.  Administrative provisions.
The provisions of Subchapter III, Article 30 of Chapter 105 of the General Statutes of North Carolina to the extent applicable shall apply to the tax imposed herein.
"§ 105-228.36.  Reproduction of tax stamps.
No person, firm, or corporation shall print, engrave, or otherwise reproduce excise tax stamps except with the express permission of the Secretary of Revenue. The unauthorized reproduction of these stamps shall be punishable as a forgery under G.S. 14-119."
Sec. 2.  This act becomes effective October 1, 1991, and applies to transfers made on or after that date.