When is the Documentary Stamp Tax on Deeds required to be paid?

The Documentary Stamp Tax on Deeds is required to be paid upon deed transfers. This tax is assessed on the total consideration paid or to be paid for the transfer of real property. When a deed is executed to transfer property ownership, the tax is triggered as a part of the transaction process.

This requirement ensures that the state collects revenue based on real estate transactions that facilitate the transfer of ownership. The tax is typically calculated based on the sale price of the property or the value of what is received in exchange for the property, and it must be paid at the time the deed is recorded, which formalizes the transfer in public records.

Other situations mentioned, such as property listing, mortgage issuance, or closing of a loan, do not directly involve the transfer of ownership itself and therefore do not invoke the Documentary Stamp Tax on Deeds. Instead, they may relate to other financial aspects of real estate transactions, but the tax is specifically associated with the act of transferring the title of property from one owner to another.