An Act To Clarify the Application of the Real Estate Transfer Tax in Regards to Section 1031 Exchanges
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §4641-A, sub-§3 is enacted to read:
3. Qualified intermediary; real estate transfer tax. With regards to transfers of real property involving a qualified intermediary pursuant to Section 1031 of the Code, the rate of tax specified in this section applies to the transfer of real property to a qualified intermediary and does not apply to the transfer of real property from a qualified intermediary.
summary
This bill clarifies that the real estate transfer tax applies to the transfer of real property to a qualified intermediary pursuant to Section 1031 of the Internal Revenue Code and does not apply to the transfer of real property from a qualified intermediary.