![]() ![]() A transfer of shares or membership interests in a holding company that owns various special purpose entities holding real property may qualify as an indirect ownership of real property, and therefore be subject to the new disclosure and taxation issues. ![]() 449 or the Ohio Revised Code sections being amended. “Directly” and “indirectly” remain open to interpretation and guidance. The proposed legislation mandates disclosure and taxation of a transfer of more than 50% of the ownership interest in a pass-through entity – i.e., a sole proprietorship, limited liability company, partnership, or S corporation – that, directly or indirectly, owns real property in Ohio. 449, introduced by Representatives Green and Skindell on December 17, 2019, seeks to close Ohio’s loophole in certain circumstances. Until recently, Ohio was one of a few remaining states where a party could effect this type of transaction and avoid the conveyance fee and the immediate change in taxable valuation. Because the purchase of an interest in an entity is not one that triggers a conveyance fee, the seller and buyer avoid the conveyance fee and the county is not on notice of the consideration given for the “property.” By owning the entity that owns the property, the buyer indirectly owns the property. The purchaser then buys the ownership interest in the newly created entity. If the seller is not a single-purpose entity with only one asset, the seller creates a single-purpose entity and contributes the property to that entity. Essentially, if the seller of the real estate is a single-purpose entity that owns only one asset (the real estate) the purchaser would purchase all of the ownership interest (i.e., membership interest (LLC), partnership interests (partnership), stock (corporation)) of the seller. Additionally, the recording of a deed and related DTE 100 ( Real Property Conveyance Fee Statement of Value and Receipt) puts the county on notice of the transfer and the consideration given, which in turn may trigger an increase or decrease in taxable value as of the current tax lien date.įor years, buyers and sellers of real estate in Ohio have avoided the conveyance fee and deferred the change in taxable value by restructuring their real estate transactions as entity purchases. (DTE Form 102) is required if the grantor (seller) of property being conveyed was qualified for the current agricultural use valuation (CAUV) for the preceding or current tax year.Real estate transfers in Ohio are subject to a conveyance fee due upon recording the deed and payable to the county based upon the consideration given for the property. Statement of Conveyance of Current Agricultural Use Value Property (DTE Form 101) is required if the grantor (seller) of the property being conveyed was entitled to the Homestead reduction for the preceding or current tax year. Statement of Conveyance of Homestead Property Transfer fee is $.50 (fifty cents) per parcel.Ĭonveyance Form for Real Property and InstructionsĮxemption from Real Property Conveyance Form (DTE 100EX) The purpose of transferring deeds through the Auditor is to maintain an accurate record of property ownership and parcel identification and to collect conveyance fees required by Ohio Revised Code (ORC) Section 319.20 and 322.02.Ĭlermont County conveyance fees are $4.00 (four dollars) per $1000.00 (one thousand dollars) of consideration rounded up to the nearest one hundred dollars. ![]()
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