Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 350 - Nebraska Department of Revenue, Property Assessment Division › Chapter 52 - Documentary Stamp Tax Regulations › Section 350-52-003 - EXEMPTIONS

Current through June 17, 2024
003.01 All deeds presented for recordation
				are presumed taxable unless it clearly appears on the face of the deed or
				sufficient documentary proof is presented to the register of deeds that the
				deed falls under an exemption enumerated in this regulation. Since all deeds
				are presumed to be taxable, these exemptions should be strictly
				construed.
003.02 The following
				shall be exempt from documentary stamp tax:
003.02A Deeds executed and recorded prior to
				November 18, 1965.
003.02B Deeds
				transferring real property wherein the United States of America, the State of
				Nebraska, or any of their agencies, or political subdivisions is a grantor or
				grantee. Federally chartered savings and loans and banks are not agencies or
				political subdivisions of the United States of America, and are not exempt.
				Banks and savings and loan associations chartered by the state are not agencies
				or political subdivisions of the state, and are not exempt. Some federal and
				state instrumentalities may be exempt from the documentary stamp tax by virtue
				of their governing statutes. Proof of eligibility for exemption may be required
				by the register of deeds before an exemption shall be granted. The proof of
				eligibility shall be forwarded to the Department of Revenue by the register of
				deeds.
003.02C Deeds which secure
				or release a debt or other obligation such as a mortgage, deed of trust, lien,
				or contract. Deeds which indicate cancellation of a contract right upon default
				of a land contract merely secure or release the remaining contractual
				obligation and are exempt. Deeds which convey legal title upon delivery
				following satisfaction of a contract are transferring title and are taxable.
				Deeds given by a debtor to a lender in lieu of foreclosure procedures are
				entitled to this exemption if the existence of the debt appears on record or
				can otherwise be proven. A trustee's deed conveying real property back to the
				original grantor indicating payment of the underlying debt or compliance with
				the terms of the underlying security agreement is exempt. Contractor's deeds
				are entitled to this exemption.
003.02D Deeds which, without additional
				consideration, confirm, correct, modify, or supplement a deed previously
				recorded but which do not extend or limit existing title or interest. Deeds
				transferring property into a grantor's trust are entitled to this exemption.
				Deeds transferring property to or from owners as tenants in common from or to
				the same owners as joint tenants are not entitled to this exemption.
003.02E Deeds between husband and wife, or
				parent and child, including the child's spouse as a joint tenant or cotenant,
				without actual consideration therefore. Deeds between parent and son-in-law or
				daughter-in-law without the inclusion of the parents, son or daughter, as the
				case may be are not entitled to this exemption. Deeds between step-parent and
				step-children do not qualify for this exemption unless step-children are
				legally adopted.
003.02F Deeds to
				or from a family corporation, partnership, or limited liability company, when
				all shares of stock of the corporation or interest in the partnership or
				limited liability company are owned by members of a family, or a trust created
				for the benefit of a member of that family, related to one another within the
				fourth degree of kinship according to the rules of civil law, and their spouses
				for no consideration other than the issuance of stock of the corporation or
				interest in the partnership or limited liability company to such family
				members, or the return of the stock to the corporation in partial or complete
				liquidation of the corporation or deeds in dissolution of the interest in the
				partnership or limited liability company. In order to qualify for this
				exemption, the family corporation, partnership, or limited liability company,
				must transfer the title to the property in its own name and not in the name of
				individual shareholders, partners, or members.
003.02G Tax deeds.
003.02H Deeds of partition, meaning those
				deeds between joint tenants or tenants in common by which they divide real
				property so held among them in severalty each taking a distinct part. In order
				to qualify for this exemption, the joint tenants or tenants in common must each
				take a part of the jointly held real property. Exchanges of property between
				persons who do not hold all of the real property exchanged as joint tenants or
				tenants in common are not entitled to this exemption. The jointly held real
				property does not have to be part of a contiguous parcel in order to qualify
				for this exemption.
003.02I Deeds
				made pursuant to mergers, consolidations, sales, or transfers of the assets of
				corporations pursuant to plans of merger or consolidation filed with the office
				of the Secretary of State. A copy of such plan filed with the Secretary of
				State shall be presented to the register of deeds before such exemption shall
				be granted. Such copies are to be maintained in the office of the register of
				deeds for a period of three years. Such copies are not required to be filed of
				record in the office of the register of deeds for purposes of this exemption.
				Partnerships do not qualify for this exemption. Deeds made pursuant to
				corporate reorganizations or restructuring do not qualify for this
				exemption.
003.02J Deeds made by a
				subsidiary corporation to its parent corporation for no consideration other
				than the cancellation or surrender of the subsidiary's stock. Partnerships do
				not qualify for this exemption.
003.02K Cemetery deeds, meaning those deeds
				for the sale of cemetery plots.
003.02L Mineral deeds. Timber deeds do not
				qualify for this exemption.
003.02M
				Deeds executed pursuant to court decrees including deeds executed in accordance
				with property settlement agreements approved by court decrees in dissolution of
				marriages. Deeds given in connection with proceedings under the United States
				Bankruptcy Code are entitled to this exemption. Any deed given involuntarily
				pursuant to a court decree is entitled to this exemption.
003.02N Land contracts or memoranda
				thereof.
003.02O Deeds releasing a
				reversionary interest, a condition subsequent or precedent, a restriction, a
				covenant, or any other contingent interest.
003.02P Deeds of distribution, meaning those
				deeds executed by the personal representative conveying to the devisees or
				heirs of the real property passing by testate or intestate
				succession.
003.02Q Deeds
				transferring real property located within the boundaries of a Nebraska Indian
				reservation when the grantor or grantee is a reservation Indian.
003.02R Deeds transferring real property into
				a trust where the transfer of the same property would be exempt if the transfer
				were to be made directly from the grantor to the beneficiary or beneficiaries
				under the trust. No such exemption shall be granted unless the register of
				deeds is presented with a signed statement certifying that the transfer of the
				real property is made under such circumstances as to come within one of the
				other exemptions specified in this regulation and that evidence supporting the
				exemption is maintained by the person signing the statement and is available
				for inspection by the Department of Revenue. The statement must specify the
				underlying exemption.
003.02S Deeds
				transferring real property from a trustee to a beneficiary of a trust. Deeds
				transferring real property from a trustee to a non-beneficiary are subject to
				the tax whether or not proceeds of the sale are to go to the
				beneficiary.
003.02T Deeds which
				convey real property held in the name of any partnership, or limited liability
				company, which is not a family partnership or limited liability company, to any
				partner in the partnership, member of the limited liability company, or his or
				her spouse.
003.02U
				Leases.
003.02V
				Easements.
003.02W Deeds which
				transfer title from a trustee to a beneficiary pursuant to a power of sale
				exercised by a trustee under a trust deed.