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LICENSES TAXES - DEED RECORDING FEE SUMMARY

The deed recording fee imposed under Chapter 24 of Title 12 of the South Carolina Code of Laws has been amended (Senate Bill 564). The following outlines the application of the deed recording fee to realty transferred on or after December 1, 1996 and recorded on or after June 10, 1997. However, since the effective date of Senate Bill 564 was June 10, 1997, refunds will not be available with respect to deeds recorded prior to June 10, 1997.

Note: Transfers of realty prior to December 1, 1996 are subject to the provisions of the documentary stamp tax of Code Section 12-21-380 in effect at the time of the transfer.

Imposition and Determination of Value

(A) A recording fee will be imposed by the clerk of court or register of mesne conveyances of each county, for the privilege of recording a deed, with respect to any deed whereby any lands, tenements or other realty is transferred to another person. The fee is one dollar and eighty-five cents for each five hundred dollars, or fractional part thereof, of the realty's value.

(B) Except as otherwise provided in this section, the term "value" means "the consideration paid or to be paid in money or money's worth for the realty."

The fair market value of the consideration must be used in calculating the consideration paid in money's worth. Taxpayers may elect to use the fair market value of the realty being transferred in determining fair market value of the consideration under the provisions of this section. Furthermore, taxpayers may elect to use the fair market value for property tax purposes in determining fair market value of realty under the provisions of this section.

For example:

If John Smith transfers realty to John Doe for 1,000 shares of ABC Corporation stock that John Doe owns, then the fair market value of the stock (the "consideration paid in ... money's worth") must be used in calculating the consideration paid in money's worth. Therefore, if the stock was selling on the New York Stock Exchange for $65 a share, the fair market value of that consideration would be $65,000 ($65 per share times 1,000 shares).

However, the taxpayer may elect to use the realty's fair market value or the realty's fair market value for property tax purposes in determining the deed fee due. As such, if the realty transferred to John Doe by John Smith had a fair market value of $64,000 and a fair market value for property tax purposes of $62,500, the taxpayer could use either $64,000 or $62,500 as the basis for determining the deed fee due.

In other words, when consideration is paid in money's worth (something other than money), the deed fee can be based on any one of the following:

Fair Market Value of the Consideration Paid in Money's Worth

($65,000 in this example)

Fair Market Value of the Realty Transferred

($64,000 in this example)

Fair Market Value for Property Tax Purposes of the Realty Transferred

($62,500 in this example)

However, in the case of realty transferred between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or as a distribution to a trust beneficiary, "value" means the realty's fair market value. However, the taxpayer may elect to use the realty's fair market value for property tax purposes in determining the deed fee due.

For example:

If XYZ Corporation, a stockholder in ABC Corporation, transfers realty to ABC Corporation, then the fair market value of the realty must be used in determining the deed fee due. If the realty transferred has a fair market value of $100,000, then the deed fee is based on $100,000.

However, the taxpayer may elect to use the realty's fair market value for property

tax purposes in determining the deed fee due. As such, if the realty transferred to ABC Corporation by XYZ Corporation had a fair market value for property tax purposes of $98,000, the taxpayer could elect to use $98,000 (instead of $100,000) as the basis for determining the deed fee due.

In other words, when realty is transferred between two corporations, one of which is a stockholder in the other corporation, the deed fee can be based on any one of the following:

Fair Market Value of the Realty Transferred

($100,000 in this example)

Fair Market Value for Property Tax Purposes of the Realty Transferred

($98,000 in this example)

(C) A deduction from value is allowed for the amount of any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining on the land, tenement, or realty after the transfer.

(D) Based on the above, the following are examples of the "value" used in determining the deed recording fee due:

TRANSACTION	VALUE
Realty transferred from John Doe to Jerry Public for $1,000 and the assumption of a mortgage with a balance of $81,000.	$1,000 Since the mortgage existed on the realty before the transfer and remained on the realty after the transfer, the $81,000 is deducted from the total consideration of $82,000.
Realty transferred from John Doe to Jerry Public for $82,000 The grantor paid $1,000 down and $81,000 at closing by obtaining a mortgage at a local financial institution.	$82,000 Since the mortgage did not exist on the realty before the transfer, the $81,000 cannot be deducted from the total consideration of $82,000.
Realty transferred from John Doe to XYZ Bank in lieu of foreclosure. The balance due on the mortgage, plus accumulated interest, is $121,000.	$121,000 By statute, consideration includes the forgiveness or cancellation of a debt. However, the value used may be less than $121,000 if the fair market value of the realty is less than $121,000 and the taxpayer elects to use the fair market value of the realty being transferred in determining fair market value of the consideration. In addition, the taxpayer may elect to use the fair market value for property tax purposes in determining fair market value.
Realty transferred from John Doe to Jerry Public for the cancellation of a debt, not associated with the realty, of $50,000.	$50,000 By statute, consideration includes the forgiveness or cancellation of a debt. However, the value used may be less than $50,000 if the fair market value of the realty is less than $50,000 and the taxpayer elects to use the fair market value of the realty being transferred in determining fair market value of the consideration. In addition, the taxpayer may elect to use the fair market value for property tax purposes in determining fair market value.
Realty transferred from XYZ Corporation to one of its stockholders - John Doe. The fair market value of the realty for property tax purposes is $90,000. No lien or encumbrance existed on the realty prior to the transfer.	$90,000 By statute, the fair market value of the realty must be used in calculating the fee due in a transaction between a corporation and one of its stockholders. Taxpayers may elect to use the fair market value for property tax purposes in determining fair market value under the law.

Liability

The fee is the liability of the grantor or the joint or several liability of the grantors. The grantee is secondarily liable for the fee. However, in the case of a master-in-equity deed or a deed from the federal government, a state or any of a state's political subdivisions, or a qualified retirement plan exempt from income taxes under the Internal Revenue Code to another person, the fee is the liability of the grantee or the joint and several liability of the grantees and not the grantor.

The grantor is the transferor of the realty (e.g. seller) and the grantee is the transferee of the realty (e.g. purchaser).

Exemptions

Exempted from the fee imposed by this article are deeds:

(1) transferring realty in which the value of the realty, as defined in Code Section 12-24-30, is equal to or less than one hundred dollars;

(2) transferring realty to the federal government or to a state, its agencies and departments, and its political subdivisions, including school districts;

(3) that are otherwise exempted under the laws and Constitution of this State or of the United States;

(4) transferring realty in which no gain or loss is recognized by reason of Section 1041 of the Internal Revenue Code as defined in Section 12-6-40(A);

(5) transferring realty in order to partition realty as long as no consideration is paid for the transfer other than the interests in the realty that are being exchanged in order to partition the realty;

(6) transferring an individual grave space at a cemetery owned by a cemetery company licensed under Chapter 55 of Title 39;

(7) that constitute a contract for the sale of timber to be cut;

(8) transferring realty to a corporation, a partnership, or a trust in order to become, or as, a stockholder, partner, or trust beneficiary of the entity provided no consideration is paid for the transfer other than stock in the corporation, interest in the partnership, beneficiary interest in the trust, or the increase in value in such stock or interest held by the grantor. However, the transfer of realty from a corporation, a partnership, or a trust to a stockholder, partner, or trust beneficiary of the entity is subject to the fee even if the realty is transferred to another corporation, a partnership, or trust;

(9) transferring realty from a family partnership to a partner or from a family trust to a beneficiary, as long as no consideration is paid for the transfer other than a reduction in the grantee's interest in the partnership or trust. A "family partnership" is a partnership whose partners are all members of the same family. A "family trust" is a trust, in which the beneficiaries are all members of the same family. "Family" means the grantor, the grantor's spouse, parents, grandparents, sisters, brothers, children, stepchildren, grandchildren, and the spouses and lineal descendants of any the them, and the grantor's and grantor's spouse's heir under a statute of descent and distribution. A "family partnership" or "family trust" also includes charitable entities, other family partnerships and family trusts of the grantor, and charitable remainder and charitable lead trusts, if all the beneficiaries are charitable entities or members of the grantor's family. A "charitable entity" means an entity which may receive deductible contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A);

(10) transferring realty in a statutory merger or consolidation from a constituent corporation to the continuing or new corporation;

(11) transferring realty in a merger or consolidation from a constituent partnership to the continuing or new partnership; and,

(12) that constitute a corrective deed or a quitclaim deed used to confirm title already vested in the grantee, provided that no consideration of any kind is paid or is to be paid under the corrective or quitclaim deed.

(13) transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of foreclosure executed by the mortgagee or deed pursuant to foreclosure proceedings.

Remittance of Fee in the County in which the Realty is Located

The fee must be remitted to the clerk of court or the register of mesne conveyances in the county in which the realty is located and recorded.

Remittance of Fee for Realty Located in more than one County

If the realty is located in more than one county, the person having the deed recorded in a county must state by affidavit what portion of the value of the realty is in that county and payment of the fee must be made based on the proportionate value of the realty located in that county.

Notation on the Instrument

Prior to recording a deed subject to the fee, the county must collect the fee and place a notation on the deed containing the following (1) the date the deed was filed; (2) the fee collected; and, (3) any other information required by the county. If the deed qualifies for an exemption, the word "EXEMPT" should be placed in the notation.

Affidavit of Value

An affidavit to be filed with a deed and that affidavit must show the value of the realty. For deeds exempt under the law, the value will not be required to be stated on the affidavit. Such affidavits must state the reason why the deed is exempt from the fee. The affidavit required by this section must be signed by a responsible person connected with the transaction and the affidavit must state that connection. Secretaries, paralegals, runners, other administrative personnel do not qualify as a "responsible person connected with the transaction" and, therefore, may not sign the affidavit.

The clerk of court or register of mesne conveyances shall file these affidavits in his office.

The clerk of court or register of mesne conveyances may, at his discretion, waive the affidavit requirement.

A person required to furnish the affidavit who wilfully furnishes a false or fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more that one thousand dollars or imprisoned not more that one year, or both.

The department has included in this manual a sample affidavit. The department is not requiring the use of this affidavit, but is providing it in order to assist recording officials and taxpayers. In order to simplify the process of preparing an affidavit, please feel free to photocopy this sample affidavit or to incorporate it into a computer word processing program.

Components of the Fee

The fee is composed of two fees as follows:

(1) a State fee equal to one dollar and thirty cents for each five hundred dollars, or fractional part thereof, of the realty's value, and

(2) a county fee equal to fifty-five cents for each five hundred dollars, or fractional part thereof, of the realty's value.

The State fee must be paid as follows: ten cents of each one dollar and thirty cents into Heritage Land Trust Fund; twenty cents of each one dollar and thirty cents into South Carolina Housing Trust Fund; and one dollar of each one dollar and thirty cents into the State general fund. The county fee must be paid into the general fund of the county.

Monthly Reports

The fees are due and payable to the Department of Revenue in monthly installments with a report filed by the clerk or Register of Mesne Conveyances on or before the twentieth day of the month following the month in which the fees were collected. The Department of Revenue may, at its discretion, allow a county to file its report on a basis other than monthly.

The county must remit with each report only that portion of the fee that represents the State portion. The county portion of the fee will be retained by the county.

Exemptions

No Consideration Deeds

Except as provided in the third paragraph of this section, the deed recording fee is based upon the "consideration paid or to be paid in money or money's worth for the realty.

Consideration paid or to be paid in money's worth includes, but is not limited to, other realty, personal property, stocks, bonds, partnership interest and other intangible property, the forgiveness or cancellation of a debt, the assumption of a debt, and the surrendering of any right. The fair market value of the consideration must be used in calculating the consideration paid in money's worth. Taxpayers may elect to use the fair market value of the realty being transferred in determining fair market value of the consideration under the provisions of this section.

In the case of realty transferred between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or as a distribution to a trust beneficiary, the fee is based on the realty's fair market value.

A deduction from value is allowed for the amount of any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining on the land, tenement, or realty after the transfer.

Therefore, the following are examples of transactions which are exempt from the deed recording fee under Code Section 12-40-40(1) when no consideration is paid or will be paid for the transfer:

Realty given as a gift to a family member, a friend, or other person

Realty donated to the government, a church or other charity

Realty transferred to a legal heir or devisee pursuant to a will

The following are examples of transactions which are subject to the fee based upon the fair market value of the realty, provided the fair market value is not equal to or less than $100:

Realty transferred from a parent corporation to a subsidiary corporation

Realty transferred from a subsidiary corporation to its parent corporation

Realty transferred from a trust to a beneficiary unless the trust is a family trust

Realty transferred from a trust to another trust (where one trust is a beneficiary in the other trust) unless both trusts qualify as family trusts

Realty transferred from a partnership to another partnership (where one partnership is a partner in the other partnership) unless both partnerships qualify as family partnerships

Realty transferred from a partnership to a partner unless the partnership qualifies as a family partnership

Consideration Equal to or Less Than $100

Many times realty may be transferred as a gift or for other reasons for "$5 and no other consideration." Code Section 12-24-40(1) exempts such transfers since the deed is "transferring realty in which the value of the realty ... is equal to or less than one hundred dollars." Value is defined as the consideration paid or to be paid in money or money's worth.

However, in the case of realty transferred between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or as a distribution to a trust beneficiary, this exemption would only apply if the fair market value of the realty is equal to or less than one hundred dollars.

Federal Government

All transfers of realty to the federal government or any of its instrumentalities are exempt from the recording fee.

All transfers of realty from the federal government or any of its instrumentalities to an individual, business or other entity are subject to the recording fee, unless otherwise exempted under the deed recording fee law since the liability for the fee would fall upon the grantee, and not the federal government.

In addition to federal agencies such as the Internal Revenue Service, the Department of Agriculture, and the Department of Defense, the following is a list of some federal instrumentalities:

Government National Mortgage Association

Production Credit Association

Farm Credit Banks

Bank for Cooperatives

Federal Land Bank Associations

Federal Credit Unions

This list is not all inclusive but includes several of the federal financial institutions that buy and sell realty in South Carolina.

See Exhibit "A" for a summary.

State of South Carolina and its Political Subdivisions

All transfers of realty to the state of South Carolina and its political subdivisions are exempt from the recording fee.

All transfers of realty from the state of South Carolina and its political subdivisions to an individual, business, or other entity are subject to the recording fee, unless otherwise exempted under the deed recording fee law. The liability for the fee will fall upon the grantee in accordance with the provisions of Code Section 12-24-20(b).

In addition to state agencies such as the Department of Revenue, the Department of Agriculture, and the Department of Commerce, all counties, municipalities, and public school districts are political subdivisions of the state. (This list is not all inclusive.)

See Exhibit "A" for a summary.

Transfers Exempted by the Laws and Constitution of the United States or South Carolina

(A) Both the Constitution or law the United States and the State of South Carolina provide exemptions for certain institutions and entities, many of which are federal chartered or state chartered. In order to qualify for this exemption, the person filing the deed for recording must prove to the clerk or RMC through the affidavit that the transfer is exempt. In other words, it must be determined whether the institution or entity is the grantor or grantee and whether the federal or state law exempts the institution from the fee.

For example, the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") are not federal instrumentalities but are federally chartered institutions that have been granted various tax exemptions by Congress. The following outlines the tax exemptions granted the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (Freddie Mac) by Congress:

Federal statute, 12 USCA 1723a (c)(2), established various tax exemptions for FNMA and reads:

The corporation, including its franchise, capital, reserves, surplus, mortgages or other security holdings, and income, shall be exempt from all taxation now or hereafter imposed by any State, territory, possession, Commonwealth, or dependency of the United States, or by the District of Columbia, or by any county, municipality, or local taxing authority, except that any real property of the corporation shall be subject to State, territorial, county, municipal, or local taxation to the same extent as other real property is taxed.

The Federal Home Loan Mortgage Corporation (Freddie Mac) is not an instrumentality of the United States and in fact pays federal income taxes. However, it has been granted certain other tax exemptions under 12 USCA 1452(e) which reads:

The Corporation, including its franchise, activities, capital, reserves, surplus, and income, shall be exempt from all taxation now or hereafter imposed by any territory, dependency, or possession of the United States or by any State, county, municipality, or local taxing authority, except that any real property of the Corporation shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

The above laws exempt these federal chartered institutions from certain taxation; therefore, it must be determined if the liability for the recording fee falls upon these federally chartered institutions.

Deeds which convey realty to federally chartered institutions that have been exempted from state and local taxation by Congress (e.g. FNMA, Freddie Mac), are subject to the deed recording fee (unless otherwise exempt under the law) since the liability for the fee will fall upon the grantor and not the federally chartered tax exempt institution.

Deeds which convey realty from these federally chartered institutions to an individual, business , or other entity are exempt from the deed recording fee since the legal incidence for the fee falls upon the grantor.

See Exhibit "A" for a summary concerning certain federally chartered institutions.

(B) In addition to certain entities being exempt by the laws and Constitution of the United States or South Carolina, certain transactions are also exempt from the deed fee by virtue of the laws and Constitution of the United States or South Carolina. The following are two examples of such transactions:

Deeds transferring realty under Chapter 11 of the US Bankruptcy Code are exempt from the fee. Section 1146 of the Bankruptcy Code specifically exempts such transfers.

Deeds transferring realty as a result of converting a partnership to a limited liability company are exempt from the fee. Code Section 33-44-903 states that "[a] partnership or limited partnership that has converted [to an LLC] ... is for all purposes the same entity that existed before the conversion" and all property owned by the converting partnership vests in the LLC. Therefore, for South Carolina purposes, the realty is still vested in the same partnership. No realty has been "transferred to another person" as required by Code Section 12-24-10. As such, if a partnership converting to an LLC conveys realty to the LLC, the recording fee imposed under Code Section 12-24-10 will not be due.

Section 1041 of the Internal Revenue Code

Transfers of realty in which no gain or loss is recognized by reason of Section 1041 of the Internal Revenue Code are exempt from the fee. This exemption will exempt transfers to a spouse and transfers that are the result of a divorce whether or not the transfer is made for a consideration. Attached as Exhibit "B" is some information concerning Section 1041.

Partition Deeds

Transfers of an interest in realty in order to partition realty are exempt from the fee as long as no consideration is paid for the transfer other than the interests in the realty that are being exchanged in order to partition the realty.

Black's Law Dictionary, Fifth Edition, defines "partition" as follows:

The dividing of lands held by joint tenants, coparceners, or tenants in common, into distinct portions, so that they may hold them in severalty. And, in a less technical sense, any division of real ... property between co-owners, resulting in individual ownership of the interest of each. Division between several persons of property which belongs to them as co-owners; it may be compulsory (judicial) or voluntary. O'Brian v. O'Brian, 89 Misc. 2d 433, 391 N.Y.S. 2d 502, 503.

Grave Spaces at Licensed Cemetery

Transfers of an individual grave space at a cemetery are exempt if the grave space is in a cemetery owned by a company licensed under Chapter 55 of Title 39 of the South Carolina Code of Laws. This exemption only applies to the sale of individual grave spaces. The sale of the entire cemetery is subject to the fee.

Family Partnerships, and Family Trusts

Transfers of realty to a family trust or to a family partnership are exempt.

Transfers of realty from a family trust to a beneficiary or from a family partnership to a partner are exempt as long as no considerations is paid for the transfer other than a reduction in the grantee's interest in the trust or partnership.

"Family partnership" means a partnership or a limited liability company taxed as a partnership whose partners or members are all members of the same family and also includes charitable entities, other family partnerships, other family limited liability companies taxed as partnerships, and family trusts of the grantor, and charitable remainder and charitable lead trusts, if all the beneficiaries are charitable entities or members of the grantor's family.

"Family trust" means a trust, in which the beneficiaries are all members of the same family. The beneficiaries of a family trust may also include charitable entities, other family partnerships and family trusts of the grantor, and charitable remainder and charitable lead trusts, if all the beneficiaries are charitable entities or members of the grantor's family.

"Family" means the grantor, the grantor's spouse, parents, grandparents, sisters, brothers, children, stepchildren, grandchildren, and the lineal descendants and spouses of any the them, and the grantor's and the grantor's spouses heirs under a statute of descent and distribution" Based on this definition, family will include first cousins, brother and sister in-laws, nieces, and nephews and their spouses.

"Charitable entity" means an entity which may receive deductible contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A).

Timber Deeds

Deeds that constitute a contract for the sale of timber to be cut are exempt.

Deeds transferring the timber and the underlying land are taxable.

Partnerships, LLC's, Corporations and Trusts

Transfers of realty to a corporation, a partnership, or a trust in order to become, or as, a stockholder, partner, or trust beneficiary of the entity provided no consideration is paid for the transfer other than stock in the corporation, interest in the partnership, beneficial interest in the trust, or the increase in value in such stock or interest held by the grantor are exempt from the deed recording fee.

Transfers of realty from a corporation, a partnership, or a trust to a stockholder, partner, or trust beneficiary of the entity (other than transfers specifically exempted by the law for realty transferred from a family trust to a beneficiary or from a family partnership to a partner) are subject to the fee even if the realty is transferred to another corporation, a partnership, or trust.

The following are examples of transfers subject to the fee unless otherwise exempt under the law:

Realty transferred by a corporation to any stockholder (individual, partnership, corporation) as part of the liquidation of the corporation, as a dividend, or for any reason whatsoever;

Realty transferred by a partnership (other than a family partnership) to any partner (individual, partnership, corporation) for any reason whatsoever; and,

Realty transferred by a trust (other than a family trust) to any trust beneficiary (individual, partnership, corporation) for any reason whatsoever.

Statutory Merger or Consolidation - Corporations

Transfers of realty in a statutory merger or consolidation from a constituent corporation to the continuing or new corporation are exempt.

Merger or Consolidation - Partnerships

Transfers of realty in a merger or consolidation from a constituent partnership to the continuing or new partnership are exempt.

Corrective Deeds

Deeds constituting a corrective deed or a quitclaim deed used to confirm title already vested in the grantee are exempt, provided no consideration of any kind is paid or to be paid for the corrective or quitclaim deed.

EXHIBIT "A" - SUMMARY OF NEW DEED RECORDING FEE

GOVERNMENT TRANSACTIONS

DEED FROM (GRANTOR) DEED TO (GRANTEE) TAX STATUS

Grantor Grantee Tax Due by Grantor *

Master-in-Equity Individual/Business Tax Due by Indiv./Business **

Individual/Business State Government Exempt

State Government Individual/Business Tax Due by Indiv./Business **

Individual/Business Federal Government Exempt

Federal Government Individual/Business Tax Due by Indiv./Business **

Individual/Business GNMA Exempt

Farm Credit Bank

Prod. Credit Assoc.

Bank for Cooperatives

Federal Land Bank Assoc.

GNMA Individual/Business Tax Due by Indiv./Business **

Farm Credit Bank

Prod. Credit Assoc.

Bank for Cooperatives

Federal Land Bank Assoc.

Individual/Business FNMA; Freddie Mac Tax Due by Individual/Business

FNMA; Freddie Mac Individual/Business Exempt

* Pursuant to Code Section 12-24-20(A), the grantee has a secondary liability for the fee.

** Pursuant to Code Section 12-24-20(B), the liability for the fee falls upon the grantee in the case of master- in-equity deeds and deeds from the federal or state government.

SAMPLE AFFIDAVIT FOR TAXABLE OR EXEMPT TRANSFERS

STATE OF SOUTH CAROLINA ) Page 1 of 2

COUNTY OF ) AFFIDAVIT

PERSONALLY appeared before me the undersigned, who being duly sworn, deposes and says:

1. I have read the information on this affidavit and I understand such information.

2. The property being transferred is located at , bearing County Tax Map Number , was transferred by to on .

3. Check one of the following: The deed is

(a) subject to the deed recording fee as a transfer for consideration paid or to be paid in money or money's worth.

(b) subject to the deed recording fee as a transfer between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, or is a transfer to a trust or as a distribution to a trust beneficiary.

(c) exempt from the deed recording fee because (See Information section of affidavit): (If exempt, please skip items 4 - 7, and go to item 8 of this affidavit.)

4. Check one of the following if either item 3(a) or item 3(b) above has been checked (See Information section of this affidavit.):

(a) The fee is computed on the consideration paid or to be paid in money or money's worth in the amount of .

(b) The fee is computed on the fair market value of the realty which is .

5. Check Yes or No to the following: A lien or encumbrance existed on the land, tenement, or realty before the transfer and remained on the land, tenement, or realty after the transfer. If "Yes," the amount of the outstanding balance of this lien or encumbrance is: .

6. The deed recording fee is computed as follows:

(a) Place the amount listed in item 4 above here:

(b) Place the amount listed in item 5 above here:

(If no amount is listed, place zero here.)

7. The deed recording fee due is based on the amount listed on Line 6(c) above and the deed recording fee due is:

8. As required by Code Section 12-24-70, I state that I am a responsible person who was connected with the transaction as: .

Page 2 of 2

9. I understand that a person required to furnish this affidavit who wilfully furnishes a false or fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.

Responsible Person Connected with the Transaction

SWORN to before me this

day of 19 Print or Type Name Here

Notary Public for

My Commission Expires:

INFORMATION

Except as provided in this paragraph, the term "value" means "the consideration paid or to be paid in money or money's worth for the realty." Consideration paid or to be paid in money's worth includes, but is not limited to, other realty, personal property, stocks, bonds, partnership interest and other intangible property, the forgiveness or cancellation of a debt, the assumption of a debt, and the surrendering of any right. The fair market value of the consideration must be used in calculating the consideration paid in money's worth. Taxpayers may elect to use the fair market value of the realty being transferred in determining fair market value of the consideration. In the case of realty transferred between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or as a distribution to a trust beneficiary, "value" means the realty's fair market value. A deduction from value is allowed for the amount of any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining on the land, tenement, or realty after the transfer. Taxpayers may elect to use the fair market value for property tax purposes in determining fair market value under the provisions of the law.

Exempted from the fee are deeds:

(1) transferring realty in which the value of the realty, as defined in Code Section 12-24-30, is equal to or less than one hundred dollars;

(2) transferring realty to the federal government or to a state, its agencies and departments, and its political subdivisions, including school districts;

(3) that are otherwise exempted under the laws and Constitution of this State or of the United States;

(4) transferring realty in which no gain or loss is recognized by reason of Section 1041 of the Internal Revenue Code as defined in Section 12-6-40(A);

(6) transferring an individual grave space at a cemetery owned by a cemetery company licensed under Chapter 55 of Title 39;

(7) that constitute a contract for the sale of timber to be cut;

(9) transferring realty from a family partnership to a partner or from a family trust to a beneficiary, provided no consideration is paid for the transfer other than a reduction in the grantee's interest in the partnership or trust. A "family partnership" is a partnership whose partners are all members of the same family. A "family trust" is a trust, in which the beneficiaries are all members of the same family. The beneficiaries of a family trust may also include charitable entities. "Family" means the grantor and the grantor's spouse, parents, grandparents, sisters, brothers, children, stepchildren, grandchildren, and the spouses and lineal descendants of any the above. A "charitable entity" means an entity which may receive deductible contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A);

(10) transferring realty in a statutory merger or consolidation from a constituent corporation to the continuing or new corporation;

(11) transferring realty in a merger or consolidation from a constituent partnership to the continuing or new partnership; and,

(13) transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of foreclosure executed by the mortgagee or deed pursuant to foreclosure proceedings.

SAMPLE AFFIDAVIT FOR EXEMPT TRANSFERS ONLY

STATE OF SOUTH CAROLINA ) Page 1 of 2

COUNTY OF ) AFFIDAVIT FOR EXEMPT TRANSFERS

PERSONALLY appeared before me the undersigned, who being duly sworn, deposes and says:

1. I have read the information on the back of this affidavit and I understand such information.

2. The property being transferred is located at , bearing County Tax Map Number , was transferred by to on .

3. The deed is exempt from the deed recording fee because (See Information section of affidavit):

4. As required by Code Section 12-24-70, I state that I am a responsible person who was connected with the transaction as: .

5. I understand that a person required to furnish this affidavit who wilfully furnishes a false or fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.

Responsible Person Connected with the Transaction

SWORN to before me this day of 19 Print or Type Name Here