The Maine Real Estate Transfer Tax Declaration form, also known as Form RETTD, is a crucial document used during real estate transactions in Maine. This form must be filed with the county Registry of Deeds when recording a property deed, ensuring that the appropriate transfer tax is assessed based on the property's value. Understanding how to accurately complete this form can help streamline the buying or selling process, making it easier for all parties involved.
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The Maine Real Estate Transfer Tax Declaration, commonly referred to as Form RETTD, plays a crucial role in the transfer of property ownership within the state. This form must be submitted alongside the deed when recording a property transfer at the county Registry of Deeds. It captures essential details about the transaction, including the names and addresses of both the buyer (grantee) and seller (grantor), as well as their federal identification numbers. Property specifics, such as the type of property and its location, are also required. The form includes sections for reporting the purchase price and fair market value, which directly influence the transfer tax amount. The transfer tax is calculated at a rate of $2.20 for every $500 of property value, split equally between the buyer and seller. Additionally, the form allows for exemptions and requires the declaration of any special circumstances that may affect the transaction's valuation. Completing this form accurately is essential, as it ensures compliance with state regulations and prevents potential penalties. For those navigating the complexities of real estate transactions in Maine, understanding the RETTD is a vital step in the process.
MAINE REAL ESTATE
00
TRANSFER TAX DECLARATION
Form RETTD
*18RETTD*
Do not use red ink.
1.County
2.Municipality
3.GRANTEE/PURCHASER
3a. Last name, fi rst name, MI; or business name
3c. Last name, fi rst name, MI; or business name
3e. Mailing address after purchasing this property
3f. Municipality
BOOK/PAGE - REGISTRY USE ONLY
3b. Federal ID
3d. Federal ID
3g. State 3h. ZIP Code
4. GRANTOR/SELLER
4a. Last name, fi rst name, MI; or business name
4b.
Federal ID
4c. Last name, fi rst name, MI; or Business name
4d.
4e. Mailing address
4f. Municipality
4g.
State 4h. ZIP Code
5. PROPERTY 5a. Map
Block
Lot
Sub-lot
Check any that apply
No maps exist
Multiple parcels
5c. Physical location
Portion of parcel
Not applicable
5b. Type of property - enter the code number that best describes the prop- erty being sold (see instructions).
5d. Acreage (see instructions)
.
6. TRANSFER TAX
6a.
Purchase price (If the transfer is a gift, enter “0”)
.00
6b.
Fair market value (Enter a value only if you entered “0” or a nominal value on line 6a)
6c. Exemption claim - Check the box if either grantor or grantee is claiming exemption from transfer tax and enter explanation below.
7. DATE OF TRANSFER (MM-DD-YYYY)
8. CLASSIFIED. WARNING TO BUYER - If the property is classifi ed as farmland,
open space, tree growth, or working waterfront, a substantial fi nancial penalty may
CLASSIFIED
be triggered by development, subdivision, partition, or change in use.
9.SPECIAL CIRCUMSTANCES. Were there any special circumstances with
the transfer that suggest the price paid was either more or less than its fair market value? If yes, check the box and enter explanation below.
10.INCOME TAX WITHHELD. The buyer is not required to withhold Maine income tax because:
Seller has qualified as a Maine resident
A waiver has been received from the State Tax Assessor
Consideration for the property is less than $100,000 The transfer is a foreclosure sale
11.DECLARATION(S) UNDER THE PENALTIES OF PERJURY. I declare that I have examined this return/report/document and (if applicable) accompanying schedules and statements and to the best of my knowledge and belief they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
PREPARER. Name of preparer: _____________________________________ Phone number:
__________________________________________
Mailing address: ______________________________________________ Email address: ___________________________________________
______________________________________________ Fax number:_____________________________________________
Rev. 11/21
Real Estate Transfer Tax Declaration
Instructions
The Real Estate Transfer Tax Declaration (Form RETTD) must be fi led with the county Registry of Deeds when the accompanying deed is recorded. The Registry of Deeds will collect a tax based on the value of the transferred property. The tax is equals $2.20 for each $500 of value and is imposed half on the purchaser and half on the seller. If the transferred property is in more than one municipality or if there are more than two sellers or buyers, a Supplemental Form must be completed. For more information, visit www.maine.gov/ revenue/propertytax/transfertax/transfertax.htm or contact the Property Tax Division at 207-624-5606.
Line 1. County. Enter the name of the county where the property is lo- cated. If the property is in more than one county, complete separate Forms
RETTD.
Line 2. Municipality. Enter the name of the municipality where the prop- erty is located. If the transferred property is located in more than one mu- nicipality, complete a Supplemental Form.
Line 3. Grantee/Purchaser. a) & c): Enter one name on each available line, beginning with last name fi rst. If more than two purchasers, complete a Supplemental Form. b) & d): If a business entity is entered on a) or c), enter the entity’s federal ID number. Do not enter a social security number. If you do not have a federal ID number, or if the transfer is of unimproved land for less than $25,000 or land with improvements for less than $50,000, you may enter all 0s in this fi eld. e) through h): Enter the mailing address for the buyer after the purchase of this property.
Line 4. Grantor/Seller. a) & c): Enter one name on each available line, beginning with last name fi rst. If more than two sellers, complete a Supplemental Form. b) & d): If a business entity is entered on a) or c), enter the entity’s federal ID number. Do not enter a social security number If you do not have a federal ID number, or if the transfer is of unimproved land for less than $25,000 or land with improvements for less than $50,000, you may enter all 0s in this fi eld. e) through h): Enter the mailing address for the seller after the purchase of this property.
Line 5. Property. a): Enter the appropriate map-block-lot-sub lot num- ber. If the property has more than one map and lot number, attach a Sup- plemental Form. If the municipality does not have property tax maps, if the property has more than one map and lot or if the transferred property is part of a larger parcel, then check the appropriate box. b): From the list provided below, enter the property type code that best describes the entire transferred property. c): If the municipality does not have prop- erty tax maps, enter the physical location (including street and number) of the property. d): Enter the acreage of the transferred property. If you
don’t know the exact acreage, enter an estimate based on the available information. The acreage recital is for MRS purposes only and it does not constitute a guarantee to the buyer of the acreage being conveyed. EXCEPTION: If the transferred property is a gift, you do not need to complete lines b) and d).
Line 6. Transfer tax. a): Enter the actual sale price or “0” if the transfer
is a gift. b): If you entered 0 or a sale price that is considered nominal on line a), enter the fair market value of the property on this line. The fair market value is based on the estimated price a property will bring in the open market and under prevailing market conditions in a sale between a willing buyer and a willing seller and must reflect the value at the time of the transfer. c): If either party is claiming an exemption from the transfer tax, check this box and enter an explanation of the reason for the claim. See 36 M.R.S. § 4641-C for a list of exemptions.
Line 7. Date of transfer. Enter the date of the property transfer, which refl ects when the ownership or title to the real property is delivered to the purchaser. This date may not be the same as the recording date.
Line 8. Classified. Check the box if the property is enrolled in one of the current use programs. Current use programs are tree growth, farm and open space, and working waterfront.
Line 9. Special circumstances. If the sale of the property was either substantially more or less than the fair market value, check this box and enter an explanation of the circumstances.
Line 10. Income tax withheld. Nonresident sellers are subject to real estate withholding under 36 M.R.S. § 5250-A. If you have any questions, please contact the Income Tax Division at 207-626-8473.
Line 11. Declaration(s) under penalty of perjury. Please provide the name, mailing address, phone number, and email address of the person or company preparing this form if diff erent from the parties of the transaction.
PROPERTY TYPE CODES
VACANT LAND
COMMERCIAL
INDUSTRIAL
RESIDENTIAL
MISC CODES
Rural
101
Mixed use
301
Gas and oil
401
201
Government
501
Urban
102
5+ unit apt.
303
Utility
402
202
Condominium
502
Oceanfront
103
Bank
304
Gravel pit
403
203
Timeshare unit
503
Lake/pond front
104
Restaurant
305
Lumber/saw mill
404
204
Nonprofi t
504
Stream/riverfront
105
Medical
306
Pulp/paper mill
405
205
Mobile home park
505
Agricultural
106
Office
307
Light manufacture
406
Mobile home
206
Airport
506
Commercial zone 107
Retail
308
Heavy manufacture
407
2-4-unit apt.
207
Conservation
507
Other
120
Automotive
309
420
220
Current use
Marina
310
classifi cation
508
Warehouse
311
520
Hotel/motel/inn
312
Nursing home
313
Shopping mall
314
320
Filling out the Maine Real Estate Transfer Tax Declaration Form (RETTD) is an important step in the property transfer process. Follow these steps to ensure the form is completed accurately.
The Maine Real Estate Transfer Tax Declaration Form (RETTD) is a document that must be filed when a property is transferred. This form is submitted to the county Registry of Deeds along with the deed. The purpose of the form is to report the sale and calculate the transfer tax based on the property's value.
Both the buyer (grantee/purchaser) and the seller (grantor) need to fill out the RETTD. Each party must provide their names, addresses, and federal ID numbers, if applicable. If there are more than two buyers or sellers, a Supplemental Form must be completed.
The transfer tax is calculated at a rate of $2.20 for every $500 of the property's value. This tax is split equally between the buyer and the seller. If the property is transferred in multiple municipalities, additional forms may be required.
You will need to provide specific details about the property, including:
If the property is being transferred as a gift, you should enter "0" as the purchase price on line 6a. In this case, you may also need to provide the fair market value on line 6b. Additionally, you do not need to complete the acreage section.
Yes, there are certain exemptions available. If either the buyer or seller qualifies for an exemption, you can check the box on line 6c and provide an explanation. Common exemptions include transfers that involve foreclosures or when the consideration for the property is less than $100,000.
If the sale price is significantly different from the fair market value due to special circumstances, check the box on line 9. You should then provide an explanation of these circumstances on the form.
Filing the RETTD incorrectly can lead to delays in the property transfer process and may result in penalties. It is important to double-check all information provided and ensure that the form is filled out completely and accurately before submission.
Using red ink to fill out the form. Always use black or blue ink to ensure clarity.
Failing to enter the correct county and municipality. Ensure these details match the property’s location.
Not providing complete names for the grantee/purchaser and grantor/seller. Include last name, first name, and middle initial or business name.
Omitting the federal ID numbers for businesses. If applicable, this information is crucial.
Neglecting to fill in the mailing address after the property purchase. This can lead to communication issues.
Incorrectly entering the property type code. Refer to the provided list to select the appropriate code.
Misreporting the purchase price or fair market value. Ensure these figures accurately reflect the transaction.
Forgetting to check the exemption claim box if applicable. This could affect tax obligations.
Not providing the date of transfer. This date is essential for record-keeping and tax purposes.
Failing to declare under penalty of perjury. This declaration is a legal requirement and must be completed accurately.
When filing the Maine Tax form, several additional documents may be required to ensure compliance and proper processing. Each of these forms serves a specific purpose in the real estate transaction process. Below is a list of common documents that are often used alongside the Maine Tax form.
These documents work in conjunction with the Maine Tax form to facilitate a smooth property transfer process. Ensuring that all necessary paperwork is completed and submitted correctly can help avoid delays and potential legal issues.
The Maine Real Estate Transfer Tax Declaration (Form RETTD) shares similarities with the IRS Form 1099-S. Both documents are used to report real estate transactions. The 1099-S specifically reports the sale of real estate to the IRS, while the RETTD is filed with the county Registry of Deeds. Each form requires details about the parties involved, such as names and addresses, and they both address the financial aspects of the transaction, including the sale price and any exemptions that may apply.
Another document similar to the Maine Tax form is the State of Maine Property Transfer Tax Return. This form is also used to report the transfer of real estate and includes information about the buyer, seller, and property details. Both forms require the reporting of the purchase price and fair market value. They also emphasize the importance of accurate information to ensure compliance with state tax laws.
The Maine Tax form is comparable to the HUD-1 Settlement Statement, which is commonly used in real estate transactions. The HUD-1 outlines all costs associated with the purchase of property, including transfer taxes. Similarly, the Maine RETTD includes a section on transfer tax, detailing the financial obligations of both the buyer and seller. Both documents serve to clarify the financial elements of the transaction for all parties involved.
The Maine RETTD is similar to the Real Property Transfer Tax Return used in other states. These forms are designed to report property transfers and assess the applicable transfer taxes. They typically require similar information about the parties, property, and transaction details. This consistency helps ensure that property transfers are accurately reported across different jurisdictions.
In addition, the Maine Tax form resembles the Quitclaim Deed form. While the Quitclaim Deed is used to transfer ownership of property, the RETTD is filed to report that transfer for tax purposes. Both documents require information about the grantor and grantee, and they must be completed accurately to reflect the transaction's details and comply with state regulations.
The Maine Tax form also shares characteristics with the Warranty Deed. A Warranty Deed provides a guarantee of clear title from the seller to the buyer, while the RETTD documents the transfer for tax assessment. Both forms require similar identifying information about the parties involved and the property being transferred, ensuring that the transaction is legally recognized.
Another similar document is the Notice of Sale form. This form is often used to notify relevant parties of a property sale. Like the RETTD, it includes information about the buyer and seller, as well as the property details. Both documents aim to ensure that all parties are informed of the transaction and that proper records are maintained.
The Maine Tax form is akin to the Affidavit of Title. This affidavit is a sworn statement regarding the ownership of a property and any claims against it. While the Affidavit of Title is more focused on the legal standing of the property, the RETTD captures the financial aspects of the transfer. Both documents are essential for establishing a clear record of the transaction.
Finally, the Maine RETTD has similarities with the Declaration of Homestead form. This form is used to claim a property as a primary residence, which can affect tax liabilities. Both documents require personal information about the property owner and details about the property itself. They play crucial roles in determining tax obligations and protecting the rights of property owners.
When filling out the Maine Tax form, it is crucial to follow specific guidelines to ensure accuracy and compliance. Here are six essential dos and don'ts to keep in mind:
By adhering to these guidelines, you can help facilitate a smoother transaction and avoid potential complications with the Maine Tax form.
Misconception 1: The Maine Tax Form is only for residential property transactions.
This is incorrect. The Maine Real Estate Transfer Tax Declaration applies to all types of property transactions, including commercial, industrial, and vacant land. Buyers and sellers of any property type must complete the form when transferring ownership.
Misconception 2: The transfer tax is a flat fee regardless of property value.
In reality, the transfer tax is calculated based on the property's value. It amounts to $2.20 for every $500 of value. This means that the tax will vary depending on the purchase price of the property, making it essential to accurately report the sale price on the form.
Misconception 3: You do not need to file the form if the property is a gift.
While the form allows for a “0” entry if the transfer is a gift, it still must be filed. Failure to do so can lead to complications during the recording of the deed. Proper documentation is crucial, even in gift transactions.
Misconception 4: Only the buyer is responsible for the transfer tax.
This is misleading. The transfer tax is imposed equally on both the buyer and the seller. Each party is responsible for half of the tax, which means both should be aware of their obligations when completing the Maine Tax Form.
Filling out the Maine Real Estate Transfer Tax Declaration form can seem daunting, but understanding its key components can make the process smoother. Here are some important takeaways to keep in mind:
By keeping these points in mind, you can navigate the Maine Tax form more effectively and ensure compliance with state regulations.