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CHANGES AS OF JANUARY 1, 2011
*DO NOT SEND TRANSFER TAX PAYMENTS TO THE TOWN*
Towns are instructed to send any transfer tax payments back to the sender for transfers as of January 1, 2011.
You will then need to re-send the payment and form PT-173 to the department as soon as possible to avoid late payment charges.
Please note that for transfers PRIOR to January 1, 2011, the transfer tax payment is to be sent to the town without form PT-173. For these transfers the due date of the tax remains the date of record.
Types of payments include paper checks and ACH debit. Paper checks can be used for either ePTTR filings or booklet filings. Please insure that with a paper check the payment voucher (PT-173) accompanies the check, or a bill may be issued.
Reminder: “Buyer 1” information must be referenced consistently on both forms.
The two formats of property transfer tax return that you may receive are an electronic return or a booklet return.
Transfer tax payments are no longer sent to the town, but are forwarded to the Department of Taxes at the time of transfer, unless the transfer occurred prior to January 1, 2011.
An electronic return is filed from closing. It will be placed in a queue specific to your town to be completed.
From the closing, a paper copy of the return (receipt), which is the PT-172 form, the deed and filing fees will be sent to you alerting you that you have a return to be acknowledged in your queue. The return will be visible in the queue as of the date of closing. You may proceed to complete your section of the electronic return. When you “complete” the return it will automatically be electronically filed with the state. No further action will be necessary.
This will be the same process as filing a return prior to January 1, 2011 with the exception that the payment will now go directly to the Tax Department with a PT 173 (a payment coupon voucher). The town will receive the PT-172, deed and filing fees. Complete the town’s section of the return and forward a copy to the Department. The only change that affects the town is the tax payment will now go directly to the state, not the town.
If a town receives a transfer tax payment, please return the payment and its accompanying form PT-173 to the sender. Do not forward the payment to the Department. You may attach a copy of this memo highlighting section #4 in the preparer’s section. The only exception to this rule is for transfers that closed prior to January 1, 2011. In that case the payment would be sent to the town without form PT-173. The Town should forward the payment and the PT-172 to the Department together within 30 days of receipt.
TRANSFERS PRIOR TO JANUARY 1, 2011
PREPARERS AND TOWNS
The new laws do not apply to transfers prior to January 1, 2011. The transfer tax due date is the date of record and the tax is paid to the town without the payment voucher (Form PT-173). After closing, the PT-172, transfer tax payment, deed and filing fees are sent to the town. The town clerk will acknowledge the return and forward a copy of that return and payment directly to the Tax Department.
TWO SIMPLE EXAMPLES OF FILING TRANSFER TAX RETURNS AS OF JANUARY 1, 2011
EXAMPLE OF FILING A BOOKLET PROPERTY TRANSFER TAX RETURN PRIOR TO JANUARY 1, 2011