NAC375.170. Examples of transactions to which taxes do not apply.

In addition to the exemptions provided by NRS 375.090, the following are examples of transfers or conveyances which are not subject to any tax imposed by chapter 375 of NRS:

     1. The reconveyance of realty, conveyed to secure a debt, upon payment of the debt.

     2. A deed to or by a trustee not pursuant to a sale.

     3. A deed to confirm title already vested in the grantee, such as a quitclaim deed to correct a flaw in title.

     4. A deed given by an executor in accordance with the terms of the will except that, if, by reason of a consideration passing between the devisees, one of them takes a greater share in the realty than that to which he is entitled under the will, the deed given by the executor to convey the greater share is subject to a tax computed upon the amount of the consideration.

     5. A deed from an agent to his principal conveying real estate purchased for and with money of the principal. A valid agency agreement must exist between the agency and his principal. No money may be supplied by the agent.

     6. An option or contingent agreement for the purchase of real property or a contract for the sale of real property, if the contract does not vest legal title until a future event occurs.

     7. Partition deeds, unless, for consideration, some of the parties take shares greater in value than their undivided interests, in which event a tax attaches to each deed conveying a greater share computed upon the consideration for the excess. If, however, the parties hold title as joint tenants or tenants in common, the tax is applicable, unless another exemption applies.

     8. Ordinary leases of real property for any term of years. If the lease is for life or in perpetuity, or if the lease is terminable at the option of the lessee only, the tax is applicable.

     9. A deed executed by a debtor conveying property to a trustee for the benefit of his creditors except that when the trustee conveys the property to a creditor or sells it to any other person, the conveyance executed by him is taxable.

     10. Conveyance to a receiver of realty included in the receivership assets, and reconveyance of the realty upon the termination of the receivership.

     11. A deed conveying real estate situated in a foreign country.

     12. Transfer of real estate in a statutory merger consolidation from a constituent corporation to the continuing or new corporation.

     13. Distribution of interests in real property owned by a corporation as part of the liquidation of a corporation to the shareholders of the corporation in percentages equal to their ownership in the corporation. To receive title to his interest in the property, each shareholder must redeem his stock.

     14. Transfer of title in real property to a trustee in a bankruptcy proceeding pursuant to a written plan of reorganization approved by the bankruptcy court.

     15. Transfer of real property from “A” to “A’s” trust, without consideration. “A” is trustor of the trust.

     16. Transfer of real property from “A” to “A’s” trust, without consideration. “B” is grantor on the deed and is the legal representative of “A,” the trustor of the trust.

     17. Real property is owned by “A” as trustee of the “A” Family Trust. “A” is also trustor of that trust. “A” transfers the real property to “C,” “A’s” son, without consideration.

     18. A purchase agreement that is recorded which sets forth the purchase price, legal description, buyer and seller of the property, but which also provides that the transaction is not complete until the seller obtains a zoning change and the buyer has not yet received a present interest in the property.

     [Tax Comm’n, Real Property Transfer Tax Ruling No. 4, eff. 1-1-68; A 9-28-68]—(A by R181-01, 5-13-2002; A by Dep’t of Taxation by R224-03, 4-30-2004)