Check out these updates on the California real estate withholding forms, RON in Florida, Maryland's Withholding Tax Increase, and more!
Effective January 1, 2020, the following real estate withholding forms and instructions have been consolidated into one new Form 593, Real Estate Withholding Statement:
- Form 593, Real Estate Withholding Tax Statement
- Form 593-C, Real Estate Withholding Certificate
- Form 593-E, Real Estate Withholding Installment Sale Acknowledgment
All remitters are required to complete the applicable part(s) of Form 593 and submit Sides 1-3 to the Franchise Tax Board (FTP) regardless of real estate transaction.
House Bill 409 for Remote Online Notary was signed into law on June 7, 2019, and is in effect as of January 1, 2020.
House Bill 288 was passed, which will provide flat recording fees in all counties in the State of Georgia. Starting January 1, 2020, recording any document in the real estate records will cost a flat $25, no matter how many pages. The only exception is that the county will charge $25 for each release. If one affidavit or deed lists three documents to be released, then the recording fee is $75.
An increase of 8% to the Withholding Tax Rate on individual non-resident sales of real property went into effect on January 1, 2020. You can see additional information on this increase by reading the Withholding Tax Facts 2019.
Effective January 1, 2020, an electronic Certificate of Real Estate Value (eCRV) must be filed when Minnesota real property is sold or conveyed for consideration for greater than $1,000. Consideration includes the amount of any debt assumed. On January 1, 2020, the consideration amount increased to $3,000. Transfer documents should contain language to indicate when an eCRV is not required.
Effective January 1, 2020, the Engrossed Substitute Senate Bill (ESSB 5998) went into effect, making changes to the real estate excise tax program. These changes include:
- A graduated state REET rate structure for sales of real property, EXCEPT agricultural land/timberland is excluded from the new rate structure, and will continue to have a state REET rate of 1.28%.
ESSB also includes updates for controlling interest transfers (50% or more change of ownership in an entity that owns real property):
- Expands the transfer period from 12 months to 36 months
- Changes the reporting requirements during the annual corporate renewal cycle to disclose any transfers of 16% or more