§ 11-3-204. LIQUIDATIONS AND DISSOLUTIONS.

(a)

Partial exceptions. The transfer tax does not apply to transactions described under this section to the extent that:

(1)

Property is conveyed to a person who was an original shareholder or partner of the entity involved;

(2)

Property is conveyed to a direct descendant or relative within 2 degrees of an individual who was an original shareholder or partner of the entity involved; or

(3)

Property is conveyed to a person who acquired the status of shareholder or partner by gift or devise from an original shareholder or partner of the entity involved.

(b)

Application. The transfer tax applies to the transfer of the real property of a:

(1)

Corporation to its shareholders on the liquidation, dissolution, or termination of that corporation; or

(2)

Partnership to its partners on the liquidation, dissolution, termination, or winding up of the affairs of that partnership.

(c)

Amount of tax. The amount of the transfer tax on liquidations and dissolutions shall be based on the full cash value of the property as determined by the State Department of Assessments and Taxation at the last date of finality.

(1988 Code, §§ 33-127, 33-139) (Bill No. 87, 1990, § 2, 8-13-1990; Bill No. 68, 1992, § 1, 7-1-1992; Bill No. 128, 1992, § 2, 7-13-1992; Bill No. 66-95, § 2, 6-30-1995; Bill No. 102-95, § 1, 7-1-1995; Bill No. 49-96, § 20, 7-1-1996; Bill No. 153-97, § 1, 3-8-1998; Bill No. 8-01, § 1, 4-14-2001; Bill No. 33-03, § 2, 7-1-2004)