§ 11-3-210. SAME - LEASES FOR TERMS OF MORE THAN 7 YEARS.

(a)

General principle. The transfer tax for a lease for a term of more than 7 years, which is not perpetually renewable, shall be based on the capitalization at 10% of the average annual rental over the entire term of the lease, including any renewal term, plus the actual consideration, not including rent, paid or to be paid.

(b)

Average annual rental. The average annual stipulated cash rental, not including indeterminable considerations of any kind, nature, or description, shall be used as the basis for tax computation if:

(1)

The average annual rental cannot be determined; or

(2)

Any part of the consideration, other than rent, consists of anything other than cash paid or to be paid, the value of which cannot be determined from the instrument of writing itself.

(c)

Taxable basis. For purposes of subsection (b) of this section, the taxable basis is the capitalization at 10% of the average annual stipulated cash rental over the entire period of the lease or by a factor which will convert the assessed value to market value, whichever amount is greater.

(1988 Code, § 33-133) (Bill No. 33-03, § 2, 7-1-2004)