Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 350 - Nebraska Department of Revenue, Property Assessment Division
Chapter 52 - Documentary Stamp Tax Regulations
Section 350-52-003 - EXEMPTIONS

003.02A Deeds executed and recorded prior to November 18, 1965.

003.02B Deeds transferring real property wherein the United States of America, the State of Nebraska, or any of their agencies, or political subdivisions is a grantor or grantee. Federally chartered savings and loans and banks are not agencies or political subdivisions of the United States of America, and are not exempt. Banks and savings and loan associations chartered by the state are not agencies or political subdivisions of the state, and are not exempt. Some federal and state instrumentalities may be exempt from the documentary stamp tax by virtue of their governing statutes. Proof of eligibility for exemption may be required by the register of deeds before an exemption shall be granted. The proof of eligibility shall be forwarded to the Department of Revenue by the register of deeds.

003.02C Deeds which secure or release a debt or other obligation such as a mortgage, deed of trust, lien, or contract. Deeds which indicate cancellation of a contract right upon default of a land contract merely secure or release the remaining contractual obligation and are exempt. Deeds which convey legal title upon delivery following satisfaction of a contract are transferring title and are taxable. Deeds given by a debtor to a lender in lieu of foreclosure procedures are entitled to this exemption if the existence of the debt appears on record or can otherwise be proven. A trustee's deed conveying real property back to the original grantor indicating payment of the underlying debt or compliance with the terms of the underlying security agreement is exempt. Contractor's deeds are entitled to this exemption.

003.02D Deeds which, without additional consideration, confirm, correct, modify, or supplement a deed previously recorded but which do not extend or limit existing title or interest. Deeds transferring property into a grantor's trust are entitled to this exemption. Deeds transferring property to or from owners as tenants in common from or to the same owners as joint tenants are not entitled to this exemption.

003.02E Deeds between husband and wife, or parent and child, including the child's spouse as a joint tenant or cotenant, without actual consideration therefore. Deeds between parent and son-in-law or daughter-in-law without the inclusion of the parents, son or daughter, as the case may be are not entitled to this exemption. Deeds between step-parent and step-children do not qualify for this exemption unless step-children are legally adopted.

003.02F Deeds to or from a family corporation, partnership, or limited liability company, when all shares of stock of the corporation or interest in the partnership or limited liability company are owned by members of a family, or a trust created for the benefit of a member of that family, related to one another within the fourth degree of kinship according to the rules of civil law, and their spouses for no consideration other than the issuance of stock of the corporation or interest in the partnership or limited liability company to such family members, or the return of the stock to the corporation in partial or complete liquidation of the corporation or deeds in dissolution of the interest in the partnership or limited liability company. In order to qualify for this exemption, the family corporation, partnership, or limited liability company, must transfer the title to the property in its own name and not in the name of individual shareholders, partners, or members.

003.02G Tax deeds.

003.02H Deeds of partition, meaning those deeds between joint tenants or tenants in common by which they divide real property so held among them in severalty each taking a distinct part. In order to qualify for this exemption, the joint tenants or tenants in common must each take a part of the jointly held real property. Exchanges of property between persons who do not hold all of the real property exchanged as joint tenants or tenants in common are not entitled to this exemption. The jointly held real property does not have to be part of a contiguous parcel in order to qualify for this exemption.

003.02I Deeds made pursuant to mergers, consolidations, sales, or transfers of the assets of corporations pursuant to plans of merger or consolidation filed with the office of the Secretary of State. A copy of such plan filed with the Secretary of State shall be presented to the register of deeds before such exemption shall be granted. Such copies are to be maintained in the office of the register of deeds for a period of three years. Such copies are not required to be filed of record in the office of the register of deeds for purposes of this exemption. Partnerships do not qualify for this exemption. Deeds made pursuant to corporate reorganizations or restructuring do not qualify for this exemption.

003.02J Deeds made by a subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the subsidiary's stock. Partnerships do not qualify for this exemption.

003.02K Cemetery deeds, meaning those deeds for the sale of cemetery plots.

003.02L Mineral deeds. Timber deeds do not qualify for this exemption.

003.02M Deeds executed pursuant to court decrees including deeds executed in accordance with property settlement agreements approved by court decrees in dissolution of marriages. Deeds given in connection with proceedings under the United States Bankruptcy Code are entitled to this exemption. Any deed given involuntarily pursuant to a court decree is entitled to this exemption.

003.02N Land contracts or memoranda thereof.

003.02O Deeds releasing a reversionary interest, a condition subsequent or precedent, a restriction, a covenant, or any other contingent interest.

003.02P Deeds of distribution, meaning those deeds executed by the personal representative conveying to the devisees or heirs of the real property passing by testate or intestate succession.

003.02Q Deeds transferring real property located within the boundaries of a Nebraska Indian reservation when the grantor or grantee is a reservation Indian.

003.02R Deeds transferring real property into a trust where the transfer of the same property would be exempt if the transfer were to be made directly from the grantor to the beneficiary or beneficiaries under the trust. No such exemption shall be granted unless the register of deeds is presented with a signed statement certifying that the transfer of the real property is made under such circumstances as to come within one of the other exemptions specified in this regulation and that evidence supporting the exemption is maintained by the person signing the statement and is available for inspection by the Department of Revenue. The statement must specify the underlying exemption.

003.02S Deeds transferring real property from a trustee to a beneficiary of a trust. Deeds transferring real property from a trustee to a non-beneficiary are subject to the tax whether or not proceeds of the sale are to go to the beneficiary.

003.02T Deeds which convey real property held in the name of any partnership, or limited liability company, which is not a family partnership or limited liability company, to any partner in the partnership, member of the limited liability company, or his or her spouse.

003.02U Leases.

003.02V Easements.

003.02W Deeds which transfer title from a trustee to a beneficiary pursuant to a power of sale exercised by a trustee under a trust deed.