When must the conveyance tax be paid?

When must the conveyance tax be paid?

• A. Upon the sale of the property
• B. Upon recording the deed and within 90 days of transfer
• C. At the time of foreclosure
• D. At the end of the tax year

Answer: (B)

The conveyance tax must be paid upon recording the deed and within 90 days of the transfer of property. This timeline ensures that the tax is handled promptly after the transaction, aligning the payment with the official transfer of ownership as documented in public records. Recording the deed creates a public record of the property transfer, making the payment of the conveyance tax a requisite administrative step following the sale or transfer. This requirement helps maintain accurate property ownership records and allows the state to collect the appropriate taxes due on real estate transactions in a timely manner. By stipulating that the tax be paid within 90 days, it provides a clear timeframe for both buyers and sellers to manage their financial responsibilities associated with property transfer.

The conveyance tax must be paid upon recording the deed and within 90 days of the transfer of property. This timeline ensures that the tax is handled promptly after the transaction, aligning the payment with the official transfer of ownership as documented in public records. Recording the deed creates a public record of the property transfer, making the payment of the conveyance tax a requisite administrative step following the sale or transfer.

This requirement helps maintain accurate property ownership records and allows the state to collect the appropriate taxes due on real estate transactions in a timely manner. By stipulating that the tax be paid within 90 days, it provides a clear timeframe for both buyers and sellers to manage their financial responsibilities associated with property transfer.