REC-1 - Recordation Tax – Overview

The "Recordation Tax" consists of two separate taxes: the realty transfer tax and the indebtedness tax. The realty transfer tax applies to all transfers of realty and applies at the rate of 37ȼ per $100. The tax is generally based on the greater of consideration paid or the value of the property. The indebtedness tax is imposed on the public recordation of any instrument evidencing an indebtedness such as mortgages, deeds of trusts, and various documents executed pursuant to the Uniform Commercial Code (e.g. financing statements, condition sales contracts, etc.). The indebtedness tax rate is $0.115 per $100 of indebtedness, minus the first $2000. 

Reference: Tenn. Code Ann. § 67-4-409.

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