Apparently, even the state legislature has had enough of some individuals cheating the state and counties out of revenue. A few months ago, they passed new laws to stop people like mayor Tony Aikens, his right-hand man, city attorney, judge want to be, Greg Harrison and their other associates from cheating the system when it comes to quitclaim deeds. The new laws expressly forbids anyone from lying on a deed if they actually got money when they sold property.
While it's always been illegal to lie and commit perjury and to commit tax evasion when filing a quitclaim deed, some people did it anyway due to the vagaries in the previous law.
Guess the big shots will have to pay their taxes like us peasants do now.
Below is a statement from a local title company along with a statement from the Loudon County Register's of Deeds office.
In light of the new change in Tennessee law regarding T.C.A 66-5-103, more specifically the recording of Quit Claim Deeds, we wanted to make our clients aware of how this may affect you.
In the past, Quit Claim Deeds were typically used as a zero value transaction where no money was exchanged. Examples of this would be adding or removing a spouse or relative to the title, removal of a party from the deed by divorce decree, inheriting properties via wills or heirship, etc.
The change to T.C.A 66-5-103 now provides that if the property itself is transferred, not the interest, then it is taxable on the value of the property.
We wanted to make our clients aware, as we will be asking more in-depth questions in regards to Quit Claim Deeds and the purpose thereof in order to correctly ascertain if recording taxes will apply. In some cases, we may ask you that you take the Deed to the corresponding Register's Office to record if we are unsure.
Below is more information from the Loudon County Register of Deeds.
