Bulletin: WV2008001

Date:
January 08, 2008
To:
All Issuing Offices in West Virginia
RE:
Withholding Tax on Sales by Non-Residents--UPDATE

Dear Associates:

The State Tax Commissioner has published the forms to be used in transactions involving non-resident sellers of real property who are not exempt from the withholding tax.  Please refer to Stewart Bulletin WV2007001 for a list of exemptions.

Note that form WVNRSR is to be completed by the settlement agent and:

  1. Copy A is to be sent to the State Tax Department with a check for the amount withheld;

  2. Copy B is to be filed with the deed of transfer in the Clerk’s office; and

  3. Copy C is to be given to the seller at closing.

Please note also that Copy B need only be filed with the deed if the seller is a non-resident AND taxes are due to be withheld.  If this is not the case, the exemption from the tax must still be recited either in the deed or in an affidavit attached to the deed, as set forth in West Virginia Code §11-21-71b(d)(1)(A-B). 

To recap, all deeds must therefore have either the exemption recited within the deed or on attached affidavit, or Copy B of WVNRSR must be attached at time of recordation.

The law became effective January 1 for all transfers of real property in West Virginia.  


Attachments (Click to View):

Application for Certificate of Exemption NAE
Application for Refund of Tax Withheld NRER
Certificate of Exemption
Instrustions TSD-389
Settlement Agemt Forms NRSR

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
WV2007001 Withholding Tax on Sales by Non-Residents
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None