Bulletin: KS2014002

Date:
December 18, 2014
To:
All Kansas Issuing Offices
RE:
LEGISLATIVE UPDATE – Mortgage Registration Tax

Dear Associates:

The phase-out of the Mortgage Registration Tax (MRT) over a five-year period begins January 1, 2015.

After January 1, 2015, the tax rate will drop to 0.20%;

After January 1, 2016, the tax rate will drop to 0.15%;

After January 1, 2017, the tax rate will drop to 0.10%;

After January 1, 2018, the tax rate will drop to 0.05%;

After January 1, 2019, the tax rate will drop to zero and the tax is repealed.

The tax is computed on the principal debt or obligation which is secured by the mortgage.

In addition, after January 1, 2015, the fee shall not exceed $125 for recording single-family mortgages on principal residences where the principal debt or obligation is $75,000.00 or less.

In conjunction with the phase-out of the MRT, recording charges will increase from $6 to $8 for the first page and from $2 to $4 for each additional page. Other recording charges will also increase. You may view the charges at this link: http://kslegislature.org/li/b2013_14/measures/hb2643/. Choose Enrolled then Document.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None