Exemption for Certain Types of Transferors

(a) General . Withholding on a Transfer is not required for certain types of Transferors as described below. In the case of a Transfer that includes more than one Transferor, this exemption only applies to those Transferors so described. All other Transferors are subject to withholding on the Transfer as otherwise determined in 830 CMR 62B.2.4. A Transferor claiming exemption from withholding must certify that they are exempt on the Transferor’s Certification provided to the Withholding Agent at or before Closing as required under 830 CMR 62B.2.4(8). The following types of Transferors qualify for exemption:

A full-year Massachusetts resident, as defined in 830 CMR 62B.2.4(5)(b);

A Pass-through Entity;

A Publicly Traded Partnership ;

An estate of a resident decedent or a resident trust as described in M.G.L. c. 62, § 10(c);

A corporation with a continuing Massachusetts business presence, as defined in 830 CMR 62B.2.4(4)(c)1, or a member of a combined group where one member of such group has a continuing Massachusetts business presence, as defined in 830 CMR 62B.2.4(4)(c)1, and, in either instance, the requirement set forth in 830 CMR 62B.2.4(4)(c)2 is also met;

An organization qualified under Code § 501 and exempt from tax in Massachusetts, unless the Transfer results in unrelated business taxable income, as defined under Code § 512, to the Transferor;

An insurance company that is subject to the provisions of M.G.L. c. 63, §§ 20 through 26;

The United States Government, the commonwealth or any political subdivision thereof, or their respective agencies;

The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or a private mortgage insurance company;

Any financial institution, as defined in M.G.L. c. 63, § 1, that Maintains a Place of Business in Massachusetts; and

A real estate investment trust under Code §§ 856 through 859, provided that the proceeds from the trust’s sale of the Real Estate are distributed to the trust’s shareholders in the form of dividends derived from the sale of Real Estate.

(b) Full-year Massachusetts Resident . For the purpose of 830 CMR 62B.2.4, a person is a full-year Massachusetts resident if they:

Have been a resident, as defined in M.G.L. c. 62, § 1(f), from January 1 of the year in which the Real Estate Transfer occurs through the Closing, and

Represent that they will continue to be a resident, as defined in M.G.L. c. 62, § 1(f), after Closing.

(c) Corporation or Member of Combined Group with Continuing Massachusetts Business Presence.

A corporation or member of a combined group with a continuing Massachusetts business presence is an entity that:

a. filed a Massachusetts income tax return for the tax year prior to the tax year in which the Transfer occurs; and b. Maintains a Place of Business in Massachusetts at the time of the Transfer;

A corporation will only be deemed to meet the requirement for the exemption for Transfers set forth in 830 CMR 62B.2.4(4)(a)5 when it:

a. represents that it or a member of its combined group is subject to a requirement to report the Transfer on a Massachusetts tax return for the current year, and that it or that member will so report the Transfer; and b. represents that it is not selling or transferring all or substantially all of the corporation’s assets situated in Massachusetts such that, under M.G.L. c. 62C, § 51, it would be required to seek a waiver or notify the Commissioner and pay the taxes due on the Transfer on or before the date of sale or Transfer.