Request By:
Mr. Jan Blau
Attorney, National Division
USLIFE Title Insurance Company of New York
125 Maiden Lane
New York, New York 10038
Opinion
Opinion By: ROBERT F. STEPHENS, ATTORNEY GENERAL; William S. Riley, Assistant Attorney General
In your recent letter to the Attorney General an opinion is requested as to whether the transfer tax provided for in KRS 142.050 applies where a corporation transfers without consideration a tract of land to a partnership that is composed identically of the shareholders of the corporation.
Your attention is directed to subsection (k) of the above statute as amended by the 1978 General Assembly, see Kentucky Acts, 1978, Chapter 251, which states that there is exempt from the transfer tax, transfers between individuals and a corporation, with only nominal consideration therefor, if those individuals are the exclusive owners of that corporation.
Under the facts cited above the transfer tax would not apply.