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2014 Op. Va. Att'y Gen. 1 (2014)

handle is hein.sag/sagva0119 and id is 1 raw text is: COMMONWEALTH of VIRGINIA
Office of the Attorney General
Kenneth T. Cuccinelli, II                                                                  900 East Main Street
Attorney General                             January 3, 2014                            Richmond, Virginia 23219
FAX 804-78641991
Virginia Relay Services
The Honorable Faye W. Mitchell                                                           800-828-1120
Clerk of Court, Chesapeake Circuit Court                                                       7-1-1
307 Albemarle Drive, Suite 300A
Chesapeake, Virginia 23322
Dear Ms. Mitchell:
I am responding to your request for an official advisory opinion in accordance with § 2.2-505 of
the Code of Virginia.
Issue Presented
You ask whether Federal credit unions are exempted from paying the recordation tax imposed
upon grantees by § 58.1-801 of the Code of Virginia pursuant to the exemption provided by 12 U.S.C.
§ 1768.
It is my opinion that, pursuant to the exemption provided by 12 U.S.C. § 1768, Federal credit
unions are exempted from paying the recordation tax imposed on grantees by § 58.1-801 of the Code of
Applicable Law and Discussion
The Virginia Recordation Tax Act levies a tax on every deed admitted to record, except a deed
exempt from taxation by law.,2 Previous opinions of this Office have noted, however, that 'Congress
may create exemptions from taxation for specific entities even if such exceptions are not memorialized in
the states' laws. Implicit in [this] opinion is the authority of the federal government to exempt specific
real estate transactions from state taxation.''3
The United States Code provides Federal credit unions with a statutory exemption from taxation.
Specifically, the United States Code states:
The Federal credit unions organized [under 12 U.S.C. Chapter 14], their property, their
franchises, capital, reserves, surpluses, and other funds, and their income shall be exempt
from all taxation now or hereafter imposed by the United States or by any State,
'VA. CODE ANN. §§ 58,1-800 through 58.1-817 (2013).
2 Section 58.1-801(A). See also § 58.1- 802(A) (regarding tax to be paid by grantors).
3 2013 Op. Va. Att'y Gen. No. 13-010 at I (quoting 2012 Op. Va. Att'y Gen. 137 at 138), available at
See also 2003 Op. Va. Att'y Gen. 177, 179; 2002 Op. Va. Att'y Gen. 328, 329.

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