Minnesota Deed Tax (Property Transfer Tax)

Deed Tax (Property Transfer Tax)
DT1, Deed Tax
*226471*

DT1, Deed Tax

Form DT1 may be used to document your claim for an exempt or minimum tax transfer. Note: In the absence of a qualifying reason, deed
tax must be based on at least the fair market value of the property being conveyed (M.S. 287.20, subd. 2). The “full” deed tax rate is .0033
(.0034 in Hennepin/Ramsey Counties).

Deed Tax

Name of Grantor				

Enter Reason Code (see below)

Name of Grantee
				

Deed Tax Amount

Property ID Number
				
				

Minimum Tax = $1.65
($1.70 for Hennepin and Ramsey counties)

Sign Here

Grantor, grantee or representative, sign below
I declare that the information on this certificate is correct and complete to the best of my knowledge and belief.
I understand that there are penalties for underpayment of tax (M.S. 287.31 and M.S. 287.325).
Signature of Grantor/Grantee or Authorized Agent	

Title	

Date

Print Name	

E-mail Address (optional)	

Daytime Phone

Address	

City	

State	

ZIP Code	

If you have questions, call 651-556-4721.

Reason codes

Exempt transfers
	1	Transfer of real property by court order.
The change in ownership must result
from the order itself.
	2	Transfer of real property through
certificate of sale issued to the purchaser
in a mortgage or lien foreclosure sale.
	3	Transfer of real property through a
certificate of redemption issued to the
redeeming mortgagor, their heir, devisee
or representative.
	4	Deed to or from the federal government.
	5	Deed conveying real property located
within the historic boundaries of a
federally recognized American Indian
tribe if the grantor or grantee is the tribal
government or member of a tribe.
	6	Deed between the parties to a marriage
dissolution pursuant to the terms of the
dissolution decree.
	7	Deed conveying a cemetery lot or lots.
	8	Deed by a personal representative
distributing the decedent’s property
according to the terms of the will or
probate court order.
	9	Transfer on death deed defined under
M.S. 507.071.
	10	Deed between co-owners partitioning
their undivided interest in the same piece
of property.
	11	Transfer pursuant to a permanent school
fund land exchange under M.S. 92.121
and related laws.
(Rev 4/21)

	12	Deed or other instrument that grants,
creates, modifies or terminates an
easement.
	13	Deed transferring real property
pursuant to a Ch. 11 or Ch. 12 plan of
reorganization.
	14	Deed resulting from a business conversion as listed in M.S. 287.21.
Minimum tax transfers
Designated transfers (codes 15 through 20).
	15	Deed between a sole owner and entity
owned directly or indirectly by that sole
owner, or between two entities owned
directly or indirectly by the sole owner.
	16	Deed between a husband and wife and
an entity owned directly or indirectly
by the couple, or between two entities owned directly or indirectly by the
couple.
	17	Deed between co-owners and an entity
owned directly or indirectly by the coowners, or between two entities owned
directly or indirectly by the co-owners.
	18	Deed between a grantor and a revocable
trust created by that grantor.
	19	Deed transferring substantially all
assets of a corporation pursuant to a reorganization under IRC section 368(a).
	20	Deed transferring substantially all
assets of a partnership pursuant to a
continuation under IRC section 708.
Ownership change provision: Any ownership change in the grantee/transferee entity
within six months after a designated transfer triggers a retroactive deed tax.

	21	Deed of real property resulting from the
consolidation or merger of two or more
corporations, limited liability companies, or partnerships, or any combination of such entities.
	22	Deed gifting real property.
	23	Deed given in lieu of foreclosure. Deed
includes non-merger language and the
FMV of the property minus the mortgage lien is $3,000 or less.
	24	Deed correcting error for less than
$3,000 of consideration (corrective
deed).
	25	Deed from an intermediary as part of
an IRC section 1031 exchange. The intermediary’s total document fee for the
transfer is $3,000 or less. A “full” deed
tax was paid on the FMV of the real
property when the transfer was made to
the intermediary.
	26	Deed written between a principal and
agent, and the agent’s total compensation for the entire transaction, monetary
or otherwise, is less than $3,000.
	27	Deed to a builder for the purpose
of obtaining financing to build an
improvement for the grantor. Upon
completion the real property is
reconveyed to the land owner.
	28	If above codes do not apply, use Code
28 and explain below or attach a separate sheet.