Leases (Real Estate)
A Memorandum of Lease can be accepted for recording in lieu of the Lease, if it contains the following information:
- The names of the Lessor and Lessee.
- The terms of the Lease (or taxable rents)
- Any option to renew or extend the Lease
- The specific legal description of the property, or map showing the location.
Attorney General’s Opinion 90-00249
Deed tax is collected on the taxable rent.
To figure taxable rent by monthly rent:
- Multiply monthly rent by 12 to get annual rent.
- Multiple that amount by the number of years to get total rents for lease term.
- Refer to the Lease Chart (below) to find % according to lease term.
- Multiply rents x % to get taxable rents.
If given annual rents:
- Multiply annual rent by number of years to get total rent for lease term.
- Refer to Lease Chart (below) for % to multiply.
- Multiply rents x % to get taxable rents.
Monthly
$1000 per month (20 years)
| Description | Calculation | Total |
| Annual Rent | $1000 x 12 months | $12,000 |
| Total Rents for Lease Term of 20 years | $12,000 x 20 years | $240,000 |
| Total Taxable Rents for 20 years | $240,000 x 57.3% | $137,520 |
Write amount on Lease: Deed Tax $138
Annual
$25,000 annually (30 years)
| Description | Calculation | Total |
| Total Rents for Lease Term of 30 years | $25,000 x 30 years | $750,000 |
| Total Taxable Rents for 30 years | $750,000 x 45.9% | $344,250 |
Write amount on Lease: Deed Tax $344.30
Lease Table
| Lease Term (in Years) | Percentage |
| 1 | 94.30% |
| 2 | 91.60% |
| 3 | 89.50% |
| 4 | 86.60% |
| 5 | 84.30% |
| 6 | 82.00% |
| 7 | 79.70% |
| 8 | 77.70% |
| 9 | 75.50% |
| 10 | 73.60% |
| 11 | 71.70% |
| 12 | 69.90% |
| 13 | 68.00% |
| 14 | 66.40% |
| 15 | 64.70% |
| 16 | 63.10% |
| 17 | 61.60% |
| 18 | 60.10% |
| 19 | 58.70% |
| 20 | 57.30% |
| 21 | 55.60% |
| 22 | 54.70% |
| 23 | 53.00% |
| 24 | 52.30% |
| 25 | 51.10% |
| 26 | 50.00% |
| 27 | 48.90% |
| 28 | 47.80% |
| 29 | 46.86% |
| 30 | 45.90% |
| 31 | 44.90% |
| 32 | 44.01% |
| 33 | 43.12% |
| 34 | 42.26% |
| 35 | 41.42% |
| 36 | 40.61% |
| 37 | 39.83% |
| 38 | 39.06% |
| 39 | 38.33% |
| 40 | 37.61% |
| 41 | 36.77% |
| 42 | 36.24% |
| 43 | 35.59% |
| 44 | 34.96% |
| 45 | 34.35% |
| 46 | 33.74% |
| 47 | 33.17% |
| 48 | 32.60% |
| 49 | 32.09% |
| 50 | 31.52% |
| Lease Term (in Years) | Percentage |
| 51 | 31.00% |
| 52 | 30.50% |
| 53 | 30.01% |
| 54 | 29.53% |
| 55 | 29.07% |
| 56 | 28.62% |
| 57 | 28.18% |
| 58 | 27.76% |
| 59 | 27.34% |
| 60 | 26.94% |
| 61 | 26.54% |
| 62 | 26.16% |
| 63 | 25.78% |
| 64 | 25.42% |
| 65 | 25.06% |
| 66 | 24.71% |
| 67 | 24.37% |
| 68 | 24.04% |
| 69 | 23.72% |
| 70 | 23.40% |
| 71 | 23.09% |
| 72 | 22.80% |
| 73 | 22.51% |
| 74 | 22.22% |
| 75 | 21.94% |
| 76 | 21.67% |
| 77 | 21.40% |
| 78 | 21.14% |
| 79 | 20.87% |
| 80 | 20.64% |
| 81 | 20.39% |
| 82 | 20.15% |
| 83 | 19.92% |
| 84 | 19.69% |
| 85 | 19.47% |
| 86 | 19.25% |
| 87 | 19.04% |
| 88 | 18.83% |
| 89 | 18.62% |
| 90 | 18.42% |
| 91 | 18.22% |
| 92 | 18.03% |
| 93 | 17.84% |
| 94 | 17.66% |
| 95 | 17.47% |
| 96 | 17.29% |
| 97 | 17.12% |
| 98 | 16.95% |
| 99 | 16.78% |
| 100 | 16.62% |
