February 3, 1987
John R. Steele
Aurora County States Attorney
Plankinton, South Dakota 57368
OFFICIAL OPINION NO. 87-03
Transfer fee exemption
Dear Mr. Steele:
You have requested an official opinion from this Office based upon the following factual information:
FACTS:
The Federal Land Bank of Omaha has acquired, either through
foreclosure or by transfer in lieu of foreclosure, various agricultural properties located in Aurora County, South Dakota. It has recently resold two of these properties to private individuals.
The Deeds conveying the properties to the new purchasers were prepared by Land Bank's attorneys and are clearly marked "Exempt from Transfer Fee." These Deeds have been presented to the Aurora County Register of Deeds for recordation, and, in reliance on the claim of exemption, the Register of Deeds has recorded them without collection of any transfer fee imposed by SDCL 43-4-21. After a question was raised by a private citizen as to the matter, the Register of Deeds now questions whether such transfers are, in fact, exempt from the transfer fee.
I have spoken by telephone with one of the staff attorneys of the Federal Land Bank. He has stated to me that the Federal Land Bank claims to be exempt from the transfer fee pursuant to SDCL 43-4-22, as an instrumentality or agency of the United States of America. He has cited me to Section 201 of the Farm Credit Amendments Act, PL 99-205.
Based upon these facts, you have asked the following question.
QUESTION:
Is a Federal Land Bank, such as the Federal Land Bank of Omaha, an instrumentality of the United States of America for purposes of the exemption to the South Dakota transfer fee which would otherwise be imposed by SDCL 43-4-21?
SDCL §43-4-21 provides:
A fee is hereby imposed at the rate of fifty cents for each five hundred dollars of value or fraction thereof upon the privilege of transferring title to real property in the state of South Dakota, which fee shall be paid by the grantor.
SDCL §43-4-22 provides, in pertinent part, as follows:
The fee imposed by §43-4-21 does not apply to any transfer of title:
...
(2) By the United States of America, this state, or any instrumentality, agency, or political subdivision of either;
12 U.S.C.A. §2011 provides in pertinent part:
The Federal land banks established pursuant to section 4 of the Federal Farm Loan Act, as amended, shall continue as federally chartered instrumentalities of the United States.
12 U.S.C. 2031 provides in pertinent part:
Each Federal land association chartered under section 7 of the Federal Farm Loan Act, as amended, shall continue as a federally chartered instrumentality of the United States.
In view of the foregoing statutes, it is my opinion that the Federal Land Bank of Omaha is an instrumentality of the United States of America and is, therefore, exempt from the transfer fee imposed by §43-4-21.
Sincerely,
Roger A. Tellinghuisen
ATTORNEY GENERAL
