In-Kind Payment — Credit — Deferral — Limitation

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  1. Upon assumption of title by a receiving entity to property accepted as an in-kind payment, the department shall credit to the donor against the amount of taxes owed the valuation of the qualified property approved in the donor's application. In no case shall any credit allowed by this part be greater than the amount of tax owed, and any excess value shall constitute a gift to the receiving entity.
  2. The department shall defer payment of transfer tax, or portion thereof, that is under review for in-kind payment from the date of receipt of a completed application, so that the tax due, or portion thereof, is exempt from interest and penalties during the pendency of an application. Interest and penalties shall recommence upon the department's denial of the application.
  3. The department shall not during any fiscal year approve in-kind payments that have an aggregate value of more than five million dollars ($5,000,000), unless the governor, on application from the department, permits the department to exceed that limit.


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