Under what circumstances would a property be exempt from conveyance tax?

A property inherited by family members is indeed exempt from conveyance tax due to the nature of inheritance transfers. These transactions are considered gifts rather than sales; thus, the state recognizes that when property is passed from one family member to another, there is no exchange of money that would typically trigger a tax obligation. This exemption is designed to ease the financial burden on families dealing with the complexities of estate planning and transfer of assets after a loved one's passing.

The other circumstances, such as short sale transactions or commercial property transfers, typically involve a sale for an exchange of value, which subjects them to conveyance tax. Similarly, properties acquired through lease agreements are not classified as transfers of ownership and would not qualify for an exemption in the same way that inherited property does. Therefore, inheritance is a key element that justifies this exemption from conveyance tax.