The following Q and A has been compiled by C2:
Questions specific to the CFA Transfer Fee (additional questions for the CFA General Q&A document):
1. What constitutes a “Transfer” under the CFA?
A transfer fee applies when two standard are met, 1) a change of cabin ownership occurs, and 2) a new permit is issued due to a change of permit holder.
2. I recently changed my legal name and will require a new permit issued; is this transaction subject to a Transfer Fee?
No, a change of cabin ownership has not occurred so a transfer fee does not apply. While the transfer fee does not apply for simple name changes, the USFS may charge a reasonable administrative fee to handle this transaction.
3. If we transfer ownership of our cabin into a family trust, will a Transfer Fee apply?
Yes, a transfer fee of $1,000 would apply because a new permit would be re-issued and a transfer of ownership has occurred from your personal estate to the family trust, a separate estate. (discuss & verify this understanding)
4. If beneficiaries of our family trust change in the future, will this be subject to a Transfer Fee?
As a general rule, a transfer fee would be assessed only if the permit holder changes. If the trust beneficiaries other than the permit holder change, the permit is not re-issued, therefore a transfer fee is not assessed. If the permit holder (Trust?) name changes, a permit would be re-issued and a transfer fee of $1,000 would apply. (discuss & verify this understanding)
5. We inherited our cabin from our parents, will a Transfer Fee apply? Y
es, a change of ownership has occurred and a new permit is required, so a transfer fee of $1,000 would be assessed.
6. If we sold our cabin to a family member, would a transfer fee apply?
Yes, a change of cabin ownership has occurred and a new permit is required, so a transfer fee would apply. A fee of $1,000 applies to all transfers, plus an additional surcharge amount is assessed for sale amounts greater than $250,000.
7. When cabin is sold, how will the USFS verify the sales price?
The USFS will determine the final administrative process. We anticipate this process would require the cabin seller to submit a signed affidavit stipulating the cabin sale amount and that the stated sale amount represents the full cabin sales value conveyed, subject to fine or prosecution under federal law. In addition, a proof of sale such as a Bill of Sale, Deed, or Closing Statement with the sales amount listed may be required.
Questions regarding Fractional Cabin Ownership:
The following questions attempt to deal with fractional cabin ownerships. The USFS requires a permit to be held by a single party, which suggests the USFS does not recognize fractional cabin ownership and likely doesn’t want to deal with it. With this in mind, we need the transfer fee administration to remain simple and be closely aligned with this position. The permit holder has full responsibility for the permit terms and conditions, even though there may be extended family or non-family ownership of the cabin. (discuss & verify this position)
8. While I am listed as the permit holder, another family member is a 50% co-owner of our cabin. If the co-owner sold their interest to another party, would this transaction be submit to a Transfer Fee?
No, a new permit is not required because the permit holder did not change in this example.
9. (follow-up to question #8) If, at a later date, I sell my 50% interest in the cabin to another party, would this transaction be subject to a Transfer Fee?
Yes, a change of cabin ownership has occurred and a new permit is issued to in the name of the new permit holder, so a transfer fee would apply.
10. (follow-up to question #9) Is the transfer fee assessed against the sale amount of my 50% interest, or the full sales value of the cabin?
The intent of the CFA is to assess transfer fees against the full sales value of the cabin. In this case, the full sales value could be imputed from the sale amount of your 50% interest. If you sold your 50% interest for $60,000, the imputed full sales value of the cabin would be $120,000. Because this amount falls below the $250,000 threshold, a transfer fee of $1,000 would be assessed. If the imputed full sales value of the cabin exceeded $250,000, a transfer fee surcharge would be assessed, in addition to the base $1,000 transfer fee.