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General Assembly Raised Bill No. 6630
January Session, 2021
LCO No. 4872
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING TH E RATE OF THE REAL ESTATE
CONVEYANCE TAX ON CE RTAIN CONVEYANCES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-494 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2021): 2
(a) There is imposed a tax on each deed, instrument or writing, 3
whereby any lands, tenements or other realty is granted, assigned, 4
transferred or otherwise conveyed to, or vested in, the purchaser, or any 5
other person by such purchaser's direction, when the consideration for 6
the interest or property conveyed equals or exceeds two thousand 7
dollars: 8
(1) Subject to the provisions of [subsection] subsections (b) and (c) of 9
this section, at the rate of three-quarters of one per cent of the 10
consideration for the interest in real property conveyed by such deed, 11
instrument or writing, the revenue from which shall be remitted by the 12
town clerk of the municipality in which such tax is paid, not later than 13 Raised Bill No. 6630
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ten days following receipt thereof, to the Commissioner of Revenue 14
Services for deposit to the credit of the state General Fund; and 15
(2) At the rate of one-fourth of one per cent of the consideration for 16
the interest in real property conveyed by such deed, instrument or 17
writing, provided the amount imposed under this subdivision shall 18
become part of the general revenue of the municipality in accordance 19
with section 12-499. 20
(b) The rate of tax imposed under subdivision (1) of subsection (a) of 21
this section shall, in lieu of the rate under said subdivision (1), be 22
imposed on certain conveyances as follows: 23
(1) In the case of any conveyance of real property [which] that at the 24
time of such conveyance is used for any purpose other than residential 25
use, except unimproved land, the tax under said subdivision (1) shall be 26
imposed at the rate of one and one-quarter per cent of the consideration 27
for the interest in real property conveyed. For the purposes of this 28
subdivision, "unimproved land" includes land designated as farm, 29
forest or open space land; 30
(2) In the case of any conveyance in which the real property conveyed 31
is a residential estate, including a primary dwelling and any auxiliary 32
housing or structures, regardless of the number of deeds, instruments 33
or writings used to convey such residential real estate, for which the 34
consideration or aggregate consideration, as the case may be, in such 35
conveyance is eight hundred thousand dollars or more, the tax under 36
said subdivision (1) shall be imposed: 37
(A) At the rate of three-quarters of one per cent on that portion of 38
such consideration up to and including the amount of eight hundred 39
thousand dollars; 40
(B) Prior to July 1, 2020, at the rate of one and one-quarter per cent on 41
that portion of such consideration in excess of eight hundred thousand 42
dollars; and 43 Raised Bill No. 6630
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(C) [On] Except as provided in subsection (c) of this section, on and 44
after July 1, 2020, (i) at the rate of one and one-quarter per cent on that 45
portion of such consideration in excess of eight hundred thousand 46
dollars up to and including the amount of two million five hundred 47
thousand dollars, and (ii) at the rate of two and one-quarter per cent on 48
that portion of such consideration in excess of two million five hundred 49
thousand dollars; and 50
(3) In the case of any conveyance in which real property on which 51
mortgage payments have been delinquent for not less than six months 52
is conveyed to a financial institution or its subsidiary that holds such a 53
delinquent mortgage on such property, the tax under said subdivision 54
(1) shall be imposed at the rate of three-quarters of one per cent of the 55
consideration for the interest in real property conveyed. [For the 56
purposes of subdivision (1) of this subsection, "unimproved land" 57
includes land designated as farm, forest or open space land.] 58
(c) (1) On and after July 1, 2021, in the case of any conveyance of real 59
property described under subdivision (2) of subsection (b) of this section 60
for which the consideration or aggregate consideration, as the case may 61
be, in such conveyance is eight hundred thousand dollars or more, and 62
such conveyance is a new home conveyed by (A) a new home 63
construction contractor with a current valid certificate, or (B) any 64
partnership, limited partnership, limited liability partnership, joint 65
venture, trust, limited liability company or association, that has as one 66
of its purposes the ownership of housing, the tax under subdivision (1) 67
of subsection (a) of this section shall be imposed: 68
(i) At the rate of three-quarters of one per cent on that portion of such 69
consideration up to and including the amount of eight hundred 70
thousand dollars; and 71
(ii) At the rate of one and one-quarter per cent on that portion of such 72
consideration in excess of eight hundred thousand dollars. 73
(2) As used in this subsection, "new home" and "new home 74
construction contractor" have the same meanings as provided in section 75 Raised Bill No. 6630
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20-417a. 76
[(c)] (d) In addition to the tax imposed under subsection (a) of this 77
section, any targeted investment community, as defined in section 32-78
222, or any municipality in which properties designated as 79
manufacturing plants under section 32-75c are located, may, on or after 80
March 15, 2003, impose an additional tax on each deed, instrument or 81
writing, whereby any lands, tenements or other realty is granted, 82
assigned, transferred or otherwise conveyed to, or vested in, the 83
purchaser, or any other person by [his] the purchaser's direction, when 84
the consideration for the interest or property conveyed equals or 85
exceeds two thousand dollars, which additional tax shall be at a rate of 86
up to one-fourth of one per cent of the consideration for the interest in 87
real property conveyed by such deed, instrument or writing. The 88
revenue from such additional tax shall become part of the general 89
revenue of the municipality in accordance with section 12-499. 90
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 12-494
Statement of Purpose:
To exempt new homes conveyed by certain conveyors from the portion
of the real estate conveyance tax imposed on consideration in excess of
two million five hundred thousand dollars.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]