Connecticut 2021 Regular Session

Connecticut House Bill HB06630 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	9		General Assembly Raised Bill No. 6630
8	10		January Session, 2021
9	11		LCO No. 4872
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12	14		Referred to Committee on FINANCE, REVENUE AND
13	15		BONDING
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15	17
16	18		Introduced by:
17	19		(FIN)
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21	24		AN ACT CONCERNING TH E RATE OF THE REAL ESTATE
22	25		CONVEYANCE TAX ON CE RTAIN CONVEYANCES.
23	26		Be it enacted by the Senate and House of Representatives in General
24	27		Assembly convened:
25	28
26	29		Section 1. Section 12-494 of the general statutes is repealed and the 1
27	30		following is substituted in lieu thereof (Effective July 1, 2021): 2
28	31		(a) There is imposed a tax on each deed, instrument or writing, 3
29	32		whereby any lands, tenements or other realty is granted, assigned, 4
30	33		transferred or otherwise conveyed to, or vested in, the purchaser, or any 5
31	34		other person by such purchaser's direction, when the consideration for 6
32	35		the interest or property conveyed equals or exceeds two thousand 7
33	36		dollars: 8
34	37		(1) Subject to the provisions of [subsection] subsections (b) and (c) of 9
35	38		this section, at the rate of three-quarters of one per cent of the 10
36	39		consideration for the interest in real property conveyed by such deed, 11
37	40		instrument or writing, the revenue from which shall be remitted by the 12
38	41		town clerk of the municipality in which such tax is paid, not later than 13 Raised Bill No. 6630
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45	47		ten days following receipt thereof, to the Commissioner of Revenue 14
46	48		Services for deposit to the credit of the state General Fund; and 15
47	49		(2) At the rate of one-fourth of one per cent of the consideration for 16
48	50		the interest in real property conveyed by such deed, instrument or 17
49	51		writing, provided the amount imposed under this subdivision shall 18
50	52		become part of the general revenue of the municipality in accordance 19
51	53		with section 12-499. 20
52	54		(b) The rate of tax imposed under subdivision (1) of subsection (a) of 21
53	55		this section shall, in lieu of the rate under said subdivision (1), be 22
54	56		imposed on certain conveyances as follows: 23
55	57		(1) In the case of any conveyance of real property [which] that at the 24
56	58		time of such conveyance is used for any purpose other than residential 25
57	59		use, except unimproved land, the tax under said subdivision (1) shall be 26
58	60		imposed at the rate of one and one-quarter per cent of the consideration 27
59	61		for the interest in real property conveyed. For the purposes of this 28
60	62		subdivision, "unimproved land" includes land designated as farm, 29
61	63		forest or open space land; 30
62	64		(2) In the case of any conveyance in which the real property conveyed 31
63	65		is a residential estate, including a primary dwelling and any auxiliary 32
64	66		housing or structures, regardless of the number of deeds, instruments 33
65	67		or writings used to convey such residential real estate, for which the 34
66	68		consideration or aggregate consideration, as the case may be, in such 35
67	69		conveyance is eight hundred thousand dollars or more, the tax under 36
68	70		said subdivision (1) shall be imposed: 37
69	71		(A) At the rate of three-quarters of one per cent on that portion of 38
70	72		such consideration up to and including the amount of eight hundred 39
71	73		thousand dollars; 40
72	74		(B) Prior to July 1, 2020, at the rate of one and one-quarter per cent on 41
73	75		that portion of such consideration in excess of eight hundred thousand 42
74	76		dollars; and 43 Raised Bill No. 6630
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81	82		(C) [On] Except as provided in subsection (c) of this section, on and 44
82	83		after July 1, 2020, (i) at the rate of one and one-quarter per cent on that 45
83	84		portion of such consideration in excess of eight hundred thousand 46
84	85		dollars up to and including the amount of two million five hundred 47
85	86		thousand dollars, and (ii) at the rate of two and one-quarter per cent on 48
86	87		that portion of such consideration in excess of two million five hundred 49
87	88		thousand dollars; and 50
88	89		(3) In the case of any conveyance in which real property on which 51
89	90		mortgage payments have been delinquent for not less than six months 52
90	91		is conveyed to a financial institution or its subsidiary that holds such a 53
91	92		delinquent mortgage on such property, the tax under said subdivision 54
92	93		(1) shall be imposed at the rate of three-quarters of one per cent of the 55
93	94		consideration for the interest in real property conveyed. [For the 56
94	95		purposes of subdivision (1) of this subsection, "unimproved land" 57
95	96		includes land designated as farm, forest or open space land.] 58
96	97		(c) (1) On and after July 1, 2021, in the case of any conveyance of real 59
97	98		property described under subdivision (2) of subsection (b) of this section 60
98	99		for which the consideration or aggregate consideration, as the case may 61
99	100		be, in such conveyance is eight hundred thousand dollars or more, and 62
100	101		such conveyance is a new home conveyed by (A) a new home 63
101	102		construction contractor with a current valid certificate, or (B) any 64
102	103		partnership, limited partnership, limited liability partnership, joint 65
103	104		venture, trust, limited liability company or association, that has as one 66
104	105		of its purposes the ownership of housing, the tax under subdivision (1) 67
105	106		of subsection (a) of this section shall be imposed: 68
106	107		(i) At the rate of three-quarters of one per cent on that portion of such 69
107	108		consideration up to and including the amount of eight hundred 70
108	109		thousand dollars; and 71
109	110		(ii) At the rate of one and one-quarter per cent on that portion of such 72
110	111		consideration in excess of eight hundred thousand dollars. 73
111		-	(2) As used in this subsection, "new home" and "new home 74 Raised Bill No. 6630
	112	+	(2) As used in this subsection, "new home" and "new home 74
	113	+	construction contractor" have the same meanings as provided in section 75 Raised Bill No. 6630
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118		-	construction contractor" have the same meanings as provided in section 75
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119	119		20-417a. 76
120	120		[(c)] (d) In addition to the tax imposed under subsection (a) of this 77
121	121		section, any targeted investment community, as defined in section 32-78
122	122		222, or any municipality in which properties designated as 79
123	123		manufacturing plants under section 32-75c are located, may, on or after 80
124	124		March 15, 2003, impose an additional tax on each deed, instrument or 81
125	125		writing, whereby any lands, tenements or other realty is granted, 82
126	126		assigned, transferred or otherwise conveyed to, or vested in, the 83
127	127		purchaser, or any other person by [his] the purchaser's direction, when 84
128	128		the consideration for the interest or property conveyed equals or 85
129	129		exceeds two thousand dollars, which additional tax shall be at a rate of 86
130	130		up to one-fourth of one per cent of the consideration for the interest in 87
131	131		real property conveyed by such deed, instrument or writing. The 88
132	132		revenue from such additional tax shall become part of the general 89
133	133		revenue of the municipality in accordance with section 12-499. 90
134	134		This act shall take effect as follows and shall amend the following
135	135		sections:
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137	137		Section 1 July 1, 2021 12-494
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139		-	FIN Joint Favorable
	139	+	Statement of Purpose:
	140	+	To exempt new homes conveyed by certain conveyors from the portion
	141	+	of the real estate conveyance tax imposed on consideration in excess of
	142	+	two million five hundred thousand dollars.
	143	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	144	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	145	+	underlined.]
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