Connecticut 2024 Regular Session

Connecticut Senate Bill SB00266 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	LCO No. 1869 1 of 4
4	4
5	5	General Assembly Raised Bill No. 266
6	6	February Session, 2024
7	7	LCO No. 1869
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9	9
10	10	Referred to Committee on HOUSING
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12	12
13	13	Introduced by:
14	14	(HSG)
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19	19	AN ACT INCREASING THE CONVEYANCE TAX FOR CERTAIN HOME
20	20	SALES.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 12-494 of the 2024 supplement to the general 1
25	25	statutes is repealed and the following is substituted in lieu thereof 2
26	26	(Effective October 1, 2024): 3
27	27	(a) There is imposed a tax on each deed, instrument or writing, 4
28	28	whereby any lands, tenements or other realty is granted, assigned, 5
29	29	transferred or otherwise conveyed to, or vested in, the purchaser, or any 6
30	30	other person by such purchaser's direction, when the consideration for 7
31	31	the interest or property conveyed equals or exceeds two thousand 8
32	32	dollars: 9
33	33	(1) Subject to the provisions of [subsection (b)] subsections (b) and (c) 10
34	34	of this section, at the rate of three-quarters of one per cent of the 11
35	35	consideration for the interest in real property conveyed by such deed, 12
36	36	instrument or writing, the revenue from which shall be remitted by the 13
37	37	town clerk of the municipality in which such tax is paid, not later than 14
38	38	ten days following receipt thereof, to the Commissioner of Revenue 15 Raised Bill No. 266
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40	40
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42	42	LCO No. 1869 2 of 4
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44	44	Services for deposit to the credit of the state General Fund; and 16
45	45	(2) At the rate of one-fourth of one per cent of the consideration for 17
46	46	the interest in real property conveyed by such deed, instrument or 18
47	47	writing, provided the amount imposed under this subdivision shall 19
48	48	become part of the general revenue of the municipality in accordance 20
49	49	with section 12-499. 21
50	50	(b) The rate of tax imposed under subdivision (1) of subsection (a) of 22
51	51	this section shall, in lieu of the rate under said subdivision (1), be 23
52	52	imposed on certain conveyances as follows: 24
53	53	(1) In the case of any conveyance of real property which at the time 25
54	54	of such conveyance is used for any purpose other than residential use, 26
55	55	except unimproved land, the tax under said subdivision (1) shall be 27
56	56	imposed at the rate of one and one-quarter per cent of the consideration 28
57	57	for the interest in real property conveyed. For the purposes of this 29
58	58	subdivision, "unimproved land" includes land designated as farm, 30
59	59	forest or open space land; 31
60	60	(2) [In] Except as provided in subsection (c) of this section, in the case 32
61	61	of any conveyance in which the real property conveyed is a residential 33
62	62	estate, including a primary dwelling and any auxiliary housing or 34
63	63	structures, regardless of the number of deeds, instruments or writings 35
64	64	used to convey such residential real estate, for which the consideration 36
65	65	or aggregate consideration, as the case may be, in such conveyance is 37
66	66	eight hundred thousand dollars or more, the tax under said subdivision 38
67	67	(1) shall be imposed: 39
68	68	(A) At the rate of three-quarters of one per cent on that portion of 40
69	69	such consideration up to and including the amount of eight hundred 41
70	70	thousand dollars; 42
71	71	(B) Prior to July 1, 2020, at the rate of one and one-quarter per cent on 43
72	72	that portion of such consideration in excess of eight hundred thousand 44
73	73	dollars; and 45 Raised Bill No. 266
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76	76
77	77	LCO No. 1869 3 of 4
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79	79	(C) On and after July 1, 2020, (i) at the rate of one and one-quarter per 46
80	80	cent on that portion of such consideration in excess of eight hundred 47
81	81	thousand dollars up to and including the amount of two million five 48
82	82	hundred thousand dollars, and (ii) at the rate of two and one-quarter 49
83	83	per cent on that portion of such consideration in excess of two million 50
84	84	five hundred thousand dollars; and 51
85	85	(3) In the case of any conveyance in which real property on which 52
86	86	mortgage payments have been delinquent for not less than six months 53
87	87	is conveyed to a financial institution or its subsidiary that holds such a 54
88	88	delinquent mortgage on such property, the tax under said subdivision 55
89	89	(1) shall be imposed at the rate of three-quarters of one per cent of the 56
90	90	consideration for the interest in real property conveyed. [For the 57
91	91	purposes of subdivision (1) of this subsection, "unimproved land" 58
92	92	includes land designated as farm, forest or open space land.] 59
93	93	(c) On and after October 1, 2024, for a purchaser that is not an 60
94	94	individual, in the case of any conveyance in which the real property 61
95	95	conveyed is residential real estate, regardless of the number of deeds, 62
96	96	instruments or writings used to convey such residential real estate, in 63
97	97	lieu of the rate under subdivision (1) of subsection (a) of this section or 64
98	98	subdivision (2) of subsection (b) of this section, the rate of tax imposed 65
99	99	on such purchaser of the real property shall be: 66
100	100	(1) At the rate of one and three-quarters per cent on that portion of 67
101	101	such consideration up to and including the amount of eight hundred 68
102	102	thousand dollars; and 69
103	103	(2) At the rate of two and one-quarter per cent on that portion of such 70
104	104	consideration in excess of eight hundred thousand dollars. 71
105	105	[(c)] (d) In addition to the tax imposed under subsection (a) of this 72
106	106	section, any targeted investment community, as defined in section 32-73
107	107	222, or any municipality in which properties designated as 74
108	108	manufacturing plants under section 32-75c are located, may, on or after 75
109	109	March 15, 2003, impose an additional tax on each deed, instrument or 76
110	110	writing, whereby any lands, tenements or other realty is granted, 77 Raised Bill No. 266
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112	112
113	113
114	114	LCO No. 1869 4 of 4
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116	116	assigned, transferred or otherwise conveyed to, or vested in, the 78
117	117	purchaser, or any other person by such purchaser's direction, when the 79
118	118	consideration for the interest or property conveyed equals or exceeds 80
119	119	two thousand dollars, which additional tax shall be at a rate of up to 81
120	120	one-fourth of one per cent of the consideration for the interest in real 82
121	121	property conveyed by such deed, instrument or writing. The revenue 83
122	122	from such additional tax shall become part of the general revenue of the 84
123	123	municipality in accordance with section 12-499. 85
124	124	[(d)] (e) On and after July 1, 2025, the Comptroller shall transfer from 86
125	125	the General Fund to the Housing Trust Fund established under section 87
126	126	8-336o, any revenue received by the state each fiscal year in excess of 88
127	127	three hundred million dollars from the tax imposed under subdivision 89
128	128	(1) of subsection (a) and subsections (b) [and (c)] to (d), inclusive, of this 90
129	129	section. On and after July 1, 2026, the threshold amount in this 91
130	130	subsection shall be adjusted annually by the percentage increase in 92
131	131	inflation. As used in this subdivision, "increase in inflation" means the 93
132	132	increase in the consumer price index for all urban consumers during the 94
133	133	preceding calendar year, calculated on a December over December 95
134	134	basis, using data reported by the United States Bureau of Labor 96
135	135	Statistics. 97
136	136	This act shall take effect as follows and shall amend the following
137	137	sections:
138	138
139	139	Section 1 October 1, 2024 12-494
140	140
141	141	Statement of Purpose:
142	142	To increase the state conveyance tax upon residential properties sold to
143	143	buyers who are not individuals.
144	144	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
145	145	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
146	146	underlined.]