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statutes is repealed and the following is substituted in lieu thereof 2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