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General Assembly Committee Bill No. 5979
January Session, 2025
LCO No. 7034
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT EXEMPTING CONVEYANCES AND SALES OR TRANSFERS
OF CONTROLLING INTEREST TO HOUSING AUTHORITIES FROM
THE REAL ESTATE CONVEYANCE TAX AND THE CONTROLLING
INTEREST TRANSFER TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-498 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2025, and 2
applicable to conveyances made on or after July 1, 2025): 3
(a) The tax imposed by section 12-494 shall not apply to: 4
(1) Deeds that this state is prohibited from taxing under the 5
Constitution or laws of the United States; 6
(2) Deeds that secure a debt or other obligation; 7
(3) Deeds to which this state or any of its political subdivisions or its 8
or their respective agencies is a party; 9
(4) Tax deeds; 10
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(5) Deeds of release of property that is security for a debt or other 11
obligation; 12
(6) Deeds of partition; 13
(7) Deeds made pursuant to mergers of corporations; 14
(8) Deeds made by a subsidiary corporation to its parent corporation 15
for no consideration other than the cancellation or surrender of the 16
subsidiary's stock; 17
(9) Deeds made pursuant to a decree of the Superior Court under 18
section 46b-81, 49-24 or 52-495 or pursuant to a judgment of foreclosure 19
by market sale under section 49-24 or pursuant to a judgment of loss 20
mitigation under section 49-30t or 49-30u; 21
(10) Deeds, when the consideration for the interest or property 22
conveyed is less than two thousand dollars; 23
(11) Deeds between affiliated corporations, provided both of such 24
corporations are exempt from taxation pursuant to paragraph (2), (3) or 25
(25) of Section 501(c) of the Internal Revenue Code of 1986, or any 26
subsequent corresponding internal revenue code of the United States, 27
as amended from time to time; 28
(12) Deeds made by a corporation that is exempt from taxation 29
pursuant to paragraph (3) of Section 501(c) of the Internal Revenue Code 30
of 1986, or any subsequent corresponding internal revenue code of the 31
United States, as amended from time to time, to any corporation which 32
is exempt from taxation pursuant to [said] paragraph (3) of said Section 33
501(c); 34
(13) Deeds made to any nonprofit organization that is organized for 35
the purpose of holding undeveloped land in trust for conservation or 36
recreation purposes; 37
(14) Deeds between spouses; 38
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(15) Deeds of property for the Adriaen's Landing site or the stadium 39
facility site, for purposes of the overall project, each as defined in section 40
32-651; 41
(16) Land transfers made on or after July 1, 1998, to a water company, 42
as defined in section 16-1, provided the land is classified as class I or 43
class II land, as defined in section 25-37c, after such transfer; 44
(17) Transfers or conveyances to effectuate a mere change of identity 45
or form of ownership or organization, where there is no change in 46
beneficial ownership; 47
(18) Conveyances of residential property that occur not later than six 48
months after the date on which the property was previously conveyed 49
to the transferor if the transferor is (A) an employer that acquired the 50
property from an employee pursuant to an employee relocation plan, or 51
(B) an entity in the business of purchasing and selling residential 52
property of employees who are being relocated pursuant to such a plan; 53
(19) Deeds in lieu of foreclosure that transfer the transferor's principal 54
residence; 55
(20) Any instrument that transfers the transferor's principal residence 56
where the gross purchase price is insufficient to pay the sum of (A) 57
mortgages encumbering the property transferred, and (B) any real 58
property taxes and municipal utility or other charges for which the 59
municipality may place a lien on the property and that have priority 60
over the mortgages encumbering the property transferred; 61
(21) Deeds that transfer the transferor's principal residence, where 62
such residence has a concrete foundation that has deteriorated due to 63
the presence of pyrrhotite and such transferor has obtained a written 64
evaluation from a professional engineer licensed pursuant to chapter 65
391 indicating that the foundation of such residence was made with 66
defective concrete. The exemption authorized under this subdivision 67
shall (A) apply to the first transfer of such residence after such written 68
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evaluation has been obtained, and (B) not be available to a transferor 69
who has received financial assistance to repair or replace such 70
foundation from the Crumbling Foundations Assistance Fund 71
established under section 8-441; [and] 72
(22) Deeds of property with dwelling units where all such units are 73
deed restricted as affordable housing, as defined in section 8-39a. For 74
deeds of property with dwelling units where a portion of such units are 75
subject to such deed restrictions, the exemption authorized under this 76
subdivision shall apply only with respect to the dwelling units subject 77
to such deed restrictions and such exemption shall be reduced 78
proportionally based on the number of units not subject to such deed 79
restrictions; and 80
(23) Deeds made to a public housing authority in the state. 81
(b) The tax imposed by subdivision (1) of subsection (a) of section 12-82
494 shall not apply to: 83
(1) Deeds of the principal residence of any person approved for 84
assistance under section 12-129b or 12-170aa for the current assessment 85
year of the municipality in which such person resides or to any such 86
transfer that occurs within fifteen months of the completion of any 87
municipal assessment year for which such person qualified for such 88
assistance; 89
(2) Deeds of property located in an area designated as an enterprise 90
zone in accordance with section 32-70; and 91
(3) Deeds of property located in an entertainment district designated 92
under section 32-76 or established under section 2 of public act 93-311. 93
Sec. 2. Section 12-638b of the general statutes is repealed and the 94
following is substituted in lieu thereof (Effective July 1, 2025, and 95
applicable to sales or transfers occurring on or after July 1, 2025): 96
(a) (1) There is hereby imposed a tax on the sale or transfer of a 97
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controlling interest in any entity [which] that possesses, directly or 98
indirectly, an interest in real property in this state when the present true 99
and actual value of the interest in real property equals or exceeds two 100
thousand dollars, payable by the person selling or transferring such 101
controlling interest, at the rate of one and eleven one-hundredths of one 102
per cent of the present true and actual value of the interest in real 103
property possessed, directly or indirectly, by such entity. 104
(2) A taxable sale or transfer of a controlling interest may occur in one 105
transaction or in a series of transactions. Transactions [which] that occur 106
within six months of each other are presumed, unless shown to the 107
contrary, to be a series of transactions. 108
(3) A taxable sale or transfer of a controlling interest may be made by 109
one seller or transferor or may be made by a group of sellers or 110
transferors acting in concert. Sellers or transferors who are related to 111
each other by blood or marriage are presumed, unless shown to the 112
contrary, to be acting in concert. 113
(b) The tax imposed by subsection (a) of this section [(1)] shall not 114
apply to (1) any sale or transfer of a controlling interest in any entity to 115
the extent such entity possesses, directly or indirectly, an interest in real 116
property located in an area of any municipality designated as an 117
enterprise zone in accordance with section 32-70, but shall apply to the 118
extent such entity possesses, directly or indirectly, an interest in real 119
property in this state located outside such area designated as such an 120
enterprise zone, [and] (2) [shall not apply to] any sale or transfer of a 121
controlling interest in any entity to effectuate a mere change of identity 122
or form of ownership or organization where there is no change in 123
beneficial ownership, or (3) any sale or transfer of a controlling interest 124
in any entity to a public housing authority in the state. 125
This act shall take effect as follows and shall amend the following
sections:
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Section 1 July 1, 2025, and
applicable to conveyances
made on or after July 1,
2025
12-498
Sec. 2 July 1, 2025, and
applicable to sales or
transfers occurring on or
after July 1, 2025
12-638b
Statement of Purpose:
To exempt (1) conveyances to a public housing authority in the state
from the real estate conveyance tax, and (2) sales or transfers of
controlling interest in an entity to a public housing authority in the state
from the controlling interest transfer tax.
[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.]
Co-Sponsors: REP. ROJAS, 9th Dist.
H.B. 5979