SN 2004(6)
Changes to the Real Estate Conveyance Taxes
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An exemption from both the state and municipal real estate conveyance tax for relocation companies;
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A clarification of the “mansion tax” rate, which affects only the state real estate conveyance tax;
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A change that maintains the 0.25% municipal real estate conveyance tax rate for deeds conveying an interest in real property on or after July 1, 2004, but before July 1, 2005; and
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An indefinite extension of the authority that certain municipalities have to impose an additional municipal real estate conveyance tax.
Effective Date: As indicated below.
Statutory Authority: Conn. Gen. Stat. §12-494(a) and (c), as amended by 2004 Conn. Pub. Acts 216, §51; Conn. Gen. Stat. §12-494(b), as amended by 2004 Conn. Pub. Acts 201, §4; and Conn. Gen. Stat. §12-498(a), as amended by 2004 Conn. Pub. Acts 154, §1.
Certain Transfers by Relocation Companies Exempt From Real Estate Conveyance Tax: Conn. Gen. Stat. §12-498(a), which exempts certain transactions from the real estate conveyance tax, was amended to provide a new exemption for certain transfers made by relocation companies. This new provision exempts from state and municipal real estate conveyance taxes any deed conveying residential property where the conveyance occurs not later than six months after the date on which the property was previously conveyed to the transferor as long as the transferor is either:
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An employer that acquired the property from one of its employees under to an employee relocation plan; or
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An entity in the business of purchasing and selling residential property of employees who are being relocated under an employee relocation plan.
Effective for transfers made on or after July 1, 2004.
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One-half of one percent (0.5%) on that portion of consideration up to and including the amount of $800,000; and
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One percent (1%) on that portion of the consideration in excess of $800,000 dollars.
In order to ensure that its original legislative intent was carried out, the General Assembly amended subsection (b)(2) to make it clear that if there is more than one deed, instrument, or writing used to convey a residential estate, the state real estate conveyance tax is imposed on the aggregate consideration, so that, if the aggregate consideration is in excess of $800,000, the 1% rate applies on that portion of the aggregate consideration that is in excess of $800,000. Thus, the increase in real estate conveyance tax that is imposed on transfers of any residential estate in excess of $800,000 applies no matter how many deeds are used to transfer the residential estate.
Authority for Certain Municipalities to Impose Additional Municipal Real Estate Conveyance Tax Rate Extended Indefinitely: Effective May 6, 2004, any targeted investment community, as defined in Conn. Gen. Stat. §32-222, or any municipality in which properties designated as manufacturing plants under Conn. Gen. Stat. §32-75c are located is authorized to impose an additional municipal real estate conveyance tax on deeds conveying an interest in real property on or after July 1, 2004, at the rate of one-fourth of one per cent (0.25%). (The imposition of an additional municipal real estate tax by a municipality was first authorized by 2003 Conn. Pub. Acts 2, §40, which applied to deeds conveying an interest in real property on or after March 15, 2003, but before July 1, 2004.)
For Further Information: Call DRS during business hours, Monday through Friday:
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1-800-382-9463 (in-state), or
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860-297-5962 (from anywhere)
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
SN 2004(6)
Real Estate Conveyance Tax
Issued: 10/15/2004