SN 2007(10)
2007 Legislation Affecting the Application of the Controlling Interest Transfer Tax to Maritime Heritage Land
Purpose: This Special Notice discusses 2007 legislation affecting the controlling interest transfer tax as it applies to the transfer of a controlling interest in an entity that owns land classified as maritime heritage land.
Statutory Authority: Conn. Gen. Stat. §§12-638l, and 12-638n, as amended by 2007 Conn. Pub. Acts 127, §§11 and 12.
Additional Controlling Interest Transfer Tax: An additional controlling interest transfer tax is imposed on the transfer for consideration of a controlling interest in an entity that directly owns an interest in land classified as maritime heritage land. The additional tax applies if a controlling interest in the entity is sold within a period of 10 years from the time the owner first caused the land to be classified as maritime heritage land.
The additional tax shall be imposed at the following rate:
10% of the present true and actual value of the land |
if sold within the first year following the date of classification |
9% of the present true and actual value of the land |
if sold within the second year following the date of classification |
8% of the present true and actual value of the land |
if sold within the third year following the date of classification |
7% of the present true and actual value of the land |
if sold within the fourth year following the date of classification |
6% of the present true and actual value of the land |
if sold within the fifth year following the date of classification |
5% of the present true and actual value of the land |
if sold within the sixth year following the date of classification |
4% of the present true and actual value of the land |
if sold within the seventh year following the date of classification |
3% of the present true and actual value of the land |
if sold within the eighth year following the date of classification |
2% of the present true and actual value of the land |
if sold within the ninth year following the date of classification |
1% of the present true and actual value of the land |
if sold within the tenth year following the date of classification |
No additional tax |
if sold after the tenth year following the date of classification |
Effect of This Document: A Special Notice announces a new policy or practice in response to changes in state or federal laws or regulations or to judicial decisions. A Special Notice indicates an informal interpretation of Connecticut tax law by the Department of Revenue services (DRS).
For Further Information: Call DRS during business hours, Monday through Friday:
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1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), 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 2007(10)
Controlling Interest Transfer Taxes
Issued: 03/05/2008