DRS: SN 92(17), Legislative Changes Affecting Real Estate Conveyance Taxes

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

SN 92(17)

Legislative Changes Affecting Real Estate Conveyance Taxes


PURPOSE: This Special Notice describes legislative changes that affect the State and municipal real estate conveyance taxes.


STATUTORY AUTHORITY: 1991 Conn. Pub. Acts 356, 1991 Conn. Pub. Acts 403, 1992 Conn. Pub. Acts 57 and 1992 Conn. Pub. Acts 92.


EFFECTIVE DATES: As specified below.


CERTAIN DEEDS IN LIEU OF FORECLOSURE TO BE TAXED AT LOWER RATE: Under Conn. Gen. Stat. 12-494 (b), as amended by 1991 Conn. Pub. Acts 356, where mortgage payments have been delinquent for not less than 6 months, any deed, instrument or other writing whereby the mortgaged realty is granted, assigned, transferred or otherwise conveyed by the delinquent mortgagor to a corporation that is a financial institution holding such delinquent mortgage shall be taxed at the rate of one-half of one per cent of the consideration received. The unpaid mortgage debt plus unpaid accrued interest shall be deemed to be the consideration received by the mortgagor.

A financial institution means a corporation that is a bank, bank and trust company, trust company, savings bank, savings and loan association, building and loan association or credit union, whether organized pursuant to the laws of this or any other State of the United States or pursuant to the laws of the United States.

Under Conn. Gen. Stat. 12-494 (b), as amended by 1992 Conn. Pub. Acts 57, where mortgage payments have been delinquent for not less than 6 months, any deed, instrument or other writing whereby the mortgaged realty is granted, assigned, transferred or otherwise conveyed by the delinquent mortgagor to a corporation that is a subsidiary of a financial institution, which corporation or subsidiary holds such delinquent mortgage, shall be taxed at the rate of one-half of one per cent of the consideration received. The unpaid mortgage debt plus unpaid accrued interest shall be deemed to be the consideration received by the mortgagor.

The amendment made to Conn. Gen. Stat. 12-494 (b) by 1992 Conn. Pub. Acts 57 is applicable to conveyances made on or after July 1, 1992.


EXEMPTION OF DEEDS, INSTRUMENTS OR OTHER WRITINGS IN CONNECTION WITH CERTAIN REORGANIZATIONS OF MUTUAL SAVINGS BANKS: Under 1992 Conn. Pub. Acts 92, any deed, instrument or other writing whereby the realty of a mutual savings institution is granted, assigned, transferred or otherwise conveyed to a reorganized capital stock savings bank pursuant to Conn. Gen. Stat. 36-142aa (a) or to a reorganized capital stock savings and loan association pursuant to Conn. Gen. Stat. 36-142aa (b) shall be exempt from State and municipal real estate conveyance taxes.

1992 Conn. Pub. Acts 92 is applicable to conveyances made on or after May 20, 1992.

Until the Real Estate Conveyance Tax Return (Form OP-236) is revised, exemption from tax shall be claimed by entering Exemption Code 15 on Line 17C.


EXEMPTION OF DEEDS, INSTRUMENTS OR OTHER WRITINGS GRANTING, ASSIGNING, TRANSFERRING OR OTHERWISE CONVEYING REALTY TO CERTAIN NONPROFIT ORGANIZATIONS: Under Conn. Gen. Stat. 12-498 (a) (16), as amended by 1991 Conn. Pub. Acts 403, any deed, instrument or other writing whereby realty is granted, assigned, transferred or otherwise conveyed to a nonprofit organization that is organized for the purpose of holding undeveloped land in trust for conservation or recreation purposes shall be exempt from State and municipal real estate conveyance taxes.

The amendment made to Conn. Gen. Stat. 12-498 (a) (16) by 1991 Conn. Pub. Acts 403 is effective for conveyances made on or after July 1, 1992.

Until the Real Estate Conveyance Tax Return (Form OP-236) is revised, exemption from tax shall be claimed by entering Exemption Code 16 on Line 17C.


PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page at http://www.ct.gov/drs. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.


SN 92(17)
Real estate conveyance tax
Issued 7/13/92