CHAPTER 223
REAL ESTATE CONVEYANCE TAX
Table of Contents
Sec. 12-494. Imposition of tax on conveyances of real property for consideration. One part payable to state and the other to municipality in which paid.
Sec. 12-504a. Conveyance tax on sale or transfer of land classified as farm, forest or open space land.
Sec. 12-504c. Excepted transfers.
Sec. 12-504d. Appeals.
Sec. 12-504e. Conveyance tax applicable on change of use or classification of land.
Sec. 12-504f. Classification of land classified as farm, forest or open space personal to owner. Certificate of classification.
Sec. 12-504h. Termination of classification as farm, forest or open space land.
Sec. 12-494. Imposition of tax on conveyances of real property for consideration. One part payable to state and the other to municipality in which paid. (a)
There is imposed a tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested
in, the purchaser, or any other person by his direction, when the consideration for the
interest or property conveyed equals or exceeds two thousand dollars, (1) subject to the
provisions of subsection (b) of this section, at the rate of five-tenths of one per cent of
the consideration for the interest in real property conveyed by such deed, instrument or
writing, the revenue from which shall be remitted by the town clerk of the municipality
in which such tax is paid, not later than ten days following receipt thereof, to the Commissioner of Revenue Services for deposit to the credit of the state General Fund, and (2)
at the rate of one-fourth of one per cent of the consideration for the interest in real
property conveyed by such deed, instrument or writing, and on and after July 1, 2007,
at the rate of eleven one-hundredths of one per cent of the consideration for the interest
in real property conveyed by such deed, instrument or writing, provided the amount
imposed under this subdivision shall become part of the general revenue of the municipality in accordance with section 12-499.
(b) The rate of tax imposed under subdivision (1) of subsection (a) of this section
shall, in lieu of the rate under said subdivision (1), be imposed on certain conveyances
as follows: (1) In the case of any conveyance of real property which at the time of such
conveyance is used for any purpose other than residential use, except unimproved land,
the tax under said subdivision (1) shall be imposed at the rate of one per cent of the
consideration for the interest in real property conveyed; (2) in the case of any conveyance
in which the real property conveyed is a residential estate, including a primary dwelling
and any auxiliary housing or structures, regardless of the number of deeds, instruments
or writings used to convey such residential real estate, for which the consideration or
aggregate consideration, as the case may be, in such conveyance is eight hundred thousand dollars or more, the tax under said subdivision (1) shall be imposed (A) at the rate
of one-half of one per cent on that portion of such consideration up to and including the
amount of eight hundred thousand dollars, and (B) at the rate of one per cent on that
portion of such consideration in excess of eight hundred thousand dollars; and (3) in
the case of any conveyance in which real property on which mortgage payments have
been delinquent for not less than six months is conveyed to a financial institution or its
subsidiary which holds such a delinquent mortgage on such property, the tax under said
subdivision (1) shall be imposed at the rate of one-half of one per cent of the consideration
for the interest in real property conveyed.
(c) In addition to the tax imposed under subsection (a) of this section, any targeted
investment community, as defined in section 32-222, or any municipality in which properties designated as manufacturing plants under section 32-75c are located, may, on or
after March 15, 2003, impose an additional tax on each deed, instrument or writing,
whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by his direction, when
the consideration for the interest or property conveyed equals or exceeds two thousand
dollars, which additional tax shall be at a rate of up to one-fourth of one per cent of the
consideration for the interest in real property conveyed by such deed, instrument or
writing. The revenue from such additional tax shall become part of the general revenue
of the municipality in accordance with section 12-499.
(1967, P.A. 693, S. 1; 1971, P.A. 158, S. 2; June Sp. Sess. P.A. 83-1, S. 6, 15; P.A. 85-480, S. 1, 3; P.A. 86-397, S. 8,
10; P.A. 89-205, S. 1; 89-251, S. 19, 203; P.A. 91-356, S. 1, 3; P.A. 92-57, S. 1, 2; P.A. 03-2, S. 40; P.A. 04-201, S. 4; 04-216, S. 51; P.A. 05-268, S. 1, 2.)
History: 1971 act substituted "consideration for the interest or property conveyed" for "consideration or value of the
interest or property conveyed"; June Sp. Sess. P.A. 83-1 provided for (1) imposition of a conveyance tax, payable to the
state on each deed or other instrument conveying lands, tenements or other realty at the rate of one-half of one per cent of
the purchase price for the interest in real property conveyed and (2) continuation of the existing conveyance tax payable
to the municipality at the rate of one dollar and ten cents for each one thousand dollars of purchase price, effective July 1,
1983, and applicable to conveyances occurring on or after said date; P.A. 85-480 amended the language of imposition so
that the tax is imposed on the sale or transfer of real property and not upon the deed or instrument of conveyance; P.A. 86-397 reduced the rate of tax from one-half of one per cent to forty-five one-hundredths of one per cent of the full purchase
price for the interest in real property conveyed, effective June 11, 1986, and applicable to any conveyance of an interest
in real property occurring on or after January 1, 1987; P.A. 89-205 made technical changes, including (1) description of
the imposition of tax as applied to the deed in lieu of imposition on the sale or transfer of an interest in real property and
(2) description of the rate of tax as being applied to the consideration for the interest conveyed in lieu of the full purchase
price; P.A. 89-251 provided for changes as follows: (1) Increased the tax under Subdiv. (1) in Subsec. (a) from forty-five
one-hundredths of one per cent to five-tenths of one per cent of the consideration, (2) changed the rate of tax under Subdiv.
(2) in Subsec. (a) from one dollar and ten cents for each one thousand dollars of full purchase price to eleven one-hundredths
of one per cent of the consideration and (3) added Subsec. (b) providing for a higher rate of tax on conveyances for purposes
other than residential and for residential property in the case of an estate for which the consideration exceeds eight hundred
thousand dollars; P.A. 91-356 amended Subsec. (b) to add Subdiv. (3), concerning the rate for certain transfers in lieu of
foreclosure, effective July 1, 1991, and applicable to conveyances occurring on or after said date; P.A. 92-57 amended
Subsec. (b) (3) by including conveyances to the subsidiary of a financial institution holding a delinquent mortgage on the
conveyed real property, effective July 1, 1992, and applicable to conveyances occurring on or after that date; P.A. 03-2
amended Subsec. (a) to make technical changes and increase the municipal portion of the tax to one-fourth of one per cent
from March 15, 2003, until July 1, 2004, made a technical change in Subsec. (b) and added new Subsec. (c) re an additional
tax which certain municipalities may impose during said period, effective March 15, 2003; P.A. 04-201 amended Subsec.
(b) to add provisions re multiple instruments used to convey residential property, effective June 3, 2004; P.A. 04-216
amended Subsec. (a)(2) to extend the time period for the higher rate thereunder until July 1, 2005, and amended Subsec.
(c) to delete sunset provision related to the tax imposed under that subsection, effective May 6, 2004; P.A. 05-268 amended
Subsec. (a) to retain the rate of one-fourth of one per cent until July 1, 2007, and amended Subsec. (c) to make a technical
change and add "up to" re additional tax rate, effective July 1, 2005.
Sec. 12-504a. Conveyance tax on sale or transfer of land classified as farm,
forest or open space land. (a) If at any time there is a change of ownership for any
property that is classified as farm land pursuant to section 12-107c, forest land pursuant
to section 12-107d, or open space land pursuant to section 12-107e, a revised application
shall be filed with the assessor pursuant to said sections 12-107c, 12-107d and 12-107e.
(b) Any land which has been classified by the record owner thereof as open space
land pursuant to section 12-107e, if sold or transferred by him within a period of ten
years from the time he first caused such land to be so classified, shall be subject to a
conveyance tax applicable to the total sales price of such land, which tax shall be in
addition to the tax imposed under sections 12-494 to 12-504, inclusive. Said conveyance
tax shall be at the following rate: (1) Ten per cent of said total sales price if sold within
the first year following the date of such classification; (2) nine per cent if sold within
the second year following the date of such classification; (3) eight per cent if sold within
the third year following the date of such classification; (4) seven per cent if sold within
the fourth year following the date of such classification; (5) six per cent if sold within
the fifth year following the date of such classification; (6) five per cent if sold within
the sixth year following the date of such classification; (7) four per cent if sold within
the seventh year following the date of such classification; (8) three per cent if sold within
the eighth year following the date of such classification; (9) two per cent if sold within
the ninth year following the date of such classification; and (10) one per cent if sold
within the tenth year following the date of such classification. No conveyance tax shall
be imposed on such record owner by the provisions of sections 12-504a to 12-504f,
inclusive, following the end of the tenth year after the date of such classification by the
record owner or person acquiring title to such land or causing such land to be so classified.
(c) Any land which has been classified by the record owner thereof as farm land
pursuant to section 12-107c or as forest land pursuant to section 12-107d, if sold or
transferred by him within a period of ten years from the time he acquired title to such
land or from the time he first caused such land to be so classified, whichever is earlier,
shall be subject to a conveyance tax applicable to the total sales price of such land, which
tax shall be in addition to the tax imposed under sections 12-494 to 12-504, inclusive.
Said conveyance tax shall be at the following rate: (1) Ten per cent of said total sales
price if sold within the first year of ownership by such record owner; (2) nine per cent
if sold within the second year of ownership by such record owner; (3) eight per cent if
sold within the third year of ownership by such record owner; (4) seven per cent if sold
within the fourth year of ownership by such record owner; (5) six per cent if sold within
the fifth year of ownership by such record owner; (6) five per cent if sold within the
sixth year of ownership by such record owner; (7) four per cent if sold within the seventh
year of ownership by such record owner; (8) three per cent if sold within the eighth year
of ownership by such record owner; (9) two per cent if sold within the ninth year of
ownership by such record owner; and (10) one per cent if sold within the tenth year of
ownership by such record owner. No conveyance tax shall be imposed by the provisions
of sections 12-504a to 12-504f, inclusive, following the end of the tenth year of ownership by the record owner or person acquiring title to such land or causing such land to
be so classified.
(1972, P.A. 152, S. 1; P.A. 74-343, S. 1, 7; P.A. 79-513, S. 5, 6; P.A. 80-483, S. 57, 186; P.A. 87-589, S. 22, 87; P.A.
05-190, S. 6.)
History: P.A. 74-343 added references to record owner of land and made technical change re ten-year period during
which conveyance tax applies; P.A. 79-513 amended section to make tax applicable to only ten-year period after land first
classified, deleting alternate applicability to ten-year period after land acquired, if earlier, effective July 1, 1979, and
applicable to the sale of any land classified for the first time as farm, forest or open space land on or after that date; P.A.
80-483 added Subsec. (b) re conveyance tax on land classified as farm land; P.A. 87-589 made technical change in Subsec.
(b), substituting reference to Sec. 12-494 for reference to Sec. 12-294; P.A. 05-190 added new Subsec. (a) re submission
of a revised application upon change of ownership of property classified as farm land, forest land or open space land,
redesignated existing Subsecs. (a) and (b) as new Subsecs. (b) and (c), and amended said Subsecs. to apply provisions to
land transferred and make tax applicable to person acquiring title or causing land to be classified, effective July 1, 2005,
and applicable to sales, transfers or changes in use of land classified as farm land, forest land or open space land that occur
on or after that date.
Sec. 12-504c. Excepted transfers. The provisions of section 12-504a shall not
be applicable to the following: (1) Transfers of land resulting from eminent domain
proceedings; (2) mortgage deeds; (3) deeds to or by the United States of America, state
of Connecticut or any political subdivision or agency thereof; (4) strawman deeds and
deeds which correct, modify, supplement or confirm a deed previously recorded; (5)
deeds between husband and wife and parent and child when no consideration is received,
except that a subsequent nonexempt transfer by the grantee in such cases shall be subject
to the provisions of said section 12-504a as it would be if the grantor were making such
nonexempt transfer; (6) tax deeds; (7) deeds of foreclosure; (8) deeds of partition; (9)
deeds made pursuant to a merger of a corporation; (10) deeds made by a subsidiary
corporation to its parent corporation for no consideration other than the cancellation or
surrender of the capital stock of such subsidiary; (11) property transferred as a result of
death when no consideration is received and in such transfer the date of acquisition or
classification of the land for purposes of sections 12-504a to 12-504f, inclusive, whichever is earlier, shall be the date of acquisition or classification by the decedent; (12) deeds
to any corporation, trust or other entity, of land to be held in perpetuity for educational,
scientific, aesthetic or other equivalent passive uses, provided such corporation, trust
or other entity has received a determination from the Internal Revenue Service that
contributions to it are deductible under applicable sections of the Internal Revenue Code;
(13) land subject to a covenant specifically set forth in the deed transferring title to such
land, which covenant is enforceable by the town in which such land is located, to refrain
from selling, transferring or developing such land in a manner inconsistent with its
classification as farm land pursuant to section 12-107c, forest land pursuant to section
12-107d or open space land pursuant to section 12-107e for a period of not less than
eight years from the date of transfer, if such covenant is violated the conveyance tax set
forth in this chapter shall be applicable at the rate multiplied by the market value as
determined by the assessor which would have been applicable at the date the deed containing the covenant was delivered and, in addition, the town or any taxpayer therein
may commence an action to enforce such covenant; (14) land the development rights
to which have been sold to the state under chapter 422a; and (15) deeds to or from any
limited liability company when the grantors or grantees are the same individuals as
the principals or members of the limited liability company. If action is taken under
subdivision (13) of this section by a taxpayer, such action shall commence prior to the
ninth year following the date of the deed containing such covenant and the town shall
be served as a necessary party.
(1972, P.A. 152, S. 3; P.A. 73-585, S. 1; P.A. 99-173, S. 50, 65; P.A. 05-190, S. 7.)
History: P.A. 73-585 added Subdivs. (l) and (m) exempting deeds of land to be held in perpetuity for educational,
scientific, aesthetic, etc. purposes and land subject to covenant; P.A. 99-173 added Subdiv. (n) re land the development
rights to which have been sold to the state under chapter 422a, effective June 23, 1999, and applicable to transfers made
on or after July 1, 1999; P.A. 05-190 replaced alphabetic subdivision designators with numeric designators, deleted former
provision re deeds releasing property which is security for debt or other obligation, added new Subdiv. (7) exempting
deeds of foreclosure, amended Subdiv. (11) to limit provisions to transfers when no consideration is given, amended
Subdiv. (13) to provide that the applicable tax shall be determined at a rate multiplied by the market value as determined
by the assessor, added Subdiv. (15) exempting deeds to or from limited liability companies under certain conditions, added
provision re action taken under Subdiv. (13) to commence prior to ninth year following date of deed, and made technical
changes throughout, effective July 1, 2005, and applicable to sales, transfers or changes in use of land classified as farm
land, forest land or open space land that occur on or after that date.
Sec. 12-504d. Appeals. Any person aggrieved by the imposition of a tax under the
provisions of sections 12-504a to 12-504f, inclusive, may appeal therefrom as provided
in sections 12-111, 12-112 and 12-118. If the time for appealing to the board of assessment appeals has passed, the taxpayer may appeal at the next regularly scheduled
meeting.
(1972, P.A. 152, S. 4; P.A. 99-89, S. 8, 10; P.A. 05-190, S. 8.)
History: P.A. 99-89 made technical changes, effective June 3, 1999; P.A. 05-190 added provision authorizing appeal
as provided in Sec. 12-118 and provided that if time for appeal to the board of assessment has passed, appeal may be made
at the next regularly scheduled board meeting, effective July 1, 2005, and applicable to sales, transfers or changes in use
of land classified as farm land, forest land or open space land that occur on or after that date.
Sec. 12-504e. Conveyance tax applicable on change of use or classification of
land. Any land which has been classified by the owner as farm land pursuant to section
12-107c, as forest land pursuant to section 12-107d, or as open space land pursuant to
section 12-107e, if changed by him, within a period of ten years of his acquisition of
title, to use other than farm, forest or open space, shall be subject to said conveyance
tax as if there had been an actual conveyance by him, as provided in sections 12-504a
and 12-504b, at the time he makes such change in use. For the purposes of this section:
(1) The value of any such property shall be the fair market value thereof as determined
by the assessor in conjunction with the most recent revaluation, and (2) the date used
for purposes of determining such tax shall be the date on which the use of such property
is changed, or the date on which the assessor becomes aware of a change in use of such
property, whichever occurs first.
(1972, P.A. 152, S. 5; P.A. 74-343, S. 3, 7; P.A. 05-190, S. 9.)
History: P.A. 74-343 specified classification within ten-year period of acquisition of title and made technical changes
for clarity; P.A. 05-190 revised provision re use of fair market value to determine value of property and added provision
re date used for determining the tax, effective July 1, 2005, and applicable to sales, transfers or changes in use of land
classified as farm land, forest land or open space land that occur on or after that date.
Sec. 12-504f. Classification of land classified as farm, forest or open space personal to owner. Certificate of classification. The tax assessor shall file annually, not
later than sixty days after the assessment date, with the town clerk a certificate for any
land which has been classified as farm land pursuant to section 12-107c, as forest land
pursuant to section 12-107d, or as open space land pursuant to section 12-107e, which
certificate shall set forth the date of the initial classification and the obligation to pay
the conveyance tax imposed by this chapter. Said certificate shall be recorded in the
land records of such town. Any such classification of land shall be deemed personal to
the particular owner who requests such classification and shall not run with the land.
The town clerk shall notify the tax assessor of the filing in the land records of the sale
of any such land. Upon receipt of such notice the tax assessor shall inform the new
owner of the tax benefits of classification of such land as farm land, forest land or open
space land.
(1972, P.A. 152, S. 6; June, 1972, P.A. 1, S. 12; P.A. 73-585, S. 2; P.A. 74-343, S. 4, 7; P.A. 05-190, S. 11.)
History: 1972 act specified that annual filing to be "not later than sixty days after the assessment date"; P.A. 73-585
required that certificate set forth date of initial classification and obligation to pay conveyance tax; P.A. 74-343 added
provision which stated that land classification personal to owner and does not run with land; P.A. 05-190 added provision
requiring town clerk to notify the tax assessor of sale and requiring the tax assessor to notify the new owner of tax benefits
of classification of land as farm land, forest land or open space land, effective July 1, 2005.
Sec. 12-504h. Termination of classification as farm, forest or open space land.
Any such classification of farm land pursuant to section 12-107c, forest land pursuant
to section 12-107d, or open space land pursuant to section 12-107e, shall be deemed
personal to the particular owner who requests and receives such classification and shall
not run with the land. Any such land which has been classified by a record owner shall
remain so classified without the filing of any new application subsequent to such classification, notwithstanding the provisions of said sections 12-107c, 12-107d and 12-107e,
until either of the following shall occur: (1) The use of such land is changed to a use
other than that described in the application for the existing classification by said record
owner, or (2) such land is sold or transferred by said record owner. Upon the sale or
transfer of any such property, the classification of such land as farm land pursuant to
section 12-107c, forest land pursuant to section 12-107d, or open space land pursuant
to section 12-107e, shall cease as of the date of sale or transfer. In the event that a change
in use of any such property occurs, the provisions of section 12-504e, shall apply in
terms of determining the date of change and the classification of such land as farm land
pursuant to section 12-107c, forest land pursuant to section 12-107d, or open space land
pursuant to section 12-107e shall cease as of such date.
(P.A. 74-343, S. 6, 7; P.A. 05-190, S. 10.)
History: P.A. 05-190 added provision deeming classification of farm land, forest land or open space land to be personal
to owner and shall not run with the land, provided that upon sale or transfer of property, the classification ceases as of the
date of the sale or transfer and made technical changes, effective July 1, 2005, and applicable to sales, transfers or changes
in use of land classified as farm land, forest land or open space land that occur on or after that date.