Current through September 9, 2024
(a) Conveyances which are subject to tax. The
following are examples of conveyances which are subject to the tax:
(1) A conveyance of realty in exchange for
property other than realty. For the measure of the tax, see section
12-494-1(a).
(2) A conveyance of realty in exchange for
the conveyance of other realty. Each conveyance is subject to the tax. For the
measure of the tax, see section
12-494-1(a).
(3) A transfer of a cooperative unit. For the
measure of the tax, see section
12-494-1(a).
(The measure of the tax includes the unit's percentage or fractional share of
the common expense liability multiplied by underlying mortgage or similar
recorded indebtedness.)
(4) A
conveyance of a reversionary interest by a lessor. For the measure of the tax,
see section
12-494-1(a).
(5) A sale (either by bill of sale or by deed
of conveyance) of a mobile manufactured home which is located in a mobile
manufactured home park licensed under chapter 412 of the Connecticut General
Statutes or which is located on a single-family lot as a permitted
nonconforming use or as otherwise permitted by municipal zoning regulations.
For the measure of the tax, see section
12-494-1(a).
(b) Conveyances which are exempt
from tax. The following are examples of conveyances which would otherwise be
subject to the tax but which are, by virtue of federal law, exempt from the
tax. (The conveyances which would otherwise be subject to the tax but which
are, by virtue of State law, exempt from the tax are set forth in section
12-498.) No
tax must be paid on the following conveyances:
(1) Conveyances of realty by an entity such
as a production credit association, which entity is, by virtue of federal law,
exempt from all taxation imposed by any state.
(2) A deed by a debtor under a plan confirmed
under
11 U.S.C. §
1129, whether the transferee is the
reorganized debtor, a corporation specifically organized under the plan, an
entity financially related to the debtor's estate or an unrelated party, and
whether or not the plan expressly refers to the deed or authorizes the
transfer.
(c)
Transactions which are not conveyances. The following are examples of
transactions which are not conveyances and, accordingly, not subject to the
tax:
(1) An option for the purchase of
realty.
(2) A contract for the sale
of realty, if the contract does not vest legal title.
(3) An assignment of a right held under an
agreement described in subdivision (1) or (2) of this subsection.
(4) A deed deposited in escrow. The deed is
subject to tax upon delivery to and acceptance by the transferee.
(5) A lease other than a lease described in
section
12-494-1(b)
(2).
(d) Conveyances on
which no tax must be paid. The following are examples of conveyances which are
not subject to the tax and, thus, cannot, strictly speaking, be exempt from the
tax. (The conveyances which would otherwise be subject to the tax but which are
exempt from the tax are, in the case of conveyances exempt under State law, set
forth in section
12-498, and,
in the case of conveyances exempt under federal law, set forth in subsection
(b) of this section.) No tax must be paid on the following conveyances:
(1) A deed conveying realty as a bona fide
gift, even if the deed recites a consideration for the transfer, such as
"natural love and affection and $1," including a gift of realty by one person
to another accomplished through the conveyance of the property by such person
for an ostensible consideration to a "straw man" who immediately reconveys the
property to such other person.
(2)
A deed to confirm title already vested in the transferee, such as a quitclaim
deed to correct a flaw in title.
(3) A deed from an agent to his principal
conveying realty purchased for and with funds of the principal.
(4) A deed executed by a debtor conveying
property to a trustee for the benefit of his creditors; however, when the
trustee conveys such property to a creditor or sells it to any other person,
the deed executed by him is subject to tax.
(5) A conveyance to a receiver of realty
included in the receivership assets, and reconveyance of such realty upon
termination of the receivership.
(6) A deed to or by a fiduciary not pursuant
to a sale.
