TAX NEWS - January 2009

Connecticut tax: 2009 Legislative Changes Affecting the Connecticut Real Estate Conveyance Tax

SN 2009(9) - 2009 Legislative Changes Affecting the Connecticut Real Estate Conveyance Tax

Purpose: This Special Notice summarizes legislation passed during the 2009 June Special Session affecting the state and municipal real estate conveyance tax.

Effective Date: Effective with respect to deeds of sale that convey an interest in real property on or after January 1, 2010.

Statutory Authority: Conn. Gen. Stat. §12-498(a)(9), as amended by 2009 Conn. Pub. Acts 3, §114 (June Spec. Sess.).

Deeds of Sale Under a Decree of the Superior Court Pertaining to Foreclosure by Sale Are Subject to the Real Estate Conveyance Tax: The judicial foreclosure process in Connecticut is carried out by either strict foreclosure or a decree of sale. In the case of a decree of sale, the court establishes the time and manner of the sale; appoints a committee to sell the property; and appoints three appraisers to determine the value of the property. The committee then proceeds to sell the real property. As evidence of the sale, a deed (commonly referred to as a committee deed) is issued to the purchaser. Deeds made under a decree of the Superior Court pertaining to a foreclosure by sale were previously exempt from the real estate conveyance tax under Conn. Gen. Stat. §12-498(a)(9).

2009 Conn. Pub. Acts 3, §114 (June Spec. Sess.) repeals the real estate conveyance tax exemption for deeds made under a decree of the Superior Court pertaining to foreclosures by sale. As a result, deeds made under a decree of sale conveying an interest in real property on or after January 1, 2010, will be subject to the real estate conveyance tax.

Effect on Other Documents: None affected.

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:

1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
860-297-5962 (from anywhere).
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.

Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications.

Paperless Filing/Payment Methods (fast, easy, free, and confidential):

Business and individual taxpayers can use the Taxpayer Service Center (TSC) at www.ct.gov/TSC to file a variety of tax returns, update account information, and make payments online.

File Electronically: You can choose first-time filer information and filing assistance or log directly into the TSC to file returns and pay taxes.

Pay Electronically: You can pay taxes for tax returns that cannot be filed through the TSC. Log in and select the Make Payment Only option. Designate a payment date up to the due date of the tax and mail a paper return to complete the filing process.