Ruling 89-41

Real Estate Conveyance Tax

This is in reply to your letter requesting interpretations of the new tax law effective July 1, 1989.

Your first question relates to changes made in the real estate conveyance tax. You inquire as to the proper rate of conveyance tax for property that has mixed residential and commercial use. Please be advised that the rate of taxation should be based on the predominant use of the property.

Your second question pertains to whether business analysis, management, consulting and public relations services (Conn. Gen. Stat. §12-407(2)(i)(J)) includes services rendered by real estate brokers, real estate salesmen and real estate appraisers in connection with the sale, lease, rental or appraisal of real property. Please be advised that the above-cited statutory section does not tax the services of a realtor on the sale, lease or rental of real property, nor does it include the services of a realtor who appraises real estate.

TIMOTHY F. BANNON
COMMISSIONER

August 14, 1989