Upcoming CT DRS webinar: Select to register for the upcoming Withholding Forms W-2 and 1099 Annual Filing Webinar on Wednesday, December 4, 2024, at 10:00 a.m.

Bulletin #20

Real Estate Conveyance Tax

This Bulletin is obsoleted by AN 94(6)

Since the enactment, eight months ago, of Public Act 83-1, which provided, in part, for the State Real Estate Conveyance Tax, we now have somewhat of a record as to it's application and administration.

Many of the situations pertain to local municipalities only, and are resolved on that level; however, two items which we feel are of statewide interest are as follows:

1. In the sale of real property, the full purchase price may not necessarily consist of monies only. The assumption of an existing mortgage or the assumption of a sewer lien should be included in the full purchase price. It is doubtful that a transfer of real property would take place if the conditions of satisfying other monetary considerations were not resolved.

For example, if a grantor (seller) sold a parcel of real property wherein the grantee (buyer) paid Fifty Thousand Dollars ($50,000.) in cash, assumed an existing mortgage of Thirty Thousand Dollars ($30,000.) and a sewer lien of Twenty Thousand Dollars ($20,000.), the State Real Estate Conveyance Tax should be predicated on a full purchase price of One Hundred Thousand Dollars ($100,000.).

2. A bond for Deed is not considered a conveyance or transfer of title.