Conn. Gen. Stat. § 12-498

Current with legislation from the 2024 Regular and Special Sessions.

Section 12-498 - Exempt transactions

(a) The tax imposed by section 12-494 shall not apply to:

(1) Deeds that this state is prohibited from taxing under the Constitution or laws of the United States;

(2) Deeds that secure a debt or other obligation;

(3) Deeds to which this state or any of its political subdivisions or its or their respective agencies is a party;

(4) Tax deeds;

(5) Deeds of release of property that is security for a debt or other obligation;

(6) Deeds of partition;

(7) Deeds made pursuant to mergers of corporations;

(8) Deeds made by a subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the subsidiary's stock;

(9) Deeds made pursuant to a decree of the Superior Court under section 46b-81, 49-24 or 52-495 or pursuant to a judgment of foreclosure by market sale under section 49-24 or pursuant to a judgment of loss mitigation under section 49-30t or 49-30u;

(10) Deeds, when the consideration for the interest or property conveyed is less than two thousand dollars;

(11) Deeds between affiliated corporations, provided both of such corporations are exempt from taxation pursuant to paragraph (2), (3) or (25) of Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time;

(12) Deeds made by a corporation that is exempt from taxation pursuant to paragraph (3) of Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to any corporation which is exempt from taxation pursuant to said paragraph (3) of said Section 501(c);

(13) Deeds made to any nonprofit organization that is organized for the purpose of holding undeveloped land in trust for conservation or recreation purposes;

(14) Deeds between spouses;

(15) Deeds of property for the Adriaen's Landing site or the stadium facility site, for purposes of the overall project, each as defined in section 32-651;

(16) Land transfers made on or after July 1, 1998, to a water company, as defined in section 16-1, provided the land is classified as class I or class II land, as defined in section 25-37c, after such transfer;

(17) Transfers or conveyances to effectuate a mere change of identity or form of ownership or organization, where there is no change in beneficial ownership;

(18) Conveyances of residential property that occur not later than six months after the date on which the property was previously conveyed to the transferor if the transferor is (A) an employer that acquired the property from an employee pursuant to an employee relocation plan, or (B) an entity in the business of purchasing and selling residential property of employees who are being relocated pursuant to such a plan;

(19) Deeds in lieu of foreclosure that transfer the transferor's principal residence;

(20) Any instrument that transfers the transferor's principal residence where the gross purchase price is insufficient to pay the sum of (A) mortgages encumbering the property transferred, and (B) any real property taxes and municipal utility or other charges for which the municipality may place a lien on the property and that have priority over the mortgages encumbering the property transferred;

(21) Deeds that transfer the transferor's principal residence, where such residence has a concrete foundation that has deteriorated due to the presence of pyrrhotite and such transferor has obtained a written evaluation from a professional engineer licensed pursuant to chapter 391 indicating that the foundation of such residence was made with defective concrete. The exemption authorized under this subdivision shall (A) apply to the first transfer of such residence after such written evaluation has been obtained, and (B) not be available to a transferor who has received financial assistance to repair or replace such foundation from the Crumbling Foundations Assistance Fund established under section 8-441; and

(22) Deeds of property with dwelling units where all such units are deed restricted as affordable housing, as defined in section 8-39a. For deeds of property with dwelling units where a portion of such units are subject to such deed restrictions, the exemption authorized under this subdivision shall apply only with respect to the dwelling units subject to such deed restrictions and such exemption shall be reduced proportionally based on the number of units not subject to such deed restrictions.

(b) The tax imposed by subdivision (1) of subsection (a) of section 12-494 shall not apply to:

(1) Deeds of the principal residence of any person approved for assistance under section 12-129b or 12-170 aa for the current assessment year of the municipality in which such person resides or to any such transfer that occurs within fifteen months of the completion of any municipal assessment year for which such person qualified for such assistance;

(2) Deeds of property located in an area designated as an enterprise zone in accordance with section 32-70; and

(3) Deeds of property located in an entertainment district designated under section 32-76 or established under section 2 of public act 93-311*.

Conn. Gen. Stat. § 12-498

(1967, P.A. 693, S. 5; 1971, P.A. 158, S. 1; P.A. 85-159, S. 10, 19; 85-469, S. 4-6; 85-480, S. 2, 3; P.A. 87-281, S. 1, 2; 87-586, S. 8, 12; P.A. 89-205, S. 2; P.A. 90-315, S. 4, 6; P.A. 91-403 , S. 1 , 2 ; P.A. 93-311 , S. 4 , 8 ; 93-389 , S. 6 , 7 ; Sept. Sp. Sess. P.A. 93-1 , S. 30 , 35 ; P.A. 94-247 , S. 3 , 8 ; P.A. 98-157 , S. 2 , 15 ; 98-244 , S. 22 , 35 ; Dec. Sp. Sess. P.A. 98-1 , S. 31 , 43 ; P.A. 99-231 , S. 1 ; 99-241 , S. 55 , 66 ; P.A. 00-140 , S. 23 , 40 ; P.A. 04-154 , S. 1 ; June Sp. Sess. P.A. 09-3 , S. 114 ; June Sp. Sess. P.A. 10-1, S. 2; P.A. 14-60 , S. 8 ; 14-84 , S. 13 ; 14-217 , S. 207 ; P.A. 16-65 , S. 91 .)

*Note: Section 2 of public act 93-311 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

Amended by P.A. 23-0207,S. 25 of the Connecticut Acts of the 2023 Regular Session, eff. 7/1/2023.

Amended by P.A. 19-0117, S. 336 of the Connecticut Acts of the 2019 Regular Session, eff. 7/1/2019.

Amended by P.A. 16-0065, S. 91 of the Connecticut Acts of the 2016 Regular Session, eff. 10/1/2016.

Amended by P.A. 14-0217, S. 207 of the Connecticut Acts of the 2014 Regular Session, eff. 6/13/2014.

Amended by P.A. 14-0084, S. 13 of the Connecticut Acts of the 2014 Regular Session, eff. 1/1/2015.

Amended by P.A. 14-0060, S. 8 of the Connecticut Acts of the 2014 Regular Session, eff. 10/1/2014.

Amended by P.A. 10-0001, S. 2 of the June 2010 Sp. Sess., eff. 10/1/2010.

Amended by P.A. 09-0003, S. 114 of the June 2009 Sp. Sess., eff. 1/1/2010.

Cited. 228 Conn. 375 . Cited. 31 Conn.Supp. 154 .