Raised Bill No. 266, introduced in the February Session, 2024, proposes amendments to the conveyance tax on real estate transactions in the state. The bill seeks to increase the conveyance tax rate for certain home sales, specifically targeting residential properties sold to buyers who are not individuals. The bill includes insertions and deletions to the existing law, which are intended to take effect on October 1, 2024.

The key changes proposed by the bill include the addition of a new subsection (c), which sets a higher tax rate for non-individual purchasers of residential real estate. For such buyers, the tax rate would be 1.75% on the portion of the consideration up to and including $800,000, and 2.25% on the portion exceeding $800,000. The bill also redefines "unimproved land" to include land designated as farm, forest, or open space land, and adjusts the tax rates for conveyances of real property used for non-residential purposes and for residential estates with consideration of $800,000 or more. Additionally, the bill mandates that any revenue exceeding $300 million received by the state from the conveyance tax be transferred to the Housing Trust Fund, with an annual adjustment based on inflation.