Substitute House Bill No. 5979 proposes to exempt public housing authorities from the real estate conveyance tax and the controlling interest transfer tax, effective July 1, 2025. The bill modifies Section 12-498 of the general statutes by adding a new exemption for deeds made to public housing authorities and repeals certain existing provisions, replacing them with updated language that clarifies various exemptions, including those for deeds between spouses and properties with affordable housing restrictions. Additionally, it amends Section 12-638b to introduce an exemption for the sale or transfer of controlling interests in entities to public housing authorities, alongside existing exemptions for transactions in enterprise zones and those that do not change beneficial ownership.

The fiscal impact of the bill is expected to be significant, with a projected General Fund revenue loss of approximately $2.2 million annually starting in fiscal year 2026. Municipalities will also face revenue losses due to the exemption of certain deeds from the municipal real estate conveyance tax and certain sales or transfers from the controlling interest transfer tax. Overall, the bill aims to facilitate transactions involving public housing authorities by alleviating tax burdens, thereby promoting public housing initiatives and supporting the financial viability of these entities.

Statutes affected:
Committee Bill: 12-498, 12-638b
FIN Joint Favorable: 12-498, 12-638b
File No. 855: 12-498, 12-638b