The bill amends the "Real Estate Conveyance Tax" section of the General Laws to adjust the tax rate on real estate transactions. It specifies that a tax of $2.30 per $500 of the transaction value is to be levied when the consideration exceeds $100. The bill also introduces a new provision for residential property transactions over $800,000, allowing municipalities to impose an additional local tax at a rate not exceeding $10 per $500 of the consideration above $800,000. The revenue from this additional tax is earmarked for the development of affordable housing within the municipality for individuals or families earning at or below 80% of the area median income.

The bill further defines an "acquired real estate company" as one that undergoes a significant change in ownership interest (50% or more within three years) without disrupting its operational continuity. It outlines the criteria for such a company, focusing on real estate ownership and income from real estate activities. The bill mandates that any transfer leading to a company becoming an acquired real estate company must be reported and the tax paid to the division of taxation before the transfer; failure to comply will result in the transfer being considered fraudulent and void against the state. The act will be effective immediately upon passage.

Statutes affected:
2361: 44-25-1